Crisis Plan
Crisis Plan
Crisis Plan
Prepared By:
Aziz Diaby, Nicole Galasso, Sabrina Khachi, Aaron Gyllenhaal, and Caitlin
Zientara
Table of Contents
Introduction………………………………………………………………………….3
Publics/Stakeholders……………………………………..………………………….6-7
Media Outlets…………………………………………………..……………………9-10
Key Messages………………………………………………………………………16-17
Organizational Background…………………………………………………………..18
References…………………………………………………………………………….20
Introduction
The crisis communication team’s mission is to continually monitor the internal and external
environment surrounding Netflix for threats to Netflix’s reputation. In the event that a crisis
arises, our team will be able to mitigate and minimize the effects of it. These efforts will be
enacted with the intent of allowing Netflix to continue optimal service to our employees,
customers, investors, partners, and content suppliers.
A crisis is unpredictable but not unexpected. Crises have the potential to create negative and
undesirable outcomes for an organization that usually result in financial losses. A crisis
management plan (CMP) seeks to prevent or lessen the negative outcomes of a crisis and thereby
protect the organization, stakeholders, and industry from harm (Coombs, 2015).
While this crisis communication plan only accounts for part of the CMP, this plan’s goal is to
allow rapid and accurate communication with Netflix’s internal and external audiences in the
time of a crisis. This will be done through careful planning, detailed templates for responses, and
an up-to-date list of jobs for each member of our team to complete when Netflix is faced with a
crisis. While each individual crisis may be unpredictable, this plan will attempt to lessen the
panic and uncertainty once a crisis does occur so all energy can be focused on remedying the
crisis in a timely manner.
The identification of potential crises is essential to planning Netflix’s response. While the list of
potential crises is infinite, crises can be broken up into the following 11 different crisis types
(Coombs, 2015).
Unexpected Loss of Key CEO steps down (medium CEO unexpectedly dies (high
Leadership impact) impact)
Human-error Product X X
Harm
Crisis manager (CMT Team Leader): in charge of/approves crisis plans. Provides overall
leadership to CMT.
Crisis Management Advisor : supervise and coordinate all necessary support in CMT. Create
and manage crisis center (if needed)
Legal Advisor: provide input directly relating to legal matters in relation to company and crisis
Human Resource Advisor: maintains current and accessible contact information for all major
employees, contract employees, and responders
Public Affairs Advisor: focus on public perception of organization, participates and provides
input at all stages of crisis plan
Financial Officer: Coaches CMT on the financial prospects of the organization and possible
fiscal outcomes
Key Publics
When faced with a crisis, each of Netflix’s publics will need to be informed of the details and
potential impact of the crisis through a lens that is specific to the way they utilize Netflix. That
way, each public can know exactly how the crisis affects them and the steps that Netflix is taking
to remedy the situation.
Netflix subscribers: Netflix subscribers will be sent an email to the account used to register for a
Netflix subscription. The email will provide Netflix subscribers with a guarantee of Netflix’s
continued commitment to providing quality content for the subscribers to enjoy. If subscribers
are directly affected by the crisis, then the ramifications of the crisis and the plan to remedy the
crisis will be included in the email.
Netflix employees: In order for Netflix to function efficiently in a crisis, relevant employees
need to be kept up to date throughout every stage of it. Employees whose jobs are not directly
affected by the crisis will receive an email providing them with a brief outline of the crisis, how
it happened, and how the plan to remedy it will affect daily operations within the organization.
Key Stakeholders
Netflix has a market value of over $100 billion (La Monica, 2018). Due to their high market
value, there are many groups that have a financial interest in Netflix. In the event of a crisis,
stakeholders must be initially notified of the financial impact on Netflix. Each stakeholder group
possesses interest in a different part of Netflix, so the information shared will need to be tailored
to each group. Employees and subscribers are both stakeholders as well, and communication for
them will be conducted as it is laid out above.
Advertisers: Advertisers will be notified initially by a phone call and then provided with updates
via email if necessary. In the phone call, the advertiser will be informed of the crisis, the
potential impacts on advertising revenue, and the plan to fix it. If the negative impact has
longevity on the financial well being of Netflix, advertisers will be informed of the financial
losses that will be incurred on their part.
Media: Due to large prevalence within society, the media holds great interest in Netflix’s
operations. Once crisis hits, we can use the media to our advantage. If dealt with correct, media
can be used as a tool for information dissemination. In addition, media frames the narrative of a
crisis, so positive interactions with the media are necessary in order to maintain positive public
perception of Netflix. The initial response to the media must be no more than five hours after the
crisis is known. This initial contact will be prioritized to media outlets with large amounts of
reach that have a maintained positive relationship with Netflix. In these interactions, Netflix
must acknowledge any mistakes made and, while only conveying accurate information, make the
effects of the crisis seem under control. If the public becomes alarmed, then the crisis may
worsen. The main focus with the media should be that Netflix will continue to operate and
provide quality content to all subscribers.
