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Campaign Orange:A Campaign to Capitalize the Production of Netflix Original Content

Classic Solutions

MCOM 453 Strategic Public Relations and integrated Communications

Christopher Thacker, M.A., M.S.

May 15, 2015

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Table of Contents

Executive Summary………………………………………………………………………………3

Situation Analysis…………………………………………….

Company Analysis…………………………………………………………………….

Industry Analysis…………………………………………………………………….

Competitive Analysis………………………………………………………………….

Amazon Video on Demand…………………………………………………

Redbox Automated Retail, LLC.…………………………… ………………..

SWOT Analysis……………………………………………………………………….

Market Analysis………………………………………………………………………

Campaign Plan………………………………………………………………………………..

Evaluation…………………………………………………………………………………….

Appendices……..……………………………………………………………………

Executive SummaryThe problem with Netflix is not earning a leading spot in both the competitive home entertainment and online digital streaming markets. Netflix was a pioneer in the online streaming industry and has made its way to the top of the entertainment market for both television series and film. The challenge for Netflix is maintaining their spot at the top of the market.\Netflix has business in several markets such as home entertainment, online streaming, subscription membership services and original content production. Being involved with all of these markets is a strength for Netflix because there is so much space to grow and expand business. At the same time, this is a weakness for Netflix because it allows for entry of a wide variety of competitors offering diverse services.

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With every problem, there is an opportunity. Being in such a high competitive environment brings forth the opportunity for Netflix to capitalize on the already existing features that have retained subscribing members since business began. It will be crucial for Netflix to emphasize all that a monthly membership offers in order for consumers to either keep their membership or for non-members to join and experience the benefits. An opportunity that should be taken advantage of is capitalization on Netflix’s production of original content, a feature that sets them apart from other online subscription services. This campaign is going to stimulate anticipation for the upcoming release of season three of Orange is the New Black, one of Netflix’s most popular original series.

This campaign is going to emphasize the importance of Netflix and its strength producing original content in the streaming service industry.

Situation Analysis

We analyzed the situation of Netflix in order to find areas where Netflix is struggling and how Netflix can improve. From this analysis we found that Netflix needs to fight harder to remain on the top of the industry with pressures from more participants in the market than ever before. We found this from analyzing the company of Netflix, and numbers show they are in a good position, but the market analysis shows competition starting to pick up small market shares. Although Netflix remains on top, other competitors’ market share could continue to increase if Netflix doesn’t differentiate them, fend off the competitors, and continue to keep a strong hold on the majority of the market.

Company AnalysisWe analyzed the current situation of the company and the overall purpose of Netflix as a brand, the company from a global perspective, the financial standing and restrictive weaknesses. The company analysis creates a foundation in which we can identify possible problems and opportunities. Our analysis revealed that while Netflix has always been at the top of the market, the market it becoming saturated with new competitors since video streaming is trending, and is an easy and relatively low cost market to enter.

Netflix’s mission and values. While Netflix does not have an officially released mission statement, Co-founder and CEO Reed Hastings has expressed verbally the vision of Netflix. The vision of Netflix according to Hastings includes “Becoming the best global entertainment distribution service, licensing entertainment content around the world, creating markets that are accessible to filmmakers, and helping content creators around the world to find a global audience” (Farfan, n.d.). Hastings also emphasizes licensing content and creating an easy access global market . Netflix also has a list of 9 values they promote for their employees that includes “judgement, productivity, creativity, intelligence, honesty, communication, selflessness, reliability and passion” (Farfan, n.d.). These values and statements issued by Hastings give an accurate picture of what the mission of Netflix may be if there were to be an officially released mission statement. The overall mission of Netflix is met through the company’s attention to creating original content, and having subscribers is over 200 countries around the globe.

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Netflix’s core business. The core business of Netflix is classified as video tape rental (more currently, movie and television streaming) (Lexis Nexis, 2015). With the classification of Netflix as a video tape rental company, their core business focuses on selling and distributing media on a month by month rental basis for a flat rate fee. While the core business has been established as videotape rentals/streaming content, the key point that sets Netflix apart from others in the business is their ability to create successful original content. In the context of Netflix, video tape rental also refers to streaming content including several original series shows created by the company itself. While Netflix does still offer DVD by mail rentals, there is more of a focus on streaming content rather than physical DVD rental. The main focus of Netflix is to keep customers able to watch advertisement free streaming content all while paying a reasonable flat rate fee monthly. What Netflix Offers.The company has three operating segments: Domestic Streaming, International Streaming, and Domestic DVD. It is primarily engaged in the internet delivery of TV shows and movies. The company has more than 44 million streaming members in over 40 countries. According to the company's current 10K government filing it had FYE 12/31/2013 revenue of $4.3 billion and has 2,022 employees (Corporate Affiliations, 2015). It began as a subscription based service in 1999, offering DVD and Video Rentals through the mail, until it expanded its services to include internet streaming. Netflix has remained dependent on movie and TV studios for content, until recently. Netflix now offers popular TV Shows and Movies in addition to producing award winning originals such as House of Cards, and Orange is the new black. Topping 57 million subscribers in the U.S. alone, Netflix plans to expand its products and services to 200 countries by 2017, and on average would have to launch in six new markets every 24 months (Spangler, 2015). In addition to international expansion, Netflix has moved more aggressively towards the production of further original series. It has many partnerships with new organizations like Nintendo to develop a live action series based on Legend of Zelda, and also outbid Amazon Prime and Hulu to gain the rights to Love, a new romantic series from Judd Apatow (Wallace, 2015).

Financial Insights Maintaining a strong leading presence against rising competition will be most beneficial to Netflix to do now, than to wait before they lose position. Netflix is momentarily coming out on top with its investments in original content and expansion into international markets. Netflix Inc. has a market value of approximately US$5.8 billion and a Net Income of $266,799,000 in 2014 alone (Forbes,2015). They incurred $5,504,656,000 in sales, and have a Market Cap of $26,846,383,107 (LexisNexis, 2015). A financial analysis of Netflix can conclude that they have maintained a healthy financial performance that will allow them to compete in the current market. This information is further summarized in the table below.

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Figure 1. Summary of Netflix Financial Report

SALES (USD) 5,504,656,000

NET INCOME (USD) 266,799,000

ASSETS (USD) 7,056,651,000

LIABILITIES (USD) 5,198,943,000

NETWORTH (USD) 1,857,708,000

(LexisNexis, 2015) Net Sales growth has averaged on an increase of 26% per year, and a book value of $54.48 per share (Forbes, 2015). This is a pretty healthy stock value, and the increase is telling since there has recently been so much invested in the original content. The quick ratio of Netflix Inc. is .6 as of 12/31/14. So, while Netflix is under the 1 value, it indicates debt, but the debt is healthy since it’s a result of investment. Netflix has an ROI of 16.72. They have a total debt ratio of 51.13, and a total asset ratio of 3.80. Total debt and total assets are measured together at 14.71(LexisNexis, 2015).

In other financial news, in May 2014, Netflix increased the fee for UK subscribers by £1. The price increase took effect immediately for new subscribers, but will be delayed for two years for existing members. Netflix applied similar increases in the United States (an increase of $1) and the Eurozone (an increase of €1) (Forbes, 2015). This increase in service price indicates that the demand for Netflix is rising if they are still able to remain popular even at a more expensive costs, and these costs will also help cover expenses towards new content.

According to Forbes Netflix can add roughly $500 million in annual incremental revenues in the U.S. alone by 2017 with this move" and "roughly $200-$250 million in incremental revenues from price changes in international markets (Forbes, 2015).”However Reuters' Felix Salmon is critical about Netflix's financial future, noting "any time that Netflix builds up a profit margin, the studios will simply raise their prices until that margin disappears" (Reuters, 2015). This implies that competition and demand are things that Netflix cannot control, and whether content costs rise due to demand could be an issue for them. The company recorded revenues of $4,374.6 million in the financial year ended December 2013 (FY2013), an increase of 21.2% over FY2012. (LexisNexis, 2015). The operating profit of the company was $228.3 million in FY2013, compared to the operating profit of $50 million in FY2012. The net profit was $112.4 million in FY2013, compared to the net profit of $17.2 million in FY2012 (LexisNexis, 2015). The net profit was $112.4 million in FY2013, compared to the net profit of $17.2 million in FY2012. The company's strong financial position will positively impact investor confidence and also help the company in expansion plans (LexisNexis, 2015).

Netflix is Focusing on Digital Content Delivery. Ever since Netflix was founded, the core competencies have changed to fit the demand of the audience. The core competencies of Netflix

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over time have included physical content delivery, digital content delivery, and original content production. Currently, Netflix is primarily engaged in the Internet delivery of television shows and movies (LexisNexis Corporate Affiliations, 2015). The Netflix information page states that Netflix is the world’s largest subscription service with over 57 million members in nearly 50 countries. A core competency of Netflix is the simple and straightforward model that allows people of all generations to come and go as they please with their membership and enjoy unlimited content. The easy and genuine structure is attractive to viewers because of the strong brand Netflix has built and because they were the first to provide this type of online viewing experience.

Keeping Up With Content Prices is an Issue. With new competitors entering the industry around 2011, Netflix was forced to increase prices for membership. The main limitation of Netflix is the reliance on the membership price increase as a way to raise enough money to increase the online library for streaming (Allen, Feils, and Disbrow, 2014). Netflix is no longer using content delivery as a strength which is letting other competitors in that genre of content delivery move ahead. “Netflix ended September 2014 with 6 million DVD-by-mail subscribers which is down from nearly 14 million in 2011”(Liedtke, 2014).

