Netflix PR Proposal

Table of Contents__________________________________________

I. Situational Analysis.

II. Targeted Publics.

III. Objectives

IV. Messages.

V. Strategies.

VI. Tactics

VII. Appendix .

Situational Analysis__________________________________________

StrengthsWeaknesses

Positive and large brand recognition Easily accessible platform (online streaming) DVDs delivered via first class mail More than 1 billion hours of television and movies Netflix original series Affordability Easy to navigate webpage Mutually beneficial relationships with Entertainment Video providers New family plan: $11.99 a month and you can watch on up to four devices Large social media presence Policy change: limiting streaming to one device at a time Price hikes Content is not always up to date (DVD vs. Streaming) Failed partnership with Starz Leaked information

OpportunitiesThreats

Growing demand for online video streaming Advertising Investment in new areas Expanding newer content ABC, NBC, FOX Hulu, Redbox, Google, Amazon OnDemand, Television Recording

Founded in 1997, Netflix, Inc. is the worlds leading Internet subscription service for movies and television series. With more than 44 million members, Netflix has subscribers in over 40 countries (Netflix 2014). Currently, Netflix members can watch as much as they want, anytime, anywhere and off of any device that has Internet-connection for $7.99 a month (Netflix 2014). However, the subscription cost is expected to increase within the year. This online movie and television service does not have any commercials and provides a billion hours of television shows and movies. Netflix also offers popular original series including House of Cards and Orange is the New Black. Offline, Netflix delivers DVDs and Blu-Ray discs to subscribers homes via first class mail. Netflixs headquarters are in Los Gatos, California and they have more than 3,000 employees (Netflix 2014). Netflix maintains its relationship with its members through social media accounts including their YouTube page, Blog, Tech Blog, Facebook Page, and Twitter Feed. Reed Hastings, the CEO of Netflix, also interacts through his Public Facebook Page (Netflix 2014).

The public relations issue that PBV Relations used to focus their research on in the preparation of this proposal was the forecasted policy change that might prove to be detrimental to the future success of Netflix, Inc. Chief Executive Officer Reed Hastings has discussed limiting the number of viewers per account to one device at a time. He believes that tightening policies and boosting prices will increase the organizations profits (Bloomberg 2013). Within the current policy, 10 million people are watching the online video service without paying, according to Wedbush Securities analyst Michael Pachter (Bloomberg 2013). Many subscribers share their login information with friends and family, allowing them to indulge in the benefits without paying the small monthly fee. Although this plan has yet to be put into action, the discussion of it is a threat to the future of Netflix, while other services allow viewers on multiple devices.

Statement of Purpose___________________________________________________________________________

Although there is currently an unfavorable policy change in development, we are looking to maintain, and gain subscribers while forging favorable and mutually beneficial relationships with important publics despite the public backlash.

Targeted Publics______________________________________________________________________________

Employees:

Employees are the foundation of Netflix. To keep Netflix on the right track, the first place to look is the employees. In order to achieve strong results, it is necessary to have a strong team. Netflix has a good relationship with its employees so far and obviously takes pride in its team. Netflix attracts a work force of leaders and understands that their talented colleagues work on hard problems that affect millions of customers. PBV Relations wants to keep that relationship strong as well as show this dynamic to publics outside of the company. PBV would also like to help demonstrate to outside publics the exact type of people that Netflix has working for it in order to boost the companys public image.

(CEO: Reed Hastings, Chief Marketing Officer: Kelly Bennett, Chief Talent Officer: Tawni Cranz, Chief Communications Officer: Jonathan Friedland, Chief Product Officer: Neil Hunt, General Counsel: David Hyman, Chief Streaming and Partnerships Officer: Greg Peters, Chief Content Officer- Ted Sarandos, Chief Financial Officer: David Wells, Directors, 2,000 plus employees (part time and full time))

Customers:

Happy customers make for successful businesses. Current customers are the key in being able to spread the word about Netflix in order to attract aware publics who may subsequently become subscribers as well. By targeting customers and listening to their wants, needs, and desires, Netflix will be able to continue and increase its current level of success.

(There are 48 million members in 40 countries.)

Competing Companies:

It is important to maintain a positive relationship with competing companies in order to have an honorable reputation both internally and externally.

(ABC, NBC, FOX, Hulu, Red Box, Google, Amazon, Cable, OnDemand, Recording Devices)

Investors:

In order to recover from lost profit after rising prices and policy changes, it is important to maintain favorable relationships with investors during to ensure success.

(Investors are a necessity to the success of Netflix. Its main public investor is George (Skip) Battle. The companys ticker is NFLX.)

Content Providers:

Netflix is always looking to provide up-to-date and desirable content to its subscribers. Expanding the brand will be attractive to providers and give content providers the opportunity to expand their revenue from just movie ticket sales and DVD sales. They will also be able to reap the benefits of providing content to Netflix.

(Netflix Original Series, Dream Works Animation, Cinedigm Digital Cinema Corp.)

