Netflix Raises Prices – and No One Freaks Out

NETFLIX TV 150x150 Netflix Raises Prices   and No One Freaks Out

THE PR VERDICT: “A” (PR PERFECT) for Netflix.

This time they warned you – Netflix, that is. The on-demand streaming video service that scored one of the worst marketing and PR flops since the introduction of New Coke when they raised their rates in 2011. They announced a price increase for rentals last week, but this time in a way structured to keep existing customers happy – and investors, too.

You might recall Qwikster, the company’s ill-conceived DVD-only service, spun off in 2011 in the wake of a controversial and unpopular price hike that effectively doubled the cost of rentals. Subscribers rebelled and quit in droves, and Netflix reversed course, killing the service before it ever launched. It then spent much of the next year apologizing and begging customers to come back.

Clearly the company learned something from that experience. This time, Netflix moved methodically, initially raising the prospect of price increases months ago. It firmed up that news in late April with a letter to shareholders announcing a pending increase of “one or two” dollars. The final word came in an email to customers Friday – a $1 bump, but only for new customers, and no increase for existing members for two years. So far, the villagers have yet to light their torches or storm the castle.

THE PR VERDICT: “A” (PR Perfect) for Netflix, for taking the time to set appropriate expectations.

THE PR TAKEAWAY: Timing is everything – and that doesn’t always mean just picking the right moment. Netflix, looking to avoid another mass stampede of customers for the exits, wisely started telegraphing its intentions on pricing months before actually announcing the increase. This amounted to a period of test marketing, giving both Netflix subscribers and investors time to get used to the idea. Then, by grandfathering in existing customers at the current price for two years, Netflix actually won a measure of goodwill, solely becauset it set expectations of a price increase for everyone. Investors liked the news also, sending the company’s stock up on the increase.

The PRV Report Card: This Week’s Winners & Losers

 The PRV Report Card: This Weeks Winners & LosersPR WINNER OF THE WEEK: “A” (PR PERFECT) to Kevin Durant of the Oklahoma City Thunder. After weeks of bad press for the National Basketball Association, attention was gratefully turned to Durant’s MVP speech, which alone could have won him an award. Durant gave emotional thanks to his mother, Wanda Pratt, who raised two boys on her own and sometimes went without even food so that her sons wouldn’t feel the pain of want. Durant credits his mother’s determination for his championship-winning skills on the court and called her “the real MVP.” A happy Mother’s Day for Pratt, and some relief for the beleaguered NBA.

 The PRV Report Card: This Weeks Winners & LosersPR LOSER OF THE WEEK: “F” (FULL FIASCO) to the Nigerian government, whose weak response to the abduction of more than 200 schoolgirls has brought international condemnation on the African nation as it prepared to host the World Economic Forum on Africa. The girls were kidnapped on April 15 by the al Qaeda-linked terrorist group Boko Haram, whose leader has said he plans to sell them into slavery. Finally bowing to pressure, the Nigerian government this week offered a $300,000 reward for information leading to the girls’ whereabouts. Meanwhile, Boko Haram raged into another village and scooped up eight more girls. As the Voice of America noted, “[Nigeria] is the biggest economy in Africa, but authorities cannot even keep children safe in their schools.”

treygowdy The PRV Report Card: This Weeks Winners & LosersTHE PRV “THERE’S NO ‘THERE’ THERE” AWARD TO Republican Congressional officeseekers, who chose to ignore recommendations from one of their own to stop fundraising off the 2012 attacks on the US consulate in Benghazi, Libya. US Rep. Trey Gowdy (R-SC) who is heading a new (and quite partisan) House Select Committee that will review the matter yet again, urged his colleagues last week not to undermine the committee’s work with partisan appeals for funds that hype the issue. Minutes before, the National Republican Congressional Committee sent out a fundraising email doing just that.  “Help fight liberals by donating today,” it asked, and other appeals followed. So much for the Committee’s integrity.