In terms of original content production, Netflix is not in the strongest position compared to HBO, Showtime, Starz and other major series networks. In 2013 Netflix began producing their own content and are just beginning to be noticed for their original series such as Orange is the New Black and House of Cards. Netflix is limited in the original content production field because there are already such strong competitors that have been steadily successful and producing content for a much longer time. Netflix has been involved in litigation matters relating to business practices and patent infringement that has disrupted their financial position and brand image. Netflix has spent millions on lawsuits over consumer privacy and shareholder class action (Marketline, 2013). From this analysis, the conclusion can be made that Netflix’s primary focus is video tape rental, specifically through online streaming services and content delivery via a membership subscription. Netflix strives to provide their service to a wide range of consumers both nationally and internationally.

Industry AnalysisThe Industry analysis puts Netflix up against its competitors as well as against its success in the market as a whole. There are substantial statistics that show Netflix is a key company in both the subscription streaming industry as well as the digital video rental industry. Data also shows that while other companies are entering or leaving the industry Netflix has remained a constant household name in these markets. By examining the industry and these markets, areas where Netflix is either dominating or suffering can be more easily visible. The industry analysis will

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make it more clear what direction Netflix needs to go with this campaign in order to stay ahead of competitors. Netflix Position Within the Current Market According to a Motion Picture and Video Production Industry Report (2014), in reference to NAICS code 51211, industry sales have increased at a steady rate since 2011 to the present. A chart represents a 9.1% increase from 2011-2012, an 8.9% increase from 2012-2013, a 9.5% increase from 2013-2014 and a 10.4% increase from 2014-2015 (Motion PIcture, 2014). Sales in 2011 were at $46,322,000 and are currently now roughly $66,508,000 (Motion PIcture, 2014). Which means that Netflix is on a constant rise, and outdoing themselves each year.According to LexisNexis (2015) Netflix is dominating the video tape rental industry, with significantly higher net sales, higher total assets, total liabilities, and the only net income that isn’t in the negatives. Netflix’s net sales is 20 times higher than the next company in video tape rentals, West Coast Entertainment Corporation (LexisNexis, 2015). The Top Movie Rental Firm by Market Share Reporter (2012) shows that in 2012 Netflix dominated the industry at 43.2%, next was Constar (Redbox) at 23.9% of the industry, and Dish Network (Blockbuster) at 13.0%, and all other firms collectively at 19.9%. Which shows that Netflix was 20 times better than its biggest competitor in 2012 (Market share, 2012). Market Share Reporter (2012) also shows that digital video has been steadily increasing and stealing share from physical DVDs since 2007. There is a 47.1% increase from 2007 to 2012 in the industry from DVD’s to digital video (Market share, 2012). The top firms have changed in more recent years because Blockbuster declared bankruptcy in 2010 and was sold to Dish Network in 2011 (Market share, 2012). In 2013, Dish Network announced complete closure of the Blockbuster company. Which means that while Netflix’s competitors are always changing, Netflix has and still remains a steady constant in the industry for years. Also, according to Home Entertainment Spending by Market Share Reporter (2013) spending rose to nearly $18 billion in 2013. These results were due to the growing awareness and acceptance of digital services and products. Although DVD/Blu-ray sales still dominate the home entertainment industry at a share of 42.7%, subscription streaming is now second at 17.3% of market share (Market share, 2014). Following is video on-demand rental is at 11.5% and kiosk rental at 10.5% (Market share, 2014). What this means for Netflix is that although streaming is not yet the most popular way, it is the second most, and streaming is still on the rise. Interestingly, in 2013 Netflix had 14% market share in the home entertainment industry in the United Kingdom, and Amazon Prime Instant Video held 6% of that market share (Gale, 2013). The market continues to grow each year nationally as well as internationally. Netflix is dominating the billion dollar home entertainment industry in the United Kingdom. Who Challenges Netflixs Hoover's Company In-depth Records (2015) listed over 20 companies as direct and indirect competitors, but the few that are repeatedly listed as some of the top are Amazon, Best Buy, Redbox, Apple, Google, Direct TV and Hulu. Most of these companies have introduced their video streaming in more recent years, which means that being a veteran in the industry sets Netflix apart.

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TeammatesNetflix has had partners in the past and the current. Earlier this year, partners Funai (Philips, Magnavox, Sylvania and Emerson brands in the U.S), Panasonic, Sanyo, Sharp and Toshiba have partnered with Netflix. The partnership will bring Blu-ray disc players and digital televisions that Netflix can be streamed off of (PR Newswire,2015). Netflix has also announced a partnership with DISH network to stream Netflix off of the set box, which would allow less of a convenience for second streaming device (DISH, 2015). These consumers still are expected to pay the monthly fee of $8.99. Netflix has also partnered with Facebook with their share feature, which allows friends to share to their friends what they have been watching on Netflix lately. In the past, Netflix has partnered with TiVo! (TiVo, 2008)

SetbacksNetflix’s industry issues are far from small. Companies like Hulu, Google TV, Apple TV, and various cable companies started offering streaming options. Cable company Comcast offered Streampix to Xfinity subscribers for the price of $4.99 (Comcast, 2012). The company Hulu Plus also offered streaming of previously run TV shows, for $7.99. Because of these competitors, Netflix is not as dominant as they once were years ago. In October 2012, Netflix reported an 88% decline in third-quarter profits (LA Times, 2012). Netflix is a subscription-based company, which it solely relies on for growth and profits. Netflix also upset their loyal customers in 2011, when they decided to combine streaming and mail delivered DVDs. That decision ultimately resulted in the company ending that feature altogether. After analyzing Netflix as a company and their position within the industry, it is clear that Netflix has some very strong core values that need to be upheld and a very strong presence in the industry. The overall evaluation showed many strengths but still showed room to improve. While Netflix exceeds in areas such as the domination of the market, the low barrier nature of their products and services allows for the possibility of competitors to offer similar things as well. Because of this, it will be important to analyze the elements of the competition in comparison to our product to determine possible opportunities to strengthen the brand. Competitive AnalysisAfter researching companies that offered similar services as Netflix as well as presented the most competitive threat to Netflix, the following competitive analysis is going to focus on the Amazon Video on Demand service, as well as Redbox’s automated retail kiosk service in comparison to Netflix and where each company stands in the market. Redbox is a threat to Netflix in the home entertainment industry, but not as much of a threat as Amazon Video on Demand is to Netflix in the online digital streaming services. Amazon Video on Demand is a bigger threat to Netflix because both have similar core competencies. Amazon Video on DemandNetflix’s first competitor is Amazon Video on Demand, a subset of Amazon.com, Inc. With Amazon’s already established consumer loyalty, they now are gaining followership for their video streaming service, giving Netflix direct competition for their similar services.

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Objectives of Amazon Video on Demand The mission statement of Amazon.com is “to be Earth’s most customer-centric company, where customers can find and discover anything they might want to buy online, and endeavors to offer its customers the lowest possible prices” (Amazon, 2015). There is no specific mission statement for the sector of Amazon Video on Demand or Amazon Prime. Like Netflix, Amazon Video on Demand does not have an official mission statement. However, Amazon highlights low prices in their mission statement, while Netflix focuses more on creativity, honesty and trustworthiness. The customer’s wants and needs are coming first in both statements, but the focus for Netflix is more tied to consumer emotions, and the focus for Amazon is tied to consumer’s spending preferences. Overall, the mission of Amazon is being met through their video on demand services, because it is what their customers come to them for, and the distribution of content is easily accessed.

Best Qualities of Amazon. The core business of Amazon in general is that of catalog and online mail order sales. Although the brand of Amazon Video on Demand would fall under the category of video tape rental (more currently, movie and television streaming). Netflix also falls under this category, making them a direct competitor. Although Amazon Video on Demand is a sub product of Amazon itself, it still competes directly with Netflix as if it were a separate company. (Lexis Nexis, 2015). With Amazon Video on Demand being part of a conglomerate, they do have an advantage over Netflix as far as funding and overall brand awareness. What’s OfferedAmazon started as Earth's biggest bookstore (Amazon, 2015) and has become Earth's biggest everything store, so only a small section of their store directly threats Netflix. Products and services of Amazon in general include a very wide range of home, apparel, automotive and electronic goods (Lexis Nexis, 2015). Amazon also has its own product, which is its portable e-reader, the Kindle. Amazon decided to focus on entertainment in 2008 (Lexis Nexis, 2015). The company launched Amazon’s Video On Demand, a service that gives customers the option to stream or download ad-free digital movies and TV shows on Macs or PCs. We decided to focus on this service as a direct threat to Netflix, although Amazon's online instant video streaming service is a distant second to Netflix since it is relatively new (Lexis Nexis, 2015), and Amazon can only focus a portion of its efforts on this service since the company as a whole offers a variety of other things. But the threat comes from the credibility of the brand and the household recognition of Amazon. Loyal Amazon users will most likely use this component of video streaming on Amazon even if they were a previous Netflix user.

Insights Into the Financial Condition Amazon Prime (Amazon.com, Inc.) is a subset under the company’s massive reach into distribution services. With a net income of 1.15 B (LexisNexis, 2014). Amazon definitely tops competition in revenue as a result of their hedging and successful business model in which they have a wide variety of services, all of which are doing equally well. With a quick ratio of .82, Amazon falls slightly under the 1% mark, but this is due to their investments in development of original content, similar to the business moves that Netflix is also making. When Amazon.com reported its fourth quarter earnings last month, the announcement came with an interesting note from CEO Jeff Bezos. He wrote in the earnings release that Amazon "paid billions of dollars for Prime shipping and invested $1.3 billion in Prime Instant Video." That amount includes

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funding for its original productions like Transparent and licensing for other popular content. It might fall short of the $3.2 billion Netflix spent on content in 2014, but Amazon is expected to further increase its Prime video investments this year (Levy, 2015). Yet, with Total Assets at 40,159,000 USD and Total Liabilities at 30,413,000, and an ROI of 1.03% (Lexis Nexis, 2014), Amazon is fully capable of making these investments to diversify their service even further while also maintaining to remain out of debt, and attract new investors. This stands against Netflix as a competitive threat because it is the most similar and successful product in the market to what Netflix offers. Although Netflix has spent more on original content, a $3 billion dollar sum compared to Amazon’s $1.3 billion, it still is a threat that could be up and coming if it is successful or continues to build. In addition, Amazon can afford to spend more since their distribution services are so widely dispersed, they have many different eggs in different baskets, allowing them to be more flexible with their investments and spending since they don’t have one form of revenue, in the way that Netflix does.