Potential Subscribers:

Netflix is always looking to increase its number of subscribers. This includes, but is not limited to, the following:

People who are currently using or subscribe to competing companies People who are unaware of Netflix People who are hesitant to get Netflix People who are aware of Netflix, but havent actively sought it out People who use Netflix, but dont have their own subscriptions (How revenue is being lost)

Objectives______________________________________________________________________________

1. OBJECTIVE ONE: CUSTOMER CONTACTImprove customer contact with employees by 10% over the next 3 months while policy changes are being implemented.

2. OBJECTIVE TWO: SUBSCRIBER LOYALTYKeep subscribers loyal to Netflix and increase referrals to potential subscribers by 15% within the next five months. By doing so, Netflixs brand will continue to grow and will begin to inherit the necessary revenue in order to afford new content.

3. OBJECTIVE THREE: COMPETING COMPANY AFFAIRSMaintain a positive relationship with competing companies while monitoring their own customer relationships in order to see how to further improve its own. In doing so, the company will be able to better understand how to accurately target key publics.

4. OBJECTTIVE FOUR: INVESTOR RELATIONSCommunicate to investors that Netflix will continue to be a successful competitor in its industry and increase the number of investors by 20% by the end of 2014. This will help keep a strong support base during policy changes.

5. OBJECTIVE FIVE: VIEWING CONTENTProvide viewers with 30% more content by the end of 2014. 20% of this content should have been released within the past 5 years. New content will keep customers and potential customers interested in Netflix and returning to view more content.

6. OBJECTIVE SIX: SUBSCRIPTION RATESIncrease subscription rates by 20% within the next fiscal year in order to maintain a high fan base, keep revenue high, and maintain Netflixs standing in the online video streaming industry.

Messages______________________________________________________________________________

Messages to employees: Employees will work together to continue Netflixs rate of success. Netflix will provide a rewarding place of work for all its employees. Netflix will ensure that its employees feel respected, appreciated and thanked for their hard work.

Messages to customers: Netflix will continue to be affordable. Netflix will provide as much new content as possible. Netflix will continue to produce their exclusive original series.

Messages to competing companies: Netflix is an operational threat to competitors. Netflix aims to continue to surpass competing companies. Netflix will offer the best deals to subscribers and maintain its position as the number one online content provider.

Messages to investors: Netflix will continue to be a successful competitor in its industry. The goal continues to be to increase its subscribers and provide desirable content. Netflix will offer only the best relationships and benefits to its investors.

Messages to content providers: Netflix has a large number of subscribers. Benefits exist for both parties in the exchange of content and services.

Messages to potential subscribers: Netflix is the best option when it comes to online media streaming. Netflix is affordable and easily accessible. Netflix offers a wide variety of viewing options. Netflix values its relationship with its subscribers.

Strategies______________________________________________________________________________

1. Use social media platforms as a way to communicate with key stakeholders in order to maintain brand loyalty.2. Heavily incorporate client interaction in order to make them feel involved. Use this interaction in order to spread their input to potential subscribers who may want to develop a working relationship with Netflix as well.

3. Hold philanthropy events in order to improve relations with competing companies and show customers that Netflix is adaptable and willing to work together to support a good cause.

4. Special events such as creative competitions are a way to increase interest and participation in social media related to Netflix. With increased participation, brand awareness will grow.

5. It is very important to consider customer feedback when it comes to any company. Without being aware of what key publics are thinking, it will be unknown whether actions that have been taken were successful. Also, it provides knowledge regarding what next best step would be.

6. Networking creates and maintains positive and beneficial relationships with stakeholders and the general public. Networking also allows for growth in brand recognition, content, and subscribers.

Tactics_________________________________________

Social Media Platforms1. Create a Facebook group to answer questions with interactive group chats.a. Create a group with CEO, Reed Hastings, and five other head employees.b. Have interactive sessions twice a week for one hour to answer any and all questions.c. Post statuses in the group offering advice and promotional deals.(i.e. will receive a scholarship in order to highlight Netflixs support of education)

2. Continue to utilize all social media bases that have been successful and reached a fan basea. Blog more updates and personal stories.b. Instagram news that reaches the Facebook page must be in sync with Netflixs Instagram account.c. Twitter incorporate hashtags, especially #getyourflixfix.

Client Interaction1. Hold a promotion deal according to the number of referrals made by current customersa. If a subscriber refers 10 friends, they will receive a free month of subscription.b. Those who have been referred must send in their email address so they can be sent weekly happenings.c. Subscribers that were referred will receive 20% off of their first months bill.

2. Commercial competition for Netflix submitted by subscribers and non-subscribers to be aired on national television. The winner will receive a $1, 000 scholarship.a. The commercial is required to integrate the slogan Get Your Flix Fix in it (#getyourflixfix).b. The commercial cannot exceed 30 seconds and must aim to increase the number of subscribers.c. The winner will receive a scholarship in order to highlight Netflixs support of education.

