Netflix Rents PR Trouble in Canada
They flubbed their lines on this PR event.
Movie rental giant Netflix rarely makes a business or PR misstep, but when they do, sheesh. It seems the company hired some actors to pad its Canadian launch, and with that they rented some nasty PR.
Netflix Inc. tried to bring a touch of Hollywood to its Canada debut Wednesday only to wind up apologizing for a botched publicity stunt.
Things backfired at a Toronto street celebration after reporters discovered that actors hired by the Netflix had been given written instructions to give media interviews gushing about the video subscription service’s arrival in Canada.
The actors also were urged to fill a variety of stereotypical roles, including “mothers, film buffs, tech geeks, couch potatoes,” according to the one-page handout given to them.
Netflix never intended to mislead reporters, company spokesman Steve Swasey said. He attributed the mix-up to the bureaucratic hoops that Netflix had to jump through to get a permit to close an entire street for Wednesday’s event.
To qualify for the permit, Swasey said Netflix decided to film a fake documentary. That led to the hiring of a handful of actors who were only supposed to help drum up enthusiasm and attract a crowd before CEO Reed Hastings arrived on the scene. Swasey wasn’t sure who decided the actors should give media interviews under false pretenses.
“We are embarrassed,” Swasey said. “We regret that this put on a blemish on what should have been perfect day for Netflix.”
via The Associated Press: Netflix hires actors to pose as its Canada fans.
Pretty careless–and very stupid if it was done on purpose. Haven’t heard if anyone was canned over this–yet.
But, you have to give them points for admitting their mistake with alacrity and contrition. Mistakes owned-up to quickly are a matter of forgiveness. Drag your feet, dissemble or lie and it becomes a matter of low credibility or mistrust.
Remember: when you screw up, admit it and the story usually goes away. Hide it, cover it up, obfuscate…you may find yourself Gone with the Wind.
And what company wants to rent that?
Best PR Advice…Ever
The Cover-Up was Worse Than the Crime
“When you’re in the mix of these really obtuse situations where nobody really knows the facts, in some sense the facts are less important than your posture toward the facts,” says Mr. Reeves, the former Merrill Lynch media relations executive.
“People are reasonable. They know companies make mistakes, and people will forgive an honest mistake. They will not forgive a dishonest cover-up.”
via P.R. Missteps Fueled Fiascos at BP, Toyota and Goldman – NYTimes.com.
The Lawyer Vs. P.R.
Credit: http://pharmamkting.blogspot.com
This week we’ve looked at some of the most wretched P.R. crises, spurred by a comprehensive article in the New York Times. Today, we look at the fight behind the scenes to minimize P.R. and legal damage:
In times of crisis, communications professionals and lawyers often pursue conflicting agendas. Communications strategists are inclined to mollify public anger with expressions of concern, while lawyers warn that contrition can be construed as admissions of guilt in potentially expensive lawsuits.
For BP, this tension burst into view in May, when executives went to Capitol Hill with officials from two of its contractors: Transocean, which owned the offshore rig that exploded, and Halliburton, which aided BP in drilling. Executives from the three companies each disowned culpability while pointing fingers at one another.
“What that screamed is the lawyers are in control,” says Mr. Reeves. “All it did was get everybody all the more peeved at them.”
It’s a tough call. Legal is trying to keep you out of court–or worse jail. P.R. is trying to save your credibility, and by extension your business. Based on my experience, I believe honesty is the best policy. Transparency is critical.
Of course, I also believe BP would have fired me on the spot, because I would’ve recommended we throw ourselves on the mercy of public opinion–ala Tylenol.
If there is no doubt mistakes were made–if you’re caught dead to rights–then your appeal to the Court of Public Opinion (not to be confused with The People’s Court, though a bailiff named Rusty is always cool) should go something like this:
Scenario: ABC Company has been accidentally dumping factory greywater into river tributaries that feed stock ponds. There’s no wiggle room–they’re busted on 60 Minutes.
Here’s the statement I would recommend:
“ABC Company admits and takes full responsibility for our mistake. We take our commitment to the environment very seriously. This event has not only been embarrassing but an inexcusable violation of the trust the public has bestowed upon us. Our usually reliable safeguards and policies were not followed and we are taking measures to discipline those who caused this failure. We will also work with the community to undertake reasonable measures to clean up the leaked water and make whole those damaged economically by this incident. It is my sincere hope that we can regain the trust of our community and strengthen that trust as we move forward. Thank you. My chief engineer and I will be happy to take questions about our next steps.”
I can hear some of you now: “Dude, that’s nuts! Never admit guilt!” True, you have to protect your company and its assets; this is a statement of last resort. However, plenty of people will disagree with our strategy of telling the truth even as a last resort.
To that we say this: if you’re caught by 60 Minutes, do you really want to be the guy sweating under the grueling geriatric grilling of Mike Wallace? You won’t win.
Mistakes owned-up to quickly are a matter of forgiveness. Drag your feet, dissemble or lie and it becomes a matter of corruption, criminality or mistrust. Ducking or covering up and apologizing only after you have nowhere else to hide–or under court order–will effectively destroy your reputation and cost you in money, energy, time and brand equity.
In another life I was Vice President of a $70 million healthcare management firm. We made some mistakes from time to time. As a rule, we told the truth and did our best to make it right (at least anytime I had any say in it). It wasn’t always profitable. I wasn’t always popular with the management team. I have no regrets about that policy.
I have no idea if there were intramural arguments between BP legal and P.R.–but if there were, it looks like legal won. Hmm. After being obstinate, disingenuous and a total PR failure, you have to wonder what BP’s management thinks in the dark midnights of their souls. Do they admit–if only to themselves–that they made a bad situation far worse?
Did the money they thought they were saving by reducing lawsuits outweigh the complete meltdown of their brand–thus hindering future profits? Or was the fact that their profits would far outweigh relative short-term damages the controlling factor?
Did they stay up nights worrying about this? I doubt it.
