Table of Contents

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I.

Situational Analysis.

II.

Targeted Publics.

III.

Objectives

IV.

Messages.

V.

Strategies.

VI.

Tactics

VII.

Appendix .

Situational Analysis
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Strengths
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
Opportunities
Growing demand for online video
streaming
Advertising
Investment in new areas
Expanding newer content

Weaknesses
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

Threats
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

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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

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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

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1. OBJECTIVE ONE: CUSTOMER CONTACT
Improve customer contact with employees by 10% over the next 3 months
while policy changes are being implemented.
2. OBJECTIVE TWO: SUBSCRIBER LOYALTY
Keep 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 AFFAIRS
Maintain 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 RELATIONS
Communicate 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 CONTENT
Provide 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 RATES
Increase 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

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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

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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
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Social Media Platforms

1. 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 base
a. 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 Interaction

1. Hold a promotion deal according to the number of referrals made by current

customers
a. 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 nonsubscribers 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 Events

1. 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 providers
a. 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 Events

1. 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
a.
b.
c.

subscribers to submit pitches for a new original Netflix Series.

Implement a panel of judges, potentially celebrity personalities.
The winning idea will be produced and screened exclusively online.
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 Input

1. Phone call surveys with included incentive

a. 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 Investors
a. 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 to investors that could be
more difficult to persuade.
c. Learn how investors think on 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
project
b. 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 business
a. Send out yearly thank you letters and a small gift of gratitude to the
companys chief staff
b. 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
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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
an innovative thinker and worked
number of ideas for Netflix to
changes and change in price.
creative force in PBVs
jointly with Miss. Hullett
Netflix a wide variety of
when working with each
upholding PBVs promise
creativity, and respect.
Paige

the

Callus comes from Raleigh, NC. She is

consistently to offer an optimum
utilize while implementing its policy
Victoria worked primarily as the
proposal for Netflix. She worked
and Miss. Nash in order to give
interesting ideas to consider
public. She prides herself on
to provide transparency,

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
brand. She worked closely with Miss. Callus and Miss. Nash to
collaborate on ideas that would be the most effective for
each public. She worked diligently and accordingly with
PBVs personal values.

Appendix

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