Netflix’s Struggle Against Amazon’s Deeper Pockets As mentioned, Netflix spent approximately $3.2 billion on programming last year. Hulu spent approximately $750 million on licensing and millions more on originals. With both companies competing with Amazon for exclusive rights to the hottest titles, the prices will only continue to climb (Levy, 2015). With rising prices for rights, content costs will also have to rise which may affect what Netflix will be able to afford when keeping up with companies such as Amazon who have more money to spend to acquire this content for streaming.

Amazon is ultimately willing to pay more than both stand-alone streaming services, as the retail king continues to make money from Prime members shopping on the site.

Amazon ended 2014 with $17.4 billion in cash and investments. Comparatively, Netflix had just $1.6 billion. In a fourth quarter letter to shareholders, Netflix CEO Reed Hastings told investors that the company will look to raise at least $1 billion in debt this year to help fund its content purchases as the rest of cash flow goes toward building out its service around the world. While interest rates remain low, the fact that Netflix must borrow to fund content acquisition will significantly impact the amount it is willing to bid, and the company has noted that it will have to factor interest expenses into its content budget (Levy, 2015).

Amazon is in a position to buy more content at an effectively lower price than Netflix, while producing more revenue because of their other services as well. Best Features The core business of Amazon Prime Instant Video is to offer a stream service to its customers providing over 150,000 movies and TV shows to rent or buy (Amazon, 2015). Also, to provide over 40,000 unlimited streaming. This service is similar to Netflix because they are both streaming services, however, structurally they are two different kinds of companies.

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Restrictions Amazon Prime Instant Video’s limitations start and end with Amazon as a whole. Amazon is a conglomerate offering more than simple streaming services. Their core competencies are to provide customers with an online shopping experience as they are e-commerce business. A subscription to Amazon Prime is $79 a year (Amazon, 2015), the main reason consumers purchase Amazon Prime is for two-day shipping offered by Amazon. Amazon Prime Instant Video is an additional bonus for enrolling in Amazon Prime for a year. Amazon Instant Video originally was unavailable for Android, essentially making up half of the mobile devices nationwide. It also was not available on Google’s Chromecast. Amazon Video on Demand does not offer identical services to Netflix, but still poses a threat in the video streaming industry. Amazon Video on Demand has a bigger financial presence than Netflix which gives them more flexibility in spending opportunities regarding content for their services.

Redbox Automated Retail, LLC Redbox Automated Retail, LLC is Netflix’s second competitor. Redbox is owned by OUTERWALL Inc. This company does not require a monthly subscription for service, and is widely available across the country, at just $2.00 per rental.

Redbox and it’s Character The mission statement for Redbox is “People crave entertainment. At Redbox, we make entertainment more accessible and we do it better than anyone else” (Coinstar, Inc.). This mission makes a bold declaration to customers and appeals to those who do not want to pay a monthly subscription, but want simple and fast access to the latest movies. This mission statement is more aggressive than the Netflix mission statement, making a clear assertion that they make “entertainment more accessible than anyone else” (Coinstar, Inc.). Redbox does meet the terms of its mission statement in the way that their kiosks are available at convenient locations around the country. The second part of their mission statement is difficult to evaluate, as it is a bold assertion that is clouded with bias towards the company. How Does Redbox Compare The core business of Redbox is classified as “automated DVD rental kiosks operator” (Lexis Nexis, 2015). This core business is a bit different than Netflix and Amazon Video on Demand, in the way that Redbox does not stream material via the Internet. Redbox allows you to rent DVD, Blu-ray discs, and video games through its signature red kiosks at major retailers, including Kroger, Wal-Mart, and Walgreen's (LexisNexis, 2015). Customers rent movies at the automated kiosk. Customers can also reserve them online and pick them up at the kiosk. Discs can be returned to any Redbox machine and no membership is required. While Redbox does not offer streaming material, it also does not require users to have a monthly subscription as Netflix does. Therefore, consumers can spend as much or as little on DVD rentals as they want per month, instead of being locked into a monthly fee no matter how much they watch in streaming or DVD rental. Although no membership required decreases the chances of customer loyalty, unlike Netflix. Also Redbox only offers a certain number of movies at one time, whereas Netflix offers hundreds of movies and TV shows. Redbox can run out of the discs offered for that movie in the kiosk box, but Netflix does not ‘run out’ of discs, they offer physical discs in the mail as well as unlimited online streaming.

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Redbox’s Financial Situation Redbox is a subsidiary of Outwerwall Inc., a kiosk service that also owns Coinstar Inc., and as a subsidiary they now own 47.8% market share of the physical rental market share (NPD Group, 2013). However, Outerwall Inc. has a net income of 174,792,000 (MarketWatch, 2015), and Net Sales of 2,306,601,000 (MarketWatch, 2015). This indicates that, similar to Amazon, Outerwall’s ownership of kiosk services that involve movie rental as well as money have been able to allow for more revenue. Outerwall has total Net Sales of 2,306,601,000, Total Assets of 1,896,700,000, and Total Liabilities of 1,378,011,000 (MarketWatch, 2015). With its quick ratio at .7, it is only slightly higher than Netflix, and R.O.I of 9.54% indicates that it is half as highly profitable as Netflix is at 16.72% (MarketWatch, 2015).

Low Costs of Newer Content Versus Low Costs of Diverse Content The issue that Redbox’s presents to competitors is it’s ability to offer newer content at a lower price, even though it is through a rental service, and not streaming, like Netflix. Netflix still does not have access to the newer content Redbox does simply due to streaming costs. During the third quarter of this year Redbox rented 172.2 million DVDs. Starting Dec. 2 Redbox announced that it would be raising its prices from 1.20 to 1.50 a night due to its financial success and Outerwall Inc.’s share’s went up by 12% (Crum, 2015). A crucial factor of all this remains is that the VOD [video-on-demand] price is not going down, so the price-sensitive customer has nowhere to go for a better deal (Crum, 2015). However, while Redbox offers the newest titles, the options are still not as extensive of the kind of streaming materials that can be accessed through Netflix.

Redbox gives viewers instant gratification. Redbox satisfies customers immediately when they want to watch a newly released movie. With Redbox, people can visit a local kiosk and pay $1.50 for a movie rental, or $2.00 for a Blu-ray rental, per day. According to the CEO of Outwall, Redbox’s parent company, “Redbox remains the best value in new-release home entertainment” (Liedtke, 2014). New releases are rarely licensed to Netflix and other online streaming suppliers and it usually costs anywhere between $5 and $10 to view them on other video on demand options.

Redbox doesn’t have it all. Instead of the monthly flat rate Netflix charges their subscribers, Redbox charges a fee every time a user rents a movie. After the first day of a rental from Redbox, there is a charge per day until it is returned. This can be seen as a limitation because every time Redbox users want to rent a movie, they have to leave their house and pay a fee instead of paying once per month with Netflix and watching an unlimited amount of the available content. Another limitation of Redbox is the selection being primarily newer releases. If a customer is interested in watching an older film, they are more likely to find it on Netflix or another online portal. Redbox does not commonly carry classic movies. Redbox is also limited in

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the amount of DVDs the kiosk can hold. After a certain DVD sells out at a kiosk, it is no longer available to be rented until another customer returns their copy. To summarize, it is clear that although the services of Amazon’s Video on Demand, as well as Redbox’s kiosks are not identical to the services of Netflix, the overall goal is the same to penetrate and hopefully lead the home entertainment industry. The direct and indirect threat these services offer to Netflix is something to be aware of, and seeing how Netflix adds up next to these companies is important. SWOT Analysis

Understanding the strengths, weaknesses, opportunities and threats as they pertain to Netflix is the next important step in the evaluation of the company’s current status. The SWOT Analysis allows the comprehensive overlook of Netflix to be broken down and looked at in four simple parts. By looking at the strengths, weaknesses, opportunities, and threats separately, the plan of action to improve Netflix as a brand will become much clearer. After assessing the areas where Netflix flourishes, along with the areas it struggles in, it will be much easier to create a branding plan that will create a positive message and view of Netflix. Looking at the threats will also help keep the brand up to date and aware of outside forces that they cannot control. Netflix’s current position is strong, but the company needs to understand the direction the industry is trending in. Following the trend is not enough to stay top of mind with consumers, bringing focus to the strengths of Netflix, while being ahead of the curve on industry trends will help ensure that Netflix stays in control of the market share.

Strengths. Netflix streaming and DVD services being available to anyone having access to the Internet (Netflix Help) is a clear strength for the company. With 84 out of every 100 people in the United States alone having access to the Internet in their homes (Worldbank), there is a clear advantage to Netflix streaming online. The affordability of Netflix monthly subscriptions (Netflix Team, 2014), is another strength of the brand. The flat rate membership fee is $7.99 per month for unlimited streaming services on one device at a time (Sign In Netflix, 2015). The rate goes up to $8.99 if a subscriber would like to use the account on two different devices at once (Sign In, 2015). With the national average wage index for 2013 being $44,888.16 (Social Security, 2013), Most employed individuals in the United States can afford $7.99 on home entertainment. The creation of original content (Best of Netflix, 2013) is one of Netflix’s biggest strengths. None of the other streaming competitors of Netflix have capitalized on the idea of creating original content, setting them above the competition in the area exclusive content availability.

