Netflix: The Public Relations Box Office Flop

內容大綱
On the morning of September 19, 2011, the chief executive officer (CEO) of the online movie provider Netflix Incorporated became witness to growing public discontent and media criticism directed at the company. The previous evening, the CEO had announced on the company blog that Netflix would be splitting into two separate entities. With the proposed change, the Netflix DVD-by-mail service would be spun out and renamed Qwikster. The move would leave the Netflix brand to focus on offering online streamed entertainment. This was not the first time Netflix had caused large-scale consumer frustration, as a few months earlier in July 2011 the company had announced it would be increasing rates by as much as 60 per cent. The result was a loss of over one million Netflix subscribers by September 2011, representing the first time the company had ever lost subscribers from one quarter to the next. Although the split into two separate entities could be seen as a good business strategy, Netflix did not follow through with a well-developed communication plan. Moving forward, both Netflix and Qwikster had come to represent an unfortunate dichotomy, and Netflix’s management was in desperate need to develop better communications with disgruntled consumers or risk losing additional subscribers and lucrative profits to a number of growing competitors.
學習目標
<ul><li>Place students directly into the role of an organization that is facing a crisis situation, as a result of management’s previous business and communication decisions.</li><li>Explore how technology and social media are changing how businesses and consumers interact in cyberspace.</li><li>Provide students with an opportunity to develop their analytical, communication and decision-making skills by evaluating a business situation.</li><li>Allow students to decide upon a starting point, strategy, and tools to deliver a successful action plan for Netflix’s management to utilize going forward.</li></ul>
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