When a Policy Change Becomes a PR Issue
Just a few years ago, Netflix faced a communications challenge that many brands eventually encounter when they changed a policy that customers had grown accustomed to.
In June 2023, Netflix made the move to begin limiting account sharing outside a subscriber’s household in the U.S. This turned a common customer behavior into a much broader conversation around the platform and its pricing, access and the relationship they have with users.
Upon announcement of the changes, Netflix users took to social media to call out the new policy and share their concerns. With over 100 million households affected by the switch at the time, it was no surprise that the reaction was strong and that it left a bad taste in many user’s mouths.
It also didn’t help that the initial announcement of the password crackdown was called an accident according to Netflix. Also, the response to the media about the issue was unclear.
While it’s understandable for Netflix to change its approach to encourage subscriptions, the platform did previously make password sharing a part of its marketing, tweeting “Love is sharing a password,” back in 2017.
The internet has a long memory and this showed it. As policies change, audiences are going to look back and resurface past messaging, even if just a social post, because it contradicts their new direction.
Netflix ultimately moved forward with the change and password sharing outside of a household became more limiting, with the option for eligible subscribers to pay for extra members. And after all that backlash? The change eventually became part of the streaming experience.
Netflix wasn’t alone. Other streaming services like Disney+ have since tightened their own password-sharing policies or introduced paid options for people outside the account holder’s home. While it was once controversial, it changed the standard for the industry and streaming.
As communicators, the lesson we take is that not every business decision is going to make customers happy and it might even compel them to take action. While frustration doesn’t necessarily mean a company should reverse its decisions, they should be aware that a change could upset the audience. They should also know that the way they communicate it matters.
Change in pricing or policies can create pushback, and communications needs to be a part of the conversation early before the decision is made. Have a plan in place for how you are going to share the news, the reasoning behind the change and how the audience might react. You will be glad you did.
HMA Public Relations can help you plan for the response and communicate it clearly.
Contact us to learn more!