Weaknesses. While the monthly subscription of Netflix is very affordable as previously discussed, the monthly subscription requirement (Netflix Team, 2014) is a weakness of the

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brand. Other competitors offer pay as you go plans, letting consumers pay only for content they want to watch. Netflix’s current subscription policy forced consumers to pay for content they may or may not watch on a monthly basis. The long lead time for new content (Obenson, 2013) is also a weakness of Netflix. The monthly subscription of Netflix may not seem like so much money to consumers if the content was updated quickly and regularly as with some of their competitors. The legal issues of Netflix have has an impact image and financial condition, leaving Netflix open to numerous legal hearings and proceedings (Netflix SWOT, 2014). Legal issues are a part of any global company, but Netflix is having trouble with patent infringement among other things, making the growth of their business struggle.

the future outlook, opportunities. Netflix has a large market share in the online streaming and DVD industry (Midnight Trader, 2013). This large share of the market is an important opportunity because it enables Netflix to understand the power they hold as a brand, and keep their subscribers happy and loyal in order to maintain their majority in the market share. There is a high demand for online streaming service (McKenzie & Schmidt, 2012), which is a clear opportunity for Netflix. Most of the subscribers of Netflix are looking for the online streaming services, not the DVD rental, therefore the service they offer is in higher demand than some of their competitors that focus on mostly DVD rental. While Netflix uses phone carrier data to stream content while a mobile device user is not connected to WiFi, usage on small mobile devices is low (Netflix Help). The fact that the usage is low on small mobile devices such as phones is an opportunity for Netflix to capitalize on partnerships with other devices that their service is used on more frequently. the threats. The issue of net neutrality is a large threat to Netflix (Peck, 2014). Net neutrality is an issue for any Internet webpage, because without it, the pages could run significantly slower than others (Peck, 2014). If Netflix is forced to run at a slower rate than other web pages, their customer base will surely suffer. Over the last several years, there has been an increase in valid competitors of Netflix (Stevenson, 2014). Companies such as Amazon and Google have branched off and dabbled in the market share of online video streaming, closing the gap in the market for Netflix. DVDs are becoming irrelevant (NewsUSA) which is an issue for Netflix because half of the services they offer include DVD rental. The combination of DVD rental and online streaming is also what sets them apart from most of their competitors, which offer either one service, or the other.

It is clear that the SWOT analysis of Netflix is a great tool and indicator for where growth and brand improvement can be implemented within the company. This information creates a solid foundation on which to move forward with in looking at the current market situation of Netflix. The Market Analysis will also provide key information about the current market state of Netflix,

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allowing the SWOT information to be better utilized when re-branding. Understanding and evaluating the SWOT analysis will give a solid foundation to work from when focusing on problems, opportunities and solutions for a new branding campaign. Market AnalysisThe Market Analysis will look at the current size of the market, how much it has grown, and its potential growth for the future. It will also segment the market into primary and secondary consumer demographics and psychographics. This market at a glance will paint a clearer picture of where the market is going and what type of consumer can be found in that market.

Netflix is the leading movie rental firm. Netflix is categorized in several different industries and therefore is a part of several different markets. In a 2013 survey, Netflix was the most used set-top-box streaming content provider in the United States followed by Amazon Prime, Hulu/Hulu Plus, Redbox Instant and Blockbuster (Research Alert, 2013). The home entertainment spending in 2013 was $18.2 billion. Figure 1 depicts the composition of the home entertainment industry in 2013.

Figure 1. Home Entertainment Spending, 2013

DVD and Blu-ray sales made up for 42.70% of the spending, subscription streaming was 17.34% of the share, video-on-demand rental was 11.58%, kiosk rental was 10.54%, digital purchases was 6.53%, rentals from stores was 5.71%, and disc subscription rental was 5.60% (Home Entertainment Spending, 2013). Netflix could fall in both the subscription streaming category as

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well as the disc subscription rental share. This shows that while Netflix’s subscription online streaming element of business is thriving in the home entertainment industry, the disc subscription rental is not. Figure 1 tells us that Netflix is a part of the second largest element of home entertainment spending, disc subscription rental. Figure 2 portrays the percentage of business each leading movie rental firm had in 2012. Netflix was the leader of the movie rental firm industry in 2012 with 43% of the market share.

Figure 2. Movie Rental Firms, 2012

Netflix43%

Constar (Redbox)24%

Dish Network (Blockbuster)

13%

Other20%

Movie Rental Firms, 2012

In 2012, Netflix lead the industry in movie rental firms. The “Video Tape and Disc Rental” industry (NAICS 532230) is valued at $8.3 billion. Figure 2 represents Netflix holding the majority of the market at 43.2% followed by Coinstar (Redbox) at 23.9%, other suppliers at 19.9% and Dish Network at 13% (Market Share Reporter, 2012). Although disc rental is one of the least represented options in home entertaining spending (Figure 1), within that industry Netflix is the leader.

Netflix’s position in the market is driven by the additional features that are offered with membership. As seen in the competitor analysis, Redbox does not offer online streaming services. The features that Netflix offers in addition to movie rental could have driven Netflix to surpass Redbox in the market share. The failure of organizations such as Blockbuster and Hollywood Video also contributed to Netflix’s success in the movie rental market.

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Where to go From HereNetflix does project growth with their sales and market share in the future. The company plans to have their service everywhere by 2016 as they currently are in 50 nations. Netflix plans to spend 3 billion in 2015 on content for its members (Netflix, 2015). The industry’s market is growing because Internet TV is booming and may soon replace linear TV. As technology grows so will streaming services, as consumers will be given the opportunity to launch these services on their devices despite their location.

Market GrowthThere is potential for growth in this market because streaming services are a consumers go to if their household lacks cable. The decrease of Linear TV is extremely important to the market growth of streaming services like Netflix. Even though linear TV is prominent, streaming services have the capabilities to take over linear TV because the Internet is a reliable and becoming faster with WiFi. It is also important to realize the sales and innovations in the upcoming years with smart TVs that are made with streaming options. Plenty of households have cable and a Netflix account allowing consumers to have the best of both worlds. The market has multiple competitors from Hulu Plus to HBO Go! if you don’t like one streaming service there will always be another to choose from. This could potentially mean Netflix can attempt to be all kinds to all people. However, Netflix has the focus to be the best in their industry striving to be the best for their consumers and no one else. Their long-term view states, “We don’t and can’t compete on breadth of entertainment with Comcast, Sky, Amazon, Apple, Microsoft, Sony, or Google. For us to be hugely successful we have to be a focused passion brand. Starbucks, not 7-Eleven. Southwest, not United. HBO, not Dish.” Netflix is on top of the trends of streaming as they make Netflix Original TV series. These series are often produced for a second and third season dependent upon the buzz and success of their first season with Netflix consumers. Netflix also partners with movie distributors to provide new movies frequently for their consumers. Net Neutrality, Content Costs and Adapting TechnologiesThe Market issues and barriers Netflix faces can be identified mainly by net neutrality, the low barrier entry market, and international expansion issues regarding technology. Primarily Netflix has already put in efforts against the limitations of net neutrality threatened by Broadband companies, such as Comcast. In other words, the loading speed of each website would differ depending on which website it was. There have been several negotiations between Netflix and ISP’s, such as Comcast, on what regulation is necessary and what is unfair. Activists who support the FCC regulations have invoked the possibility that the streaming video service could be impeded if Comcast created "fast lanes" and "slow lanes" on the Internet, perhaps to favor the channels Comcast owns (Stetler, 2015). What this means for Netflix is that their customer service could be impacted in that the buffering speed of their content could slow if they are punished for higher traffic on their website versus others, and because of this having to pay more to ISP’s to make up for it.

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This could result in more customer dissatisfaction, and lower quality of video, and since streaming video is Netflix’s primary service offered, it could be greatly impacted by this issue. This is an issue for much of the market, however Netflix’s competitor’s, such as Amazon Prime, and Apple, will be able to afford the cost of higher and faster streaming while Netflix, as a standalone company, may not. Next, another market barrier could be that within their move to expand internationally, there are broadband limitations that differ among regions that may force them to adjust their method, or target markets. In an article discussing Netflix’s international expansion, Howard Bass, EY’s global media advisor commented that “the cost of Internet bandwidth and the adoption of broadband is a crucial factor. This pairs with the issue that devices consumers use in individual countries may vary. In many countries, mobile phones are the primary access device, and wireless services often include data-consumption limits that make watching online video infeasible (Spangler, 2015).” That is to say, if Wi-Fi isn’t available to those markets, streaming content to these areas may be an issue. Technology limitations among the countries in which Netflix aims to enter is a considerable barrier because it may determine how successful Netflix’s expansion into these remote markets will be, and if spending the money to expand their service will realistically reach the audience in those areas. Finally, the rising price of content costs and licenses may be a Market barrier because the price of these services have not lowered, and as more competitors enter the video rental service, costs may rise due to demand, and it will be important for Netflix and other streaming services like Amazon VOD, and Redbox to be able to afford the service while also gaining a profit. This has affected Netflix in that the studios have learned that Netflix will pay astonishing sums for streaming rights — orders of magnitude more than it ever paid for DVDs. And while Netflix used to be able to rent out a DVD hundreds of times after buying it once, under the streaming contracts it has to pay the studios every time a movie or TV show is streamed (Salmon, 2012). Overall, market issues that pertain most directly to Netflix will be the issues such as net neutrality or content costs that will inevitably affect the quality of their service. How fast Netflix can stream its content, and the process through which Netflix can acquire new content to keep up with its competitors will be vital in the future success of the company, and vital to the success of their expansion as well. A Netflix UserAll information in the chart below was retrieved from Mediamark Reports (MRI+, 2013) Movies & Other Video (Rented Or Purchased) - where rented/purchased internet download or stream Netflix.com in the last 30 days Rented (2013). The information below organizes basic information regarding a typical Netflix user.

