CCP Part 2 - Com 358
CCP Part 2 - Com 358
CCP Part 2 - Com 358
The crisis is an organizational misdeed due to AWS announcing they are no longer hosting
Netflix on its servers right before the drop of highly anticipated Netflix shows. This is a
preventable cluster. The most important publics and stakeholders for this situation are the board
members, partners, employees, and the media.
Crisis Response
Prevent harm to stakeholders, secure relationships with Google Cloud and IBM Cloud, reduce
the amount of negative media coverage, and persuade those who unsubscribed to resubscribe
effectively helping to raise the stock price.
Crisis Response Strategy
Strategy
Messaging
Netflix understands the stressful nature of the situation and wants to ensure its subscribers and
other stakeholders that we are working diligently to rectify the situation so that no one's viewing
experience changes. Netflix prioritizes their viewers and other stakeholders first and are
committed to swiftly rectifying the situation.
Amazon Web Services (AWS) has been using their servers to host and deliver Netflix’s content
since 2008. Effective January 2023, AWS will no longer host Netflix’s content on their servers,
according to AWS spokespeople. The New York Times released an article shortly after,
implying that Netflix will have to shut down streaming in certain countries. The article
frightened many of Netflix’s subscribers and other key stakeholders, prompting Netflix to
quickly act and begin talks with other server companies. Company CEO Reed Hastings shared a
statement that reads “Netflix’s top priority is to provide its subscribers with the best quality
viewing experience possible, despite any adversity the organization may face. Netflix is doing
anything and everything possible to ensure that streaming stays up and running everywhere”.
Netflix understands the frustration from subscribers and other stakeholders as there are many
highly anticipated shows and movies being released in the coming weeks. Therefore Netflix is
working diligently to secure relationships with Google Cloud and IBM Cloud to be server hosts
moving forward. Netflix intends to make a long term deal to avoid this situation in the future.
We also intend to open lines of communication effective immediately with all countries that
stream Netflix to ensure that streaming does not shut off anywhere.
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Key Messages
1. Netflix is taking proactive crisis mitigation steps by talking with Google Cloud and IBM
Cloud to serve as potential replacements for AWS.
a. While neither company is technically as large as AWS, they both have similar
reach and serve as the best tangible solution to finding new servers.
2. Netflix is looking to make Google Cloud or IBM Cloud permanent replacements for
AWS
a. Netflix wants to avoid a situation like this in the future, therefore they intend to
lock down either company to a long term deal.
3. Netflix has opened lines of communication with every country that streams it
a. Netflix wants to ensure that streaming will stay up everywhere.
b. Netflix understands the financial hit they will take if they are forced to shut down
streaming anywhere it is currently available.
Social Media Strategy
Instagram
Regarding the crisis, Netflix will post an Instagram post with a statement addressing the crisis.
The post will explain what the crisis is and how Netflix is trying to resolve the problem.
Instagram posts typically include visual aids and emojis, making the social media platform more
informal. However, in the case of this crisis, the post will solely be the statement.
Statement: “We apologize for the inconvenience. Netflix’s top priority is to provide its
subscribers with the best quality viewing experience possible, despite any adversity the
organization may face. Netflix is doing anything and everything possible to ensure that
streaming stays up and running everywhere”
Caption: CEO of Netflix Reed Hastings and the Netflix team is committed to ensuring that all
streaming will be available.
Twitter
Netflix will also post a tweet on Twitter that addresses the crisis. Twitter is a more informal
social media and targets a younger audience. The Netflix team should be responsive to the
replies and reassure the public that the crisis is being addressed. This will theoretically ease some
of the negative feedback and allow time for Netflix to fix the crisis without drastic backlash.
Tweet:
“We apologize for the inconvenience. Netflix’s top priority is to provide its subscribers with the
best quality viewing experience possible, despite any adversity the organization may face.
Netflix is doing anything and everything possible to ensure that streaming stays up and running
everywhere”
Facebook
A Facebook post will also be made. Facebook is able to reach a large audience and is used to to
inform the public with information such as addressing a crisis. The Facebook statement will be
the same as the Twitter and Instagram statement. This is to ensure consistency in the statement
and posts.
Media List
We’d first like to thank the members of the national press for being here today. Most of you are
aware of the Amazon Web Services situation that recently came to light. If you are unaware,
Amazon Web Services (or AWS) is the company that owns the servers which host and deliver
Netflix’s content. Earlier this month, AWS stated that they will no longer host Netflix’s content
on their servers, which will begin effective January 2023. This news came as a shock to Netflix,
as we remained unaware of any changes up until that point. Shortly after AWS released their
statement, the New York Times released an article insinuating that Netflix will be forced to shut
off streaming in several countries. The article caught traction which understandably frightened
many of our subscribers. Netflix takes the implications of this article very seriously and is
committed to not letting them become reality. Netflix CEO Reed Hastings could not be here
today, but shared the following statement regarding the current situation. “Netflix’s top priority
is to provide its subscribers with the best quality viewing experience possible, despite any
adversity the organization may face. Netflix is doing anything and everything possible to ensure
that streaming stays up and running everywhere”. With that being said, Netflix is currently in
talks with Google Cloud and IBM Cloud as potential replacements for Amazon Web Services.
Both of these companies have similar reach and global availability as AWS, making both
companies very suitable options for a replacement. We are not looking for either of these
companies to be temporary replacements. Netflix is committed to sealing a long term deal with
either sutor to ensure that a situation like this never arises again. Finally, we have established
open lines of communication with every country where Netflix is available to ensure that
streaming stays up and running, with the exception of Russia and Ukraine. Netflix understands
the stressful nature of this situation as there are many anticipated shows being released in the
coming weeks on the streaming platform. We want to ensure Netflix subscribers that they will
still be able to stream all of their favorite Netflix shows and movies the same way they always
have. We also want to ensure Netflix’s wonderful team of employees that we are confident in the
security and safety of everyone's jobs. Thank you.