The PRV Report Card: This Week’s Winners & Losers

Clooney Alamuddin 150x150 The PRV Report Card: This Weeks Winners & LosersPR WINNER OF THE WEEK: “A” (PR FERFECT) to George Clooney and Amal Alamuddin, who did not announce their engagement this week. It’s standard Clooney MO not to talk about personal matters, but his lack of statement or attempt to hide the engagement (Alamuddin is sporting a rather large ring) led the media to dig. Therefore, what the media spoke about most is Alamuddin’s admirable human rights work via her law practice, which explains at least part of Clooney’s attraction. As for Cloons, previously a confirmed bachelor and serial dater, Alamuddin is a departure from his last companion, former World Wrestling Entertainment star Stacy Keibler.

rick scott 1 The PRV Report Card: This Weeks Winners & LosersPR LOSER OF THE WEEK: “F” (Full Fiasco) to Florida Gov. Rick Scott, who went looking for Obamacare horror stories and instead found praise. Scott, with media in tow, visited a senior center in Boca Raton last week to warn about cuts he said the Affordable Care Act would force on a popular Medicare program. Seniors, he said, “tell me stories about how their plans are being changed, how they are losing their doctors, the coverage is changing, and so what I’m here to do is just hear your stories.” But his fear-mongering didn’t fit with what seniors reported. “Not really,” said one, asked if she’d seen changes to her coverage. “Very happy,” said another. “Completely satisified,” said a third. None of which described Scott’s reaction.

 The PRV Report Card: This Weeks Winners & LosersTHE PRV “THERE’S NO ‘THERE’ THERE” AWARD to Toronto Mayor Rob Ford. How jaded must we be that another revelation of the obstreperous mayor smoking crack cocaine — his second in less than a year — barely raises an eyebrow? This week, the Globe and Mail published photos of Ford holding what appears to be a crack pipe, while the Toronto Star posted audio of Ford, apparently inebriated, slagging off local politicians. Ford released a statement saying he’s going to take a “break” from his re-election campaign “to seek immediate help,” though he’s still refusing to go down with the ship, i.e. resign his office. The circus continues…

NBA’s Silver Is a PR Game Changer

 NBAs Silver Is a PR Game Changer

THE PR VERDICT: A (PR PERFECT) for NBA Commissioner Adam Silver.

Just three months into his tenure as commissioner of the National Basketball Association, Adam Silver was confronted with a situation that could make or break his career: how to handle leaked audio recordings of Don Sterling, owner of the Los Angeles Clippers, making racist statements.

Silver’s response was pure PR gold. On Tuesday, he shocked the sports world by imposing the maximum fine on Sterling ($2.5 million) and banning him for life from the NBA. Sterling cannot attend any NBA basketball game or appear at any Clippers facility, nor can he participate any business decision regarding the team.

At the press conference, Silver’s voice shook with emotion. “The views expressed by Mr. Sterling are deeply offensive and harmful. That they came from an NBA owner only heightens the damage and my personal outrage,” he fumed at the microphone. He also said he “wiill do everything in my power” to force Sterling to sell his interest in the team.

The punishment was swift and harsh–and universally lauded. “The conversation transcended sports,” wrote USA Today sports columnist Christine Brennan [no relation to the author of this blog]. ESPN’s J.A. Adande opined, “He took bold strides down his own path, showed an unwillingness to allow the sore of Sterling to fester. It’s a new era.”

The magnitude of Silver’s decision, quick action, and unvarnished disgust conspire to make this one of the most significant moments in basketball history.

THE PR VERDICT: “A” (PR PERFECT) for NBA Commissioner Adam Silver, who has cemented his legacy just three months into the job.

THE PR TAKEAWAY:  A good decision goes a long way. Silver’s unprecedented actions are important not just for managing the current situation, but for what they suggest about the new commissioner: this is a strong individual with a low tolerance for bad behavior, someone who will bring stability to the league. The press conference left no doubt: Adam Silver is a game changer.