Women 51.2%

Men 48.8%

Adults ages 25-34 48 times more likely than the average person to

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watch Netflix

Adults HH income $150,000 and + 43 times more likely than the average adult to use Netflix

Adults that live in the West 35 times more likely to use Netflix

Adults with children ages 2-11 65 times more likely than the average adult to use Netflix

Adults with a home value of $500,000 or more 20 times more likely to be users of Netfli

Netflix users 75 times more likely to be moderate to heavy Internet users

Netflix users 52 times more likely than the average person to go on Amazon.com

(MRI+, 2013)

Users are mostly adults and almost evenly split up between male and female with a young adult high user age. These demographics offer a wide range of users for Netflix. Most users graduated college and some have some type of postgraduate education as well which is good for Netflix because their user profile is educated and more likely will have a higher discretionary income (MRI+, 2013). Most users are young adults and are employed in a professional occupation (MRI+, 2013).

Most users are either engaged or married which is good because there is a higher chance of kids and Netflix has a wide variety for kids (MRI+, 2013). Most Netflix users are White (MRI+, 2013). Netflix users are not heavy TV users, which is good because that means most of what they are watching is coming directly from Netflix (MRI+, 2013). Netflix users also aren’t heavy magazine, newspaper or radio users. (MRI+, 2013)

As seen in the chart, Netflix users are 52 times more likely than the average person to go on Amazon.com (MRI+, 2013). This is relevant because Amazon offers a Video on Demand streaming service which is a direct competitor with Netflix, so it is in questions whether the user remains a user of both services or convert to just one. These statistics of a typical Netflix user describes an upper-middle, to upper-class average White American. These demographic statistics describe the measurable, quantifiable statistics of a typical Netflix users.

Who Else Matters? The primary market targeted by Netflix appears to be its main users, or adults ages 25-34, most of whom are white, and employed in a professional occupation (MRI+, 2013). This is the target market because they have the most purchasing power, as well as the most loyalty to using the service due to the wide age range this market shows. Netflix’s marketing efforts, including their diverse range of programs appealing to an older audience, paired with their ‘Kids’ programs, ensure the

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versatility of their services that may appeal to this primary market, and in turn through this market, influencing two possible secondary target markets. First, a secondary market that could be influenced by marketing efforts targeted towards the primary users of adults 25-34 could be the children of adults 25-34. While this is not a focus for reasons that lie in the obvious low purchasing power of children around 4-8 it’s still such a large part of the appeal of Netflix. While the marketing is towards the parents, it can centralize around the ‘Kids’ feature of Netflix that appeals to the secondary target market of appealing to these children, who in turn will take part in influencing the purchasing decisions of the parents, or primary audience. Next, a more viable secondary target market could be young adults just in a slightly lower age range than the primary users. The significance of this portion of the market is that although their purchasing power is lower than adults 25-35, it still exists and therefore utilized by Netflix, second to that of the primary market. They are influenced by the primary market because of course they mimic the purchasing patterns of those older, and although it is less, it’s less because of the low income of this age range. It’s interesting because although less revenue is taken in by this market, this market has a vested interest, and more time available, to use Netflix and go through more of its content since they aren’t tied down by children or serious jobs. Netflix adheres to this audience, of about 15-25, through the multiple TV series that center on teen life and drama. While the primary market has the largest focus regarding marketing efforts, it’s important to realize the possibility of the effects felt by smaller subsections of the market. PersonaJack Medina is 29 years old. Jack works in finance at Wells Fargo bank, earning $170,000 annually. Jack is married to Lisa Medina, 26, together they have 4-year-old daughter Brooke and 2-year-old son JJ. Jack and his family live in Sacramento, California where he works at the Wells Fargo Headquarters. Jack has been a Netflix member for the past two years. Jack originally downloaded Netflix back in 2013 so he and Lisa could watch Orange is the New Black, and original Netflix series, as well as stream children's shows for their kids to watch. Jack is still a loyal Netflix customer because he and Lisa put Netflix on frequently for their two children as well as for themselves later at night. Jack’s favorite TV series was Breaking Bad, which he watched on Netflix. Jack is very technology and social media savvy. He has an iPhone 6, iPad, and MacBook which he collectively uses to stream Netflix to. The Medina’s also have a Smart TV, which comes with Netflix on it. Jack’s favorite type of film is action. Jack has a lot of purchasing power due to his discretionary income. He likes electronics and typically feels like he needs to have the newest and best product. Jack is fairly brand loyal to Apple products - he trusts their quality and also likes the social status the brand gives him. Jack enjoys being a member of Netflix because he has the income to pay the monthly fee and uses it often to stream movies and television shows for him, his wife and the kids. He does not use the DVD mailing feature. He likes Netflix because of the streaming quality, the television series and the convenience, although he wishes Netflix got newer content quicker, because sometimes it seems as though other services offering video streaming sometimes have newer content.

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Friday nights are the Medina’s movie nights, first the family streams a family movie onto the big TV from Netflix, and then after the kids go to bed Jack and his wife watch an episode from their current favorite TV series.

The Campaign

In this section of the plan, we will outline a campaign strategy based on the insights we found through the situational analysis. In this campaign we will be focusing on capitalizing the strengths Netflix has in its original content that has a stronger presence in the market than what competitor’s offer, the opportunity to capitalize on that to achieve differentiation among the streaming industry, and strategies and tactics that will allow this to happen through a careful construction of a campaign surrounding Orange is the New Black through the ways listed below.

Keep members interested in Netflix original content One strength that Netflix has over competitors in the streaming industry is the original content they produce. This original content is only available to those who are monthly members of Netflix. Competitors such as Amazon Video on Demand and Redbox do not produce their own content, which puts Netflix a step ahead. One weakness Netflix shows against these competitors is the commitment of a monthly membership. With some other streaming services, viewers can pay as they go or pay one time to watch content. This could be seen as both a strength and a weakness for Netflix because on one hand, members can get as much content as they want out of their flat rate membership but on the other hand, they are limited in content choices. With these strengths and weaknesses being known, it would be beneficial to capitalize on the existing power of original content production. If Netflix is constantly releasing new and original content, this is going to make consumers want to be a member and it is going to justify the commitment of the monthly fee. If members are given quality original content that they are not given anywhere else, they will be content with keeping their membership. This campaign is going to help emphasize the benefits the Netflix members have and why the content Netflix produces is better than competitors.

If Netflix is producing content that is getting people talking and eager for more seasons, those who do not have the content accessible to them are going to want it. This campaign to put the spotlight on original content is a way to reach the audiences emotions and get them to understand that the only way they can be a part of the viewing experience of shows like Orange is the New Black and House of Cards, is to

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become a member. The goal of the campaign is to get current Netflix members excited about upcoming original content and to get nonmembers questioning why they are not. Concentration on original content affects both internal and external publics. If the goal of this campaign is to focus on the original content, Netflix owners and employees need to be prepared to create the best material possible for the viewers and be a part of the marketing and upkeep of reputation for the shows.

Externally, shareholders are affected by any decision Netflix makes. The decision to focus on original content could be beneficial to Netflix or it could create other gaps in the business structure that could allow other competitors to enter in the low barrier market. Customers are also affected by Netflix’s issue because they are faced with dozens of options for how they want to spend their money in the home entertainment industry. If Netflix is not giving them enough reason to keep their monthly membership, they are affected negatively. This public is obviously crucial to Netflix’s success because the customers are the ones who are being targeted and who need to believe in the original content product in order for the campaign to be successful. Suppliers and distributors are key publics that are affected because Netflix needs to give them a reason to believe that the content they are distributing is worth the money it costs. The campaign will target young people interested in binge watching seriesThe targeted audience for this campaign is going to be a younger demographic of people, ages 18-34, who typically invest the time to “binge” watch television series. This particular demographic is also very influential because of their heavy integration with social media. Because social media is going to play such a large role in spreading information about this campaign, we need to target the people who are using it the most. People ages 18-34 are the ones that have the most interest in new and upcoming trends. If our campaign sends the message that upcoming Netflix original series are trendy and unique, they will resonate with that message. Members of generation Y appreciate technology integration, celebrity diversity and involvement in public movements. Knowing this, the campaign will be steered to help get them to be a part of the excitement and interaction with the Netflix series. The campaign will be S.M.A.R.T. in theory

Specific: Inform current members of upcoming third season release of Orange is the New BlackMeasurable: increase viewership of third season by 10% from March 2016-June 11(release date of new season)Achievable: Positive response from first and second season from Netflix membersRelevant: Expand viewership of Orange is the New BlackTimely: the campaign will start January 1st 2016 and will end in time for the third season release of Orange is the New Black – roughly 6 months in entirety. Rationalize: There was such a large response after the first ad second season of Orange is the New Black. By promoting the third season, Netflix can keep existing members and potentially gain more followership.