Companies who own shows and movies: The main concern with the companies that allow
Netflix to stream their content is the continued viewership of their shows and movies. Thus, this
will be the primary theme in the initial correspondence with these companies. We will also lay
out the general reason for the crisis and whether we anticipate and drop in either overall
viewership of Netflix or the viewership of the media owned by the company. If losses are
predicted, then we will stay in frequent contact with these companies in order to stay in business
with them in the future.
Prevention:
While crises are inevitable, many of them are preventable, or at least easily controllable, if
Netflix takes the right steps in advance. The most productive ways to prevent a crisis from
occurring are environmental scanning and ensuring a strong reputation with the general public.
-Environmental Scanning
Effective environmental scanning monitors a diverse array of sites for early signs of a crisis. The
following sites should be observed consistently in case of a drastic increase in the negative
mentions of Netflix:
Social Media: Facebook, Twitter, Instagram, Tumblr, YouTube, Pinterest, and Reddit
Traditional Media: print newspapers, online newspapers, print magazines, online magazines,
movie review websites, and television review websites
Miscellaneous: Advertising revenue and Netflix's internal movie/show ratings
-Reputation
Reputation has the ability to lessen the impact of a crisis. If the public believes an organization to
be reputable, they are more likely to forgive an error. Thus, reputation management is key to
preventing a crisis. Reputation management is efforts made by an organization with the goal of
increasing the stakeholders’ positive sentiment toward the organization.
One increasingly relevant way to manage reputation is through corporate social responsibility
(CSR). CSR is actions taken by an organization’s management with the goal of the betterment of
society as a whole (Combs, 2015). In 2016, Netflix launched a new philanthropy that would give
$100 million toward the education of underprivileged youth (Rubin, 2016). This initiative boosts
Netflix’s credibility and will cause the general public to sympathize with them if a crisis does
occur.
Preparation:
A prepared crisis team is essential for de-escalating a crisis quickly. In order to be prepared for a
crisis, an organization needs to complete these six steps, “ (1) [D]iagnosing vulnerabilities, (2)
assessing crisis types, (3) selecting and training a crisis management team, (4) selecting and
training a spokesperson, (5) developing a crisis management plan (CMP), and (6) reviewing the
crisis communication system” (Coombs, 2015). The first two steps have already been completed
in this plan and the last two steps will be addressed once a full crisis management plan is
developed. Therefore, the two ways to focus on the preparation for a crisis are selecting and
training a crisis management team and selecting and training a spokesperson.
Selecting and training a spokesperson: The spokesperson performs the most essential role in the
crisis team. Crises are perceptual, and if the spokesperson cannot create a positive perception
with the media surrounding a crisis, then the crisis will only grow. A spokesperson must be able
to quickly craft a response to each question from the media while simultaneously giving only
accurate information. The spokesperson needs to be knowledgeable about all parts of Netflix
because they need to be prepared for every question that the media asks them. Another important
trait of a spokesperson is appearing calm while under pressure. If a spokesperson appears
flustered, their credibility immediately is reduced. Lastly, it is essential that there is more than
one trained spokesperson ready to face the media. Since the spokesperson for this team has
already been selected, the training must focus on factual knowledge of the company, practice
answering tough questions, and appearing calm even if they are flustered.
Media Outlets
The chart below includes local and national media outlets contacts and influencers who are likely
to cover Netflix’s news in the event of a crisis.
News
Outlet/Influenc
ers Contact Phone Email
Due to social media’s ability to rapidly spread information, it must be monitored constantly.
Various websites such as Meltwater and NUVI are able to monitor a variety of social media
sites. If an increase in the mentions of Netflix occurs, then an alert will be sent to the crisis
manager advisor and public affairs advisor. These team members will be responsible for figuring
out the reason for the influx of mentions.
Netflix is active on a multitude of different social media platforms. If a crisis is occurring, the
social media platforms that will be relied on to disseminate information are Twitter, Facebook,
and Instagram. This is due to the larger reach of these sites in comparison to others.
Twitter: https://twitter.com/netflix
The main Netflix Twitter account has nearly 5 million followers. Twitter allows for retweets,
which aids in the spread of Netflix’s message. Once a crisis occurs, within 5 hours Netflix will
release an official statement on Twitter. Due to the limit of 280 characters, the statement will
likely be posted as a picture of the text. Once a media briefing is held, it will be available for
streaming on Twitter as it is happening and after it happens through Periscope. After the briefing,
another statement will be released summarizing the information shared by the spokesperson.
Facebook: https://www.facebook.com/netflixus/
The official Netflix Facebook page has over 45 million followers, making it Netflix’s most
popular social media site. Facebook allows for live streaming, video content, and text content.
There is no character limit, making the release of public statements easy. Facebook Live
provides the ability to live stream a press conference and the ability to post videos gives a
channel to release an apology video if necessary. Facebook also allows sharing of posts, which
can increase the social reach of each post. Lastly, the reaction function on Facebook will provide
a cursory look at how the public is responding to the post.