Philanthropy Events1. Collaborate with Hulu to raise money for education. (The CEO of Netflix, Reed Hastings, is very supportive of education)a. Hold a joint fundraiser with attractions and giveaways where all money raised will go toward a charity with a focus on education (i.e. the Institute of International Education).b. Promotional commercial or the event.c. After event, publicize the amount raised through emails, social media, and on the Netflix website.

2. Participate in philanthropic efforts closely aligned with the values and/or charities of interest to potential content providersa. Actively donate time, money, and other resources to charitable causes that content providers have shown interest in.b. Invite other companies to joint events for fundraising for a particular organization.c. Spread awareness for charitable organizations that content providers may be interested in over social media by starting an online fundraising source. Promote it through Facebook, Twitter, etc.

Special Events1. Hold a TED Talk with the CEO of Netflix, Reed Hastings.a. Plan out TED Talks in different venues around the country.b. The talk will address future plans, including new content that will be added and the family policy change.c. The talk will address target audiences including schools, offices, etc.

2. Allow subscribers to submit pitches for a new original Netflix Series.a. Implement a panel of judges, potentially celebrity personalities.b. The winning idea will be produced and screened exclusively online.c. A red carpet event will be held to showcase the new production.

3. Movie Screening of Netflix Original Series.a. Hold a red carpet event of a Netflix Original Series premiere with actors.b. Tickets will include an after party pass.c. Tickets will be sold to new subscribers who register by a certain date as well as to current subscribers who meet a certain standard of eligibility set forth by Netflix.

Customer Input1. Phone call surveys with included incentivea. By using systematic selecting of subscribers, they will receive a phone call to answer questions and take a short survey.b. At the end of the survey, the customers will receive an incentive such as a free one month subscription.c. After reviewing the surveys, the answers will be analyzed to address all concerns.

2. Involve customers in content decision making.a. Hold online surveys for potential new material to be added.b. Have customers email in content ideas.c. After two months of surveys, the content that received the most interest will be released.

Networking 1. Send letters of well wishes during the holidays to competing companies in order to maintain a positive image.a. Send an email to each competing company during the holidays.b. Send a gift basket to the CEO during the holidays.c. Offer a time to meet to discuss questions, concerns, or anything else that might be relevant to Netflixs relationship with competing companies.

2. Monitor companies relationships with their customers to see what they do well and what doesnt work.a. Assign employees roles to look at other customer interaction.b. Highlight what doesnt work well for them and avoid that strategy.c. Look at what works well, and find ways to improve upon these ideas in order to maintain positive brand recognition

3. Pitching to Investorsa. Putting together a list of potential investors.b. Making sure to pitch to investors who would likely be interested in working with Netflix, while also reaching out toinvestors that could be more difficult to persuade.c. Learn how investors thinkon a deeper level and anticipate what questions they will ask. This will help Netflix refine its presentation for the investors it may later target.

4. Send regards, good luck, and other resources to production companies who are about to release new material to the public (i.e. new movies, new television series, etc.)a. Create positive relationships with potential content providers by giving well wishes and support during the release and promotion of a new projectb. Propose to help sponsor an event related to a production companys newest release (i.e. a release party, photo call, etc.)c. Create social media images, announcements, and video clips wishing the company luck, serving as a promotional device for their new project

5. Ensure current content providers feel appreciated and know the length of the Netflixs thanks for their businessa. Send out yearly thank you letters and a small gift of gratitude to the companys chief staffb. Create a special event to thank content providers (i.e. a black tie dinner, themed party, etc.)c. Establish a team of employees in charge of routinely meeting with content providers to ensure everyones mutual happiness while also addressing any issues that may need to be handled

Personnel Page__________________________________________

PBV Relations is a public relations firm comprised of North Carolinas top PR professionals: Paige Hullett, Brooke Nash, and Victoria Callus. Their team is known for its transparency, loyalty, creativity, and high quality service. They are currently in business with Netflix, Inc.

Brooke Nash, a native of Massachusetts, is a driven public relations professional with a knack for detail. In her work, she strived to create strategies and tactics that would be the most advantageous to Netflix in pursuing its goal. She also worked with her partners during the creative process and helped in devising specific tactics geared toward the other publics. Brooke lived up to PBVs standard for success and worked effectively to uphold their values in her contributions.

Victoria Callus comes from Raleigh, NC. She is an innovative thinker and worked consistently to offer an optimum number of ideas for Netflix to utilize while implementing its policy changes and change in price. Victoria worked primarily as the creative force in PBVs proposal for Netflix. She worked jointly with Miss. Hullett and Miss. Nash in order to give Netflix a wide variety of interesting ideas to consider when working with each public. She prides herself on upholding PBVs promise to provide transparency, creativity, and respect.

Paige Hullett is a rising PR professional from Indianapolis. In the development of PBVs PR proposal for Netflix, Paige strived to provide of interesting and innovative ways to keep all constituents of the companys publics engaged with and loyal to the brand. She worked closely with Miss. Callus and Miss. Nashto collaborate on ideas that would be the most effective for each public. She worked diligently and accordingly with PBVs personal values.

Appendix_____________________________________________________________________________________