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Campaign Objective: For this campaign, we plan on bringing current user’s attention to the popularity of Netflix’s original content through press kits and more specifically on Netflix’s popular series Orange is the New Black, by holding an event for a season premier prior to the anticipated release of the third season Strategies:1. Event-Get members interacted directly-Enhance perception of Netflix original content-Get people motivated to watch upcoming season Rationalization: Holding an event will bring members together in direct interaction with Netflix’s brand. A controlled environment at an event is a good opportunity to positively interact with members. The goal of the event is to provide members with a fun experience and get them excited about Orange is the New Black.Through our event, we will generate awareness about Orange is the New Black through interpersonal communication and member engagement. In order to maintain awareness for the show, there will also be a media relations press kit sent out to the media for additional outreach. 2. Media Relations (Press Kit)-the press kit consist of a backgrounder, fact sheet, press release, invitation to event, and thank you sent out prior to the event-Spread awareness of new season of Orange is the New Black-Emphasize Netflix’s variety of original content-Promote event Rationalization: A press kit will provide a foundation for media outlets to be aware of the campaign goals, objectives and strategies. It will generate awareness in general about Netflix and it’s original content, as well as awareness about Orange is the New Black through background information alongside invitations to the events that will be held. The press kit will help Netflix inform the media.

Written Schedule Explanation of Campaign

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To see the schedule in a periodic laid out chart, please refer to appendix C. Refer to Appendix C to reference all of the numbers that refer to the chart as well. All of the background work in this campaign will happen on the start of the year 2016. January will consist of all of finalizing research and lists (1.2) of what we will need to make to make this campaign happen. Before the public is even aware of the campaign, phone calls and staffing and booking will be crucial to do now to reach our June 2016 deadline (1.3, 1.4, 1.5). February 2016 will be the introduction of this campaign through a press kit (2). Our press kit including a backgrounder (2.1), fact sheet (2.2) and press release (2.3) will be sent out to media outlets. Our goal during this month is to get as much coverage as possible about Netlix as a company, their unique and popular original content, as well as the Orange is the New Black season 3 Premier event that will be held on June 4th 2016 (7). March 2016 is when the initial informational email will be sent out to all Netflix users. This email will be informing them of this event being held on June 6th. In short this email will explain that the entire cast from Orange is the New Black will be invited to the event for an ‘orange’ carpet segment, reception segment, and the highlight of the event will bring the stars on stage in front of a panel for Q&A’s and other exciting entertainment. This email will also include the description of the actual contest (3.1), which says that the first 100 Netflix users to respond to the official email sent out on 4/4/2016 with the response, “Yes, I would like to attend the #LittleOrangeDress event” will be invited to this event that will also be live streamed. These informational emails will be sent out sporadically throughout the entire month of March, with a warning email (3.2) of the contest quickly approaching sent out the last week in march. April 4th the official email in which users need to race to respond to will be sent out (4.1). After picking the first 100 user, on the 6th of April (4.2) we will send a follow-up email announcing the surprise second chance to attend the event (4.3). This second chance is a social media contest, so the second chance will be advertised on all of Netflix’s social media – Facebook, Twitter, Instagram. This is a lookalike contest to be held on Instagram. The email will explain that for the following 6 weeks leading up to the event, each week Netflix’s Instagram will be hosting a lookalike character contest with one main character per week. The photo of the character of the week will be uploaded on Monday, users will have until Friday to

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upload images of themselves impersonating the selected character, the user will hashtag #LittleOrangeDress and #OITNB3 and #(whatever celebrity). On April 11th the social media contest will start (5). Week 1 will be Piper (5.1), week 2 is Red (5.2), week 3 is Crazy Eyes (5.3), week 4 is Alex Vause (5.4), week 5 Nicky (5.6), week 6 Taystee (5.7). The picture of that character of the chosen week will be uploaded that Monday and the deadline to upload your look-alike picture and hashtag it will be that Friday at 11:59. There will be one winner chosen per character. On May 23rd the 6 winners will be contacted, congratulated and will be awarded an invitation for them and a date to attend the event. (6.1) A final email will be sent on May 30th to all 100 initial invited attendees and the 6 contest winners with the official invitation, instructions and itinerary for the event. (6.2) See appendix C for itinerary of actual event. The event (7) will be held on Saturday, June 4th, and will be streamed live on Netflix’s site for all users to watch (7.1). The event will be available to be re-streamed by Netflix users for exactly a month after initial stream. (8.1) Thank you letters, which is the final segment of the press kit, will be sent out the Monday after the event on June 6th to all attendees and sponsors. (8.2) A Party with The ViewersThe main strategy for this campaign will be to host an Orange is the New Black season 3premiere party (an itinerary of the event is found in Appendix C). This event will draw major attention to the cast of the show, other cast members of Netflix original shows, and really shine light on the quality of Netflix’s original content development. The attention garnered from this event will serve to promote Netflix and its original content in a positive, and exciting light, leading to an increase in subscribers. The Orange is the New Black event, while mostly focusing on the new season, will give several nods to the other original content shows Netflix has to offer. The amount of people attending and the hype around the event will be more than enough to ensure that there will be an increase in Netflix subscribers when the event is over. Alerting The PressThe second strategy for promoting original content on Netflix will be to create a press kit which will promote the event party and show the press that the event is not only worth going to, but cannot be missed. The press kit will give solid examples and descriptions of the event, along with exclusive quotes from the cast of Orange is the New Black and other stars of Netflix original content shows. The press kit will also inform the media of the success of all of Netflix’s original content in it’s entirety and how Netflix’s original content really separates itself from other competition in streaming

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How Will Interest be Promoted?The Orange is the New Black event will be held at the Victory Studios in Glendale, CA. This is the same venue that ABC’s “The Bachelor” interviews are held. This studio loans itself to the atmosphere of our event. There will be a studio audience of all Netflix subscribers. This audience will have the opportunity to sit and watch stars from other Netflix original content shows interview the main cast members from Orange is the New Black from all seasons. This event will be streaming live on Netflix, giving viewers the unique opportunity to submit questions via social media to ask the cast members at the event. These questions will be asked by the cast members of several other Netflix original content shows. Having the interviewers for our event be cast members from other Netflix shows will help promote Netflix original content as a whole, even though the event is focused on the Orange is the New Black premiere. Understanding the power of earned media will be extremely important for this event, and Netflix as a whole. Earned media is created news organizations create stories from information they are given in a press kit, or when social media buzz is created and the topic a particular business is focused on trends. Earned media is earned in the way that there is little to no money being traded for advertising. Creating an exciting and informative press kit will be invaluable to Netflix, as it will cause a major buzz around the event, with very little cost comparative to running a television or print advertisement. For the press kit (see appendix), there will be a press release, to be sent out to every major news organization in the country before the event. These organizations will include the New York Times, Boston Globe, Chicago Tribune, and LA times. There will also be press kits sent to major entertainment magazines such as People and Vogue magazine. A press release will be informative and also give exclusive insight from the cast members of other Netflix original content shows via pull quotes. These interviews and quotes will entice news organizations to pick up the event story, giving Netflix essentially free earned media. Personalized invitations will also be sent out as part of the press kit. While a bit more costly than the press release, personalized invitations will give the event an exclusive feel, even though it will be streamed live on Netflix. The idea of a personalized invite makes guests feel special, and more importantly, more likely to RSVP “yes,” which will give the event legs. Other parts of the press kit will include backgrounders, an event fact sheet, and a thank you letter to all attendees. Giving backgrounder information to the press will be important for developing the stories they will writing about the events. A fact sheet will also consolidate information and facts about the event, making it as simple as copying and pasting for journalists to create a story about the event. Creating personalized thank you letters to go out after the event to all attendees will be a great touch and nod to the subscribers of Netflix. Making customers feel valued is difficult in the online streaming business. Thanking the subscribers of Netflix for coming will make them feel like special, valued and ‘VIP” customers, increasing morale and loyalty toward the Netflix brand. The event itself will be the most cost-heavy part of the strategies and tactics to achieve the objective of promoting Netflix original content. Having a solid and detailed budget plan will be an important part of managing the cost and gain on investment of this campaign. Where is the Money Going?

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In order to promote the original content of Netflix in a complete and positive way, there will have to be significant costs and planning to show that the cost going in will be worth the payout in subscriptions and overall brand awareness at the conclusion of the event/press kit release. In order to properly promote the event, there will need to be a budget plan that will be realistic to the overall cost of hosting a premier event, and also factor in the cost of the press kit creation and distribution. The main budgeting that will need to be addressed is revolved around the Orange is the New Black premiere event. Details as small as event signage and even napkins cannot be overlooked. Money is always a driving factor in brand promotion, and a detailed budget will be the only way to ensure there is an accurate way to measure the return on investment as a company (see appendix for full budget). Budgeting, Pricing, and ReasoningThe cost it will take to put on an event to draw enough attention and buzz for this series and Netflix as a whole will not be a small number, yet the costs were not drawn out to be astronomical either. The budget plan was derived in a way that paid for the potential quality of the event. Since there will be so many guest stars attending, and since the future promotions of Netflix and their original content are being introduced, it’s imperative to pay the cost for a larger event than small advertisement in the way that Netflix has done before. In this section, the costs will be broken down and supported with justifications on why every component builds a better purpose to our objectives. The budget has accounted for spending expenses in 6 different categories. These categories are Guest Costs, Venue Costs, Transportation costs, Food & Drink Costs, and Operational costs. Guest CostsFor guest costs we’ve factored in the pricing for having all 6 member of the Orange is the New Black present, in addition to the guest casts from other shows to be present on the panel. We’ve broken it down to 10,000$ per cast member to ensure their time spent to be there from 6pm-11pm is validated. The total cost of this runs at $120,000. The cost was estimated since the average salary of most of the actors per episode runs around 35,000, so for a guest appearance with less production and their already under contracts with Netflix, this price seemed to be reasonable. In addition, all other guest costs will be profitable since the event is set at 100 people with ticket pricing at $100, this will also help to offset the costs of having to pay for the time of the actors and actresses. Venue CostsThe rental cost hold our event at Victory Studios runs at $100,000 for the night. This is the moderate price of holding studio & live filmed events. Production costs simply for a 30 second commercial run at $1000, so to for a studio with the capacity to hold an event for two hours would be estimated to run around $100,000. However, the difference is that since it will be streamed online through Netflix for the viewing public, it still will be significantly cheaper than to have it run live on TV.