Instagram: https://www.instagram.com/netflix/
The Netflix Instagram account has over 7 million followers. Due to limitations with video or live
streaming, Instagram will only be used to post statements. Similarly to Twitter, a picture of the
text of the public statement will be uploaded rather than the text itself.
The following social media sites will never be the primary source of communication from
Netflix during a crisis. Information posted on these sites will be copied from at least one of the
main three social media accounts.
Pinterest: https://www.pinterest.com/netflix/
Due to the purpose this website serves and its structure, there will be no crisis communication
using this channel unless the crisis stems from Pinterest.
Tumblr: http://netflix.tumblr.com/
The statements and videos posted on Twitter will be cross-posted onto Tumblr. Unless the crisis
stems from Tumblr, there will be no further usage of this site for crisis communication.
YouTube: https://www.youtube.com/channel/UCWOA1ZGywLbqmigxE4Qlvuw
Due to YouTube being a video streaming website, potential uses for crisis communication are
limited. The only times YouTube will be used for crisis communication will be to upload the
video from Twitter of the spokesperson during the media briefing or to cross- post an apology
video.
Reddit: https://www.reddit.com/r/netflix/
Since Reddit is a forum-based website, uses for crisis communication are limited. While Netflix
does not have an established account, they do have an official subreddit. Here, people can post
almost anything they want about Netflix, with most of the content focusing on Netflix original
content and questions about Netflix. The only time this channel will be used is to respond to
questions and concerns of Netflix users during a crisis.
Expert:
External:
Below is a checklist that needs to be completed for any crisis that Netflix may endure. This
checklist will provide employees with a list of who to contact during a crisis, keep a record of
what happened, and record what is being done to remedy the crisis. Once Netflix returns to
normality it is important for the crisis management team to review this checklist to see what
happened, how to prevent upcoming crises, and how to improve crisis response.
What happened?
Where?
When?
Cause?
Who is involved?
Activate crisis
management
Internal communication
updated
Notify CEO
Notify security
Notify legal
Notify engineering
Notify stakeholders
Notify business
development
Assign spokesperson
Number of deaths
Number of injuries
Extent of damage
Names of deceased
Names of injured
Emergency officials at
site?
Depending on level of
crisis get message
approved before sending
out
Hold a crisis
management meeting to
review the crisis and the
actions that occurred
A channel is a medium through which a message is transmitted to its intended audience. Quality
communication with your audiences relies on the selection of appropriate channels of
communication. Before sending a message through a particular communication channel, the
following factors must be taken into consideration:
1. Which channels are most appropriate for the message?
There are many channel options that can be part of your crisis communication plan:
● Newspapers
● Television
● Radio
● Websites & blogs
● Social media
● Community meetings & forums
● Press conferences
● Other sources
Key Messages
Crisis:
Stakeholder:
Concern:
We are taking this matter ____ is conducting the Our main concern is the
seriously, and it will be investigation and Netflix is well being of our customers
subjected to a strict and copororating fully and staff
thorough assessment
We are actively working All questions should be Our support and thoughts
towards a solution directed to ____ are with those involved in
this event / *insert
appropriate emotion*
(Logo)
Date Contact: (Your Name & Organization)
FOR IMMEDIATE RELEASE Phone: (Contact Phone Number)
Email: (Contact Email Address)
More Information:
About Netflix Inc:
For more information, please contact (name) at (phone number), or through email at (email
address). More information about the organization can be found at (website).
###
Organizational Background
In 1997, software engineers Marc Randolph and Reed Hastings began to work on an idea for a
website that allowed customers to rent and return DVDs directly from their homes. Their
website, Netflix, was launched in April of 1998, with a traditional pay per rental format. Later,
this would be replaced with a monthly subscription fee that allowed unlimited content rental and
no late fees. Since its launch in 1998, Netflix has completely revolutionized the television and
movie industry. Netflix became a trailblazer in online television and movie streaming, as well as
creating thousands of original shows and movies. The content giant now has over 117 million
members globally and offers 140 million hours of original and licensed content.
The two key ways to ensure that this plan will work when a crisis occurs are practice and
revision.
Practice: One of the key parts of training a crisis team is practice. If the team has no practice
using the plan, then once a crisis hits, the response will be uncoordinated and inefficient. At
some point during the first week of every quarter throughout the year, the entire crisis team will
meet and practice using the plan. They will receive a mock crisis and will have to respond to it.
The crises will vary, with some already being addressed in this plan and others not. Throughout
this test, every member will be taking notes on what goes right and wrong. Once the test is over,
the team will meet again and discuss their performance.
Coombs, W. T. (2015). Ongoing Crisis Communication (4th ed.). Thousand Oaks, CA: SAGE
Publications.
La Monica, P. R. (2018, January 23). Netflix joins the exclusive $100 billion club. Retrieved
from http://money.cnn.com/2018/01/23/investing/netflix-100-billion-market-
value/index.html
Rubin, B. F. (2016, January 13). Netflix boss queues up $100M to get your kids better educated.
valleys-growing-list-of-major-givers/