The PRV Report Card: This Week’s Winners & Losers

 The PRV Report Card: This Weeks Winners & LosersPR WINNER OF THE WEEK: “A” (PR PERFECT) to Lupita Nyong’o, whose star continues to rise with this week’s announcement that she won the cover of People Magazine’s “Most Beautiful” issue. This can be attributed to Nyong’o’s obvious beauty – a welcome sign that the days when magazines shied away from putting women of color on covers are over – her Oscar-winning performance in 12 Years a Slave, and doubtless a team of PRs and managers who have kept Nyong’o in the public eye, steadily but not to the point of over-saturation. Congratulations, Team Lupita.

 The PRV Report Card: This Weeks Winners & LosersPR LOSER OF THE WEEK: “F” (FULL FIASCO) to Bryan Singer, director of X-Men: Days of Future Past. Singer pulled out of publicity appearances at last week’s WonderCon and will likely remain behind the scenes after a lawsuit was filed accusing him and three other men of sex abuse of minors. “I do not want these fictitious claims to divert ANY attention from X-Men,” Singer’s PR statement read. 20th Century Fox, which will release X-Men next month, issued a terse comment a week ago: “This is a personal matter, which Bryan Singer and his representatives are addressing separately.” Time to distance a director accused of abusing teenagers from a product marketed to teenagers.

rove The PRV Report Card: This Weeks Winners & LosersTHE PRV “THERE’S NO ‘THERE’ THERE” AWARD to Karl Rove, Bill Kristol and other Republican-Conservative strategists/pundits, for stepping in to “unskew” a New York Times poll favorable to Obamacare and Democratic Senate candidates. The Times poll, conducted with the Kaiser Family Foundation, found Democrats running ahead of or, at worst, neck and neck with GOP opponents in traditionally conservative Southern states. “Badly done,” Rove said of the poll. Kristol and the Republican National Committee were more snarky. But none, including Rove, who famously freaked when Fox News called the Presidential election for Obama two years ago, offered more than opinion to refute the poll.

PRV Report Card: This Week’s Winners & Losers

 PRV Report Card: This Week’s Winners & LosersPR WINNER OF THE WEEK: “A” (PR PERFECT) to former New York City Mayor Michael Bloomberg, for his first act post-office: taking on the formidable US National Rifle Association. Bloomberg has pledged to spend $50 million this year on gun control, a topic that Americans continue to debate though nary a week goes by without a tragic shooting incident. The former mayor’s last initiative, curbing large-size sugary drinks, incurred jokes and charges of creating a nanny state. This issue is a far better fit for his bulldog approach and financial muscle.

HomelessGoPro PRV Report Card: This Week’s Winners & LosersPR LOSER OF THE WEEK: “F” (Full Fiasco) to the Homeless GoPro project team, whose attempt to create empathy for the plight of the homeless succeeded mostly in creating enmity for themselves. The idea: give homeless people GoPro cameras to record their daily routines and interactions with the often-callous more fortunate. Though surely well-intentioned, the project comes off as exploitative, tone-deaf and not particularly helpful to those it would seek to help. As the Valleywag blog critically noted, the project says more about a tech-savvy “coding class” that needs a high-tech fad to experience empathy. “Poverty, homelessness, and inequality are bigger than any app,” they wrote. “Your tech isn’t helping.”

 PRV Report Card: This Week’s Winners & LosersTHE PRV “THERE’S NO ‘THERE’ THERE” AWARD to North Korea for its bizarre overreaction to a London hair salon that had a bit of fun at the expense of  the country’s leader Kim Jong-Un. Mo Nebbach, owner of M&M Hair Academy in Ealing, put up a poster of Kim with his characteristically closely shorn sideburns and the question “Bad Hair Day?” The next day Nebbach was visited by two apparent strongmen who demanded that the poster be removed, which Nabbach declined to do. One could be forgiven for thinking the visit a prank, but Nabbach contacted the police, only to find out that they’d already heard from the North Korean Embassy. It seems the diminutive leader’s feelings were, indeed, hurt.  Where’s Dennis Rodman when you need him?