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Running along with Venue costs, we’ve calculated how much it will take to staff the event. What we feel will be comfortably conducive to the event running smoothly includes a staff of 15 security guards, 15 waitresses, and 15 personnel to set up and break down the event. We tried to come up with those numbers by justifying 1 staff member per 20 guests, and this is the number that resulted from that formula. Compensation per each staff member varies depending on their duties. We broke it down into shift times and compensation cost (see appendix) and came up with a total of $3,600 to cover all staff costs. Finally, decorations are included in the Venue costs category and we came up with a total budget of $2,620 to be able to get an orange carpet to roll out in the reception party honoring the guests, as well as table cloths, promotional banners, and program pamphlets for the guests to have. Transportation CostsThe costs budgeted here include the vehicles that will transport the cast member, in addition to the cost of the travel that will be required for the contest winners to arrive for the show. For the cast members to be transported to the show we thought it would require 5 SUVs so 2-3 could ride together, and more if they wanted too. We believe that cost of this would be around $1500, averaging around $300 per car to rent for the night. The plane ticket costs would be the most expensive of the travel costs, averaging around $6000 dollars, as an estimate of around $800 per ticket and the 10 winners. Finally, hotel costs to board them for one night are estimated at $1000, since average room costs go at $100. These estimates may be a little skewed, depending on if some winners are flying farther than others, which is why the budget is set at $6000, but could be less for those reasons. Food & Drink CostsThe food and drink costs will account for all things possible that will be necessary to make the event more welcoming. Appetizers, decidedly compared to standard catering costs, were budgeted at $2000 to ensure there will be a good amount to satisfy 100 people plus the cast members. The reason to have appetizers will be a financially low way to provide food without spending too much, but also having the ability for a lot of it to go around before the show, and since there’s not that much time, it’ll be better than providing dinner. The open bar, however, will be double the price of the food costs, budgeted at $4000 to serve that many people, after also comparing the run of having open bars at events such as weddings. This will help to keep the event lively though, and will signify good hospitality. Utensils will average around $120 since we will only be providing plastic cups, small plates, and napkins since the appetizers won't really require forks or spoons. Finally, to have two bartenders at $50 p/hr plus their tips, we plan to spend $200 for that. Operational CostsThis includes the production, construction, and sending the press kits. We estimate the construction to be around $100 based on the printing of the total packs, and around $50 to send them since we will be sending 50 of them to various media agencies and entertainment businesses as well. What-If-Not-Funded budgetIn the event that the original budget can not be supported, another budget has been made to focus only on necessary costs. The most significant change would be in the celebrity guest list for the event. The amount that was going to be given to the celebrities for attending the event will be reduced in the second budget. The payment to Ellie Kemper will remain the same because she will be hosting and playing a

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lrger role at the event. Kevin Spacey, Robin Wright and Deborah Ann Woll will all receive a 50% pay deduction and in turn, they will not be staying for as long of a time at the event. They will only be getting paid to appear on the “orange carpet” and to get pictures from the press. The Orange is the New Black Cast will be receiving the same amount of money as in the first budget because they will be interacting with the guests and will present at the event for the full 2 hours. The rental of the venue will have to go down to $90,000. If Victory Studios cannot meet this budget requirement, other locations will be taken into consideration. The secondary budget calls for 5 less waitresses, resulting in a $200 budget decrease. This is justified because with the two bartenders, 10 waitresses should be enough to accommodate the amount of guests. Scheduling - See Appendix C for Gantt Chart breakdown

The Evaluation Determines the Success of the Campaign

The campaign evaluation is essential to define its success and the value the campaign held. The means of evaluation is important to the client, to see if their money was well spent. Quantifiable outcomes will be easy to compare to old numbers and qualifiable outcomes will be used to determine people’s responses to the campaign. The overall outcome will measure the effectiveness of reaching our target audience of 18-35 year olds both men and women. The evaluation will essentially compare where the company was, to where it needs to be, and the campaign’s effectiveness in getting it there. Not only are the outcomes important but the processes used to reach those outcomes are equally important. We will now explain what we think are the best ways to reach those outcomes and why we chose that route. The objective reveals goals that need to be evaluated. The objective is the ultimate desired outcome for the campaign. Strategies and tactics are implemented to work towards meeting all of the elements of the objective. This campaign objective is designed to help create excitement for Netflix members about the release of the third season of Orange is the New Black. This campaign will generally inform current members of the upcoming third season release of Orange is the New Black. The goal is to increase viewership of the third season by 10% from the second season viewership by running the campaign will from January 1, 2016 to June 11, 2016. By completing a thorough evaluation, important information will be found to address how successful the campaign was and in what ways it benefitted Netflix. Did the campaign adequately inform current members of the third season? Did the campaign increase viewership by 10%? Did the campaign expand overall viewership of Orange is the New Black?

Evaluating the #LittleOrangeDress EventA survey will be issued to all of the attendees of the #LittleOrangeDress event immediately after the event. The participants of the survey will be issued the survey via email provided by their Netflix account. The questions on the survey will ask the attendees about their satisfaction of the event and how their attitude towards Season 3 of Orange is the New Black has been affected. A survey will also be issued to

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those who streamed the event live via their Netflix accounts. This email will be distributed to the Netflix members via the email address they provided with their account registration. Each of the attendees who won the social media contest will be individually interviewed in order to hear their feedback on the event and how it affected their attitude towards Season 3 of Orange is the New Black. The in-person interview will help get specific information and feedback from these attendees. The individual one-on-one setting will allow them to share their true opinions without fear of bandwagoning with others. Getting feedback from all the members involved with the event will keep the fans interacted with the Netflix brand. Reach analysis will be used to measure the amount of Twitter and Instagram posts using the #LittleOrangeDress hashtag. This will measure the amount of times the hashtag was used or messages were retweeted or reposted. By seeing how much exposure the hashtag received on social media, we can conclude that the event and upcoming season was both trending and talked about heavily on social media, or not so much. We will also be tracking to see if the social media contest attracts any new Netflix Twitter and Instagram account followers. We will have a team in place tracking notifications and the number of followers before the campaign begins vs. the number of followers post-campaign. Reach Analysis will be used to determine the amount of Netflix members that viewed season 3 and also the amount of Netflix members that streamed the #LittleOrangeDress event. The reach analysis will help evaluate the objective by determining if the viewership increased by 10% from the last season. Knowing the amount of people who streamed the live event will also help determine if the campaign event was successful in drawing attention to season 3 of Orange is the New Black. Reach Analysis Will Determine if Targeted Netflix Users Followed the Campaign Measuring the number of people reached by the target audience will be analyzed through the number of emails opened during the e-mail blast to Netflix subscribers, past and present. Netflix has the ability to email users who have suspended or cancelled accounts, as well as current account holders. Constant Contact will be used to track the number of e-mail that are actually opened from the blast. Constant Contact is an e-mail marketing tool that allows users to see how many people open, click through, and opt-out of the email being sent out[CT8] . These exact numbers will give great insight into how many people of our target audience are being reached, and how many are obviously uninterested in the event. Using Constant Contact allows for a very small margin of error, given the exact numbers shown in the feedback using the software. Frequency Analysis Shows Who Saw the Publicity Measuring the number of times the message about the event will be seen can be done by keeping record of each publication that picks up a story from the press kit that will be send out about the event. Each time a publication picks up the story, there needs to be research done on how many copies of that particular publication were in circulation the day the story ran. The number of impressions can be measured by the number of copies of each publication were circulate on the day the story ran. The press clippings can also be collected in order to keep track of the publicity. While not every copy will be purchased or read, the fact that it is out on the shelves and on the doorsteps of people around the world creates enough of a chance for an impressions for each copy to be counted. The margin of error for this analysis can be high, but keeping careful track of each publication

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who picks up event story will give a good indication of the general direction our impression numbers are trending in. Did the Word Get Out About the Campaign? There will be a press kit sent from Netflix to its publics containing a backgrounder, fact sheet, press release, invitation to the #LittleOrangeDress event, and a thank you card sent prior to the event will be distributed between Netflix and its publics.

In order to quantify the amount of press coverage the #LittleOrangeDress event will receive, there needs to be an understanding of how many publications were sent a press kit. A total of 50 press kits were sent out around the country, including all major city newspapers and major magazines that cover celebrity news. The press from celebrities will include interviews that news organizations like the Huffington Post and Buzzfeed will want to generate stories off of. It will also give the event credibility and clout within the entertainment community. Also, sending the press kit out to publications such as Vogue and People Magazine give the event a current and exciting buzz that is essential to the overall success of the event. By having such credible publications covering the event, there is no room for discussion on whether the event is worth the money. The personalized invitations to the #LittleOrangeDress will allow consumers to feel important. Earned media in the New York Times is exponentially less money than buying advertising space in the paper. According to the Wall Street Journal, it would cost an estimated $300,000 to run an advertisement on the front page of the New York Times. This number alone exceeds the estimated budget of the entire #LittleOrangeDress event, therefore the press kit literally pays for itself hundreds of times over in increased viewership and awareness of Netflix original content in general. Assigned Financial Value The Assigned Financial Value of this event, along with the creation of press kits, is one that will ultimately be more valuable to do than other traditional televised events, for a combination of reasons. First of all, by streaming the event on Netflix, there will not be the costs usually required to have a cable program have it live, it will be immediately accessed by viewers, and commercial free which will be another benefit to the audience. Streaming versus Television is obviously more cost efficient, to have it on a major network such as NBC or ABC would cost millions in production, and now the only costs necessary to put out are those for the venue and production there. I would estimate the savings for this to be around a million dollars since it costs around 5 million for NBC to get rights to air football games (Chemi, 2014). Either way, there is no cost to stream it on Netflix besides the cost of production.

