What you’ll read:
- Netflix is a powerhouse, but has had its fair share of con controversy
- Learn from the streaming brand and respond carefully, understand your brand image, plan in advance for controversial products, and find ways to improve.
In October 2021, Netflix found itself embroiled in controversy over Dave Chappelle’s “The Closer,” a comedy special many viewers considered transphobic. Subscribers took to social media to complain, news outlets publicized the issue, and Netflix employees staged a walkout in protest. And yet, on Netflix’s quarterly earnings call just one week later, no one raised the matter. Several news cycles later, Netflix quietly settled its internal disputes and pushed forward.
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Perhaps we shouldn’t be surprised —if nothing else, Netflix excels at navigating through a scandal. The company has addressed an onslaught of criticism throughout its 24-year history, enough to fill an extensive Wikipedia page. Thanks to this experience, it generally knows when to take action and when to hold its ground without losing a significant number of subscribers in either situation. While Netflix does make mistakes along the way — as it readily admits — the streaming giant is a fascinating case study in maintaining one’s brand image while under fire.
Don’t: Rush into saying the wrong thing
Whenever a controversy occurs, it’s important to respond quickly but never carelessly. Brand leaders and marketers need to craft the right message and deliver it consistently across all channels. What’s more, the response needs to consider all parties — not just customers or the press, but your own employees.
Netflix co-CEO Ted Sarandos learned this the hard way when he posted an internal email about The Closer, stating his “strong belief” that on-screen content didn’t translate into real-world harm. While this was a gross oversimplification, the damage was done — he alienated Netflix’s trans employees, who leaked the email to the public and staged a walkout in protest. Sarandos eventually needed to follow up with further apologies and clarifications, which he could have avoided with a bit of foresight.
Before releasing any communication, it’s important to read the room and listen to perspectives among your entire audience. Doing so can help you better understand the problem, find solutions, and communicate next steps to everyone involved.
Do: Understand your brand image
Netflix is in the unusual and unenviable position of offering a product to everyone. To compete with traditional television networks, it curates an enormous range of content that few streaming services can match. The downside is that with so many creative perspectives, it’s inevitable that some creators or their work will come into conflict with Netflix’s brand values. In response, Netflix pays very close attention to audience reactions and its brand image whenever a controversy occurs.
It’s worth remembering that brand values and brand image are different things. Values are the principles that guide your actions, applying not just to products but how you treat staff, interact with customers, and position your business in relation to social issues. On the other hand, brand image is how audiences perceive your company. Image reflects your customer support initiatives, social media interactions, and overall satisfaction with a service.
As noted by Cory Schröder, Netflix strikes a careful balance to ensure its values and image are never in conflict. For example, the company’s stated values include courage, inclusion, integrity, impact, innovation, and responsibility. Meanwhile, an analysis of Netflix’s brand image using the Social Brand Personality Index found that customers view Netflix as a “platform for light entertainment, self-care, and discovering new things.” Since these elements are not in conflict, Netflix has a certain amount of leeway in navigating a crisis.
To be clear, this lack of conflict doesn’t mean Netflix has no moral obligation regarding content. It simply helps businesses understand whether a given course of action will keep them in good standing with their audience. For example, since Netflix does not have a reputation for dishonesty, it can authentically reaffirm its commitment to inclusivity. However, its commitment to integrity and responsibility also meant Netflix had to admit fault when its marketing materials for Cuties — developed without the director’s input — were accused of sexualizing the film’s child actors.
Don’t: Wait for the crisis to hit
Who could have predicted that Dave Chappelle’s comedy routine would be controversial? Probably Netflix, after Chappelle’s last three specials prompted similar reactions. While The Closer drew more attention than usual, Netflix should never have been surprised by the response. It certainly shouldn’t have been scrambling to address the issue after investing $24.1 million in exclusive streaming rights.
Netflix is certainly within its rights to broadcast whatever content it chooses, but if you know a topic will be controversial, it’s vital to have a plan in advance. If a crisis does unfold, that helps you deliver the right message quickly before it becomes lost in the noise. In The Closer’s case, advance planning also would have been an excellent opportunity to seek out perspectives of trans employees, potentially avoiding the walkout altogether.
Do: Find ways to improve
While Netflix has survived multiple controversies over the years, it hasn’t emerged unscathed. The Closer ended up alienating other comedians on Netflix’s platform, such as Hannah Gadsby. Its poorly thought-out marketing materials for Cuties raised the specter of government review of its content. Overcoming one crisis is never a promise you will survive the next, especially when you court them as frequently as Netflix.
If your business is constantly reacting to outrage and anger, if nothing else, it’s time to self-reflect on what you can do to improve the situation. Even Netflix’s reputation can wear down eventually, especially when its talent can turn to competing platforms. Sooner or later, every brand can suffer damage beyond repair, so seek out ways to improve your standing before that happens.