The PRV Report Card: This Week’s Winners & Losers

 The PRV Report Card: This Weeks Winners & LosersPR WINNER OF THE WEEK: “A” (PR PERFECT) to security firm Codenomicon and Google researcher Neel Mehta, both of whom discovered the web security bug known as Heartbleed. The bug, a flaw that allows access to user information on what was thought to be safely encrypted websites and search engines, has been around for a while, but was found simultaneously by vigilant researchers Mehta and Codenomicon. All sounded the alarm, which may have circumvented breaches in the millions.

 The PRV Report Card: This Weeks Winners & LosersPR LOSER OF THE WEEK: “F” (FULL FIASCO) to Katherine Heigl, who perpetuated her image as a cranky prima donna with a lawsuit against drugstore chain Duane Reade. The store’s transgression? Tweeting a photo of her walking with two of their shopping bags. Heigl is a “highly recognized celebrity… When plaintiff chooses to endorse a product or service, she is highly selective and well compensated,” the lawsuit sniffed. In other words, as one gossip web site snarked, “Basically: Katherine Heigl don’t do no free advertising. She can’t just have her grumpy, exhausted face freely associated with some drugstore FOR FREE..” Perhaps Heigl should invest in a good mirror. Duane Reade carries them, we hear…

kimjongun The PRV Report Card: This Weeks Winners & LosersTHE PRV “THERE’S NO ‘THERE’ THERE” AWARD TO the North Korean Parliament, who this week re-elected, to no one’s surprise, dictator Kim Jong-un as head the country’s top governing agency, the National Defense Commission. Kim’s election (if that really is the right word) means he is still in control despite political turmoil in the regime and can work to consolidate power by filling leadership posts left vacant by – you guessed it – his purges. The government-run news agency called his re-election a sign of  “the unchanged will of the military and the people” to support him.

PRV Report Card: This Week’s Winners & Losers

obamacare logo  PRV Report Card: This Weeks Winners & LosersPR WINNER OF THE WEEK: “A” (PR PERFECT) to the Affordable Care Act, a.k.a. Obamacare, whose supporters, including its namesake, had reason to celebrate Monday when enrollments pushed slightly past the original sign-up target of 7 million. The nonpartisan Congressional Budget Office projected that target for initial sign-up period through March 31. Despite a horribly marred start and with withering opposition at every turn, the mandated healthcare program saw sign-ups somehow make their numbers. And while public opinion is still hardly enthusiastic, one poll did find for the first time that public support for the healthcare law surpassed opposition. Perhaps the rally will prompt lukewarm supporters to stop apologizing and start cheering.

  PRV Report Card: This Weeks Winners & LosersPR LOSER OF THE WEEK: “F” (FULL FIASCO) to General Motors’ chief executive Mary Barra, for a defense statement best summed up by “I don’t know.” As the head of GM faced a House subcommittee investigating what the car company knew and when regarding flaws that led to numerous deaths and injuries, Barra’s responses infuriated senators and the families of the deceased alike. PR is in freefall, and GM is still recalling millions of cars and facing possible criminal charges. In leaving Barra to claim ignorance or hang herself and her company, GM’s legal and PR teams register a complete fail.

  PRV Report Card: This Weeks Winners & LosersTHE PRV “THERE’S NO ‘THERE’ THERE” AWARD to Britain’s Daily Mail and Daily Telegraph, whose editorial boards told a parliamentary science committee they believe humans are negatively impacting global climate conditions. Really? That’s rather confusing considering, as the committee chairman put it, “some papers regularly give a platform to lobby groups or indeed conspiracy theorists – many not even qualified scientists – who pooh-pooh the evidence and attack UK climate scientists.” We are shocked, shocked, to find out that publications, looking to increase readership, might take one view in their papers while believing the exact opposite. Yawn.

The PRV Report Card: This Week’s Winners & Losers

sorryloss The PRV Report Card: This Weeks Winners & LosersPR WINNER OF THE WEEK: “A” (PR PERFECT) to counter-protesters in Kansas City, Missouri, who responded last week with kindness to the hate-mongering Westboro Baptist Church. Members of the WBC, whose founder Fred Phelps died last week, brought their placard-ridden message of intolerance and hate to a Lorde concert last Friday. Across the street, though, a group responded with their own placard: “Sorry for your loss.” The sign wasn’t meant to antagonize, said Megan Coleman, who helped make it. They just wanted to send a positive message. Sadly and predictably, the fringe group’s members refused to acknowledge the sentiment – but everyone else took it to heart.

 The PRV Report Card: This Weeks Winners & LosersPR LOSER OF THE WEEK: “F” (FULL FIASCO) for Princeton University, for their unfortunate association with Susan Patton, better known as “The Princeton Mom.” Patton, a Princeton alum, ruffled many a feminist feather last year when she urged female college students to focus on finding a husband. Her words of wisdom this year? If women get drunk and are sexually assaulted, it’s on them. A letter from the faculty disavowing Patton has done little to dislodge the moniker, linking Patton and her opinions to her alma mater. Harvard must be wiping sweat from its proverbial brow over Patton’s choice of school.

 The PRV Report Card: This Weeks Winners & LosersTHE PRV “THERE’S NO ‘THERE’ THERE” AWARD to Gwyneth Paltrow and her soon-to-be ex, Chris Martin of Coldplay. In their inimitable, ethereal way, the duo announced their  “conscious uncoupling” — i.e. divorce — via Paltrow’s web site, GOOP. To be fair, the declaration was pure Paltrow; as usual, poor Martin just seemed to be along for the magic carpet ride. While GOOP did crash after the (un)couple’s post went live, the announcement primarily served to reinforce the perception of Paltrow as a new age-y twit whose experiences transcend the more pedestrian lives led by the rest of us. As for Martin, he’ll get PR props for steering clear of the woo and letting us all get to know him better during his upcoming gig as a judge on The Voice.

The PRV 2013 Final Grade: And the “A” Goes to…

 The PRV 2013 Final Grade: And the A Goes to...THE PR VERDICT’S “A” (PR PERFECT) grade for 2013 goes to Pope Francis, the Argentinian priest who appears to be single-handedly revamping the priorities – and image – of the Catholic Church.

What a difference a year makes. The church was in chaos in February when Pope Benedict XVI resigned the papacy – something not done in over 600 years. Benedict cited advanced age, though the media speculated his decision was linked to an alleged secret gay network within the Vatican and/or depression after his personal assistant leaked confidential information to the media.

Enter Jorge Mario Bergoglio, the first Latin American and first Jesuit priest to be named pope. He was an upstart from the beginning: standing to accept his cardinals’ congratulations instead of sitting on the papal throne; sporting a simple white cassock at his first public appearance; and becoming the first Pope Francis, a name he chose to honor St. Francis of Assisi, himself known for his dedication to the poor.

Pope Francis has sent a consistent message to his flock: get back to basics. On Easter, he bathed and kissed the feet of a group that included women and Muslims. On his first trip official trip abroad, he carried his own bag and insisted on limited security. He recently issued a blueprint for the church that denounced “the idolatry of money” and urged Catholics to stop obsessing over issues like same-sex marriage and contraception. Both Time Magazine and The Advocate, a gay and lesbian publication, named him “Person of the Year.”

THE PR TAKEAWAY: If you can’t reinvent, reinvigorate. No pope can rewrite the Old Testament, but he can take the church in a new direction. It’s no secret the Catholic Church – sullied for more than a decade with child-molestation scandals and a dwindling base – desperately needed a leader who could help close old wounds and inspire new hope. Pope Francis has all the  ingredients for great PR: conviction of his beliefs, consistent messaging, and a personality brimming with charm and enthusiasm. For the Catholic church’s PR, Pope Francis is a nothing short of a godsend.