Furthermore, the social media campaigns will attract interest by information concerning the contest to be spread via word of mouth between fans and their followers on Instagram, or Twitter, or those who pick up on the trending hashtag. to this and help measure viewership increase through the competition’s submissions and use of the hashtag during the promotion, and the event. The frequency of the message will be reach a larger audience in a more interactive way. By tracking the number of retweets or hashtags used, there can be a measure of the number of audience that we actually reach compared to our target of 600,000. There are 236 million active twitter users (Statista, 2015), and 300 million instagram users by 2014 (Statista, 2015). This is a total of a potential audience of 536 million, many of which who may already be fans, but those who aren’t will see the trending hashtags and hopeful popularity of the posts to

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such an extent that it will create buzz with little to no cost, versus other type of promotional advertisements like flyers, posters, or billboards, this will reach a larger audience at less of a cost, and at an more interactive way that will promote excitement. To have guests of OITNB and House of Cards, and Daredevil, the value of this will be to show a unified brand image of Netflix without having to advertise the shows separately, simply by discussions at the event, all three shows will be able to be advertised without any production of commercials or articles. Finally, by sending out press kits to media entities such as Entertainment News, The New York Times, NBC, ABC, and various other large corporations, there may be a response from them to have more interest in the event, and if enough buzz is generated, the media entities will cover the event since it has more impact.

Moving Forward The intention of the event is to result in escalated excitement for the premier of the show, while also attempting to increase the viewership by our goal of 10%, or 600,000 of the 6 million worldwide subscriber base Netflix provides services for. Following the streaming of the event, the premier of the series will air and during this time we will count the numbers of viewers who steam within the first week, and compare it to the numbers of previous seasons to measure the amount of increase.

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AppendixContact: Classic Solutions For Immediate Release

Telephone: [301.858.0924] Cell Phone: [410.588.6523]Email: [csolutions@netflix.com]

Netflix to Throw Orange Is The New Black Bash

Orange is The New Black Season 3 Premiere Party

Los Angeles, February 1st, 2016- Netflix presents the first ever Orange is the New Black season premiere party at Victory Studios in Glendale, CA. The event will take place June 4th, 2016. A limited number of tickets will be on sale to Netflix subscribers only. Subscribers should be on the look-out for an e-mail blast with more information on how to purchase tickets. The cast of Orange is the New Black will be on hand during the event for a meet and greet with 10 lucky ticketholders. Other big name stars of Netflix original content shows such as House of Cards will be on hand to interview the Orange is the New Black cast. Orange is the New Black star Taylor Schilling on the event “I cannot wait for the event, I think that we have some really great and exciting surprises for the fans, and I know that the rest of the girls are looking forward to meeting the fans and gearing up for season 3.” The event is open to the press and will include a walk down the “orange carpet,” a cocktail hour for distinguished guests, ticket holders, and cast members, along with the main event question and answer session.

### For more information about this topic, please contact [Classic Solutions] by calling [301.858.0924], or e-mail us at [csolutions@netflix.com].

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Netflix, Inc.100 Winchester Circle,Los Gatos, CA(410) 588-6523

Fact Sheet

· Orange is the New Black will the releasing its 3rd season during the summer of 2016.

· Netflix will be holding premier party event that will include the entire cast of Orange

is the New Black.

· The cast will be having a question and answer session with cast members from

other Netflix original content shows.

· Tickets will be sold through an e-mail blast to Netflix subscribers. Only 100 tickets

will be sold.

· Surprises and special contests will be held for Netflix subscribers who are not able

to purchase tickets.

· The event will take place on June 4st, 2016 at Victory Studios in Glendale, CA.

· The event will be streaming live on Netflix and will be available for 1 month after the

original air date.

Dear Cast, Crew, Sponsor, & Fans

Thank you for attending the Orange is the New Black Season 3 premier party! This year’s event

was exciting, interesting, and ground breaking for everyone here at Netflix. Our Orange is the

New Black cast had a fantastic time answering questions from you, the fans. Without our fans,

there would be no room for the fantastic actors and actresses we have on our original content

series’ to hone and perfect their craft. Your undying support for Orange is the New Black and all

of our original content shows is not overlooked, and can never be appreciated enough. Please

know that you are all a part of the Netflix community, and your opinions are valued and taken

into great consideration for the creation of future shows

We would also like to thank our sponsors for an incredible night. Without our sponsors, an

event as extravagant and exciting would not have been possible. The fans of Netflix deserve

the best and you all were able to deliver an unforgettable experience. The sponsors are often

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behind the scenes, and viewers do not realize how involved you really are. Thank you for

helping us create a night for the cast and fans that they will never forget.

To all of the cast and crew, thank you for putting your best foot forward, and always coming to

work with a drive to do more than your best each day. Without your passion for acting, and your

dedication to the storylines we produce, there would be very little room for success and growth

within our original series shows. We cannot say enough good things about the fans, the

sponsors, or the cast and crew. Thank you all for your dedication to Netflix, and your loyalty to

online streaming content. We value your opinions and hope that we can have many more

events like this one in the months and years to come.

Sincerely yours,

The Netflix Team

BACKGROUNDER

Scheduled to air in June 2016, the second season of Orange is the New Black marks the

continuation of another award winning Netflix original. Following the success of House of Cards,

the series marks the stories of a variety of characters in a women’s prison. The show centers

around Taylor Schilling’s character Piper Chapman, in which we watch as she accumulates to

the reality of what a women’s prison is really likes, and strays away from the life she lived before

she entered the prison. Orange is the New Black has continuously received positive reviews

Netflix began coming out with original content recently, and from its Orange is the New Black,

and House of Cards has both gone on to win multiple Golden Globe and Emmy Awards. Orange

is the New Black alone has received a Primetime Emmy award for outstanding casting for a

comedy series, a screen actors guild award for outstanding performance by an ensemble in a

comedy series, People’s choice award for favorite ‘dramady’ and numerous others. With all this

in mind, the thirdseason has been in much anticipation by the vast numbers of Netflix’s

audiences.

Netflix will continue with a more seasons of this show and due to its success will also be

building upon its original content platform. This will including the upcoming shows such as

Daredevil, Unbreakable Kimmy Schmitt, Bloodline, Wet Hot American Summer, F is for Family,

Grace and Frankie, Marseille, Sense8, among multiple other shows in production with a large

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spending budget from Netflix. Netflix is investing in it’s upcoming original content immensely,

and hopefully the success and introduction of the thirdseason of OITB will generate further

excitement for what is to come from this streaming giant.

Appendix A – Public relations campaign materials

 

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Appendix B – Budget figures

Venue Elements Cost

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GUEST ACTORS

Kevin Spacey 10,000

Robin Wright 10,000

Charlie Cox 10,000

Deborah Ann Woll 10,000

Rosario Dawson 10,000

Kimmy Scmitt 10,000

OITB CAST 10,000

Taylor Schilling 10,000

Laura Prepon 10,000

Uzo Aduba 10,000

Natasha Lyonne 10,000

Taryn Manning 10,000

Kate Mulgrew 10,000

Total Cost $120,000

STAFF (1 per 20 guests)

Security 15 $35 p/hr $2,100

Waitresses 15 $20 p/hr $600

Set up crew 15 $15/ phr $900

Rental Cost of Venue $100,000

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(Victory Studios)

DECORATIONS

Orange Carpet $2,500

Table Cloths $120

Sponsored Promotions $800

FOOD & DRINK

Appetizers $2,000

Open Bar $4,000

Utensils (Napkins, plates, Ext) $120

Bartender 2 $50 p/hr $200

TRANSPORTATION

5 SUVS $1,500

Hotel Costs $1,000

Plane Tickets for Winners $6,000

Party Bus for VIPS $1,545

Press Kit Cost ( Fact Sheet, Invites,

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Backgrounder, Press Release, Thank You Letters)

Construction Cost $100

Mailing Cost

$50

TOTAL COST $255,000

Appendix C - ScheduleItinerary for Orange is the New Black season 2 premier #LittleOrangeDress event

All guests are asked to their favorite orange outfit to fit the theme of the event. The event name is #LittleOrangeDress

Guests are asked to arrive before the start time of the event, the event will begin promptly at 5pm on Saturday June 4th, 2016, which is when the online stream will also begin.

5pm-6pm: Orange carpet segment. Everyone attending the event, celebrities and attendees will be walking the orange carpet and will have multiple photo introduced. Everyone is invited to wear their favorite orange dress/outfit. A Netflix original series celebrity from another show will be the host on the carpet.

6pm-7pm: Reception. Not streamed live. Drinks and hors d'oeuvres will be served. No full meals are provided. The look-alike contest winners will have a meet and greet with the celebrity they won the contest for. These meetings will be photographed and video recorded to show later on.

7pm-9pm: Streamed event with panel and cast. Attendees will take seats in audience for the show. The panel of interviewers for the event will be popular celebrities from other popular Netflix original series, Kevin Spacey, Robin Wright, Charlie Cox, Deborah Ann Woll. Due to time and budget constraint, although the entire cast of OITNB from all the seasons are invited, only the 6 main characters from all the seasons and from the Instagram contest will be interviewed, Taylor Schilling, Laura Prepon, Uzo Aduba, Natasha Lyonne, Taryn Manning, Kate Mulgrew.

7pm-8pm: Celebrities will be individually brought onto stage and introduced. Old and new clips of some of their highlight scenes will be played on the screen behind the stage. After all 6 celebrities are introduced the panel will asked the cast pre-written

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questions. While the pre-written questions are being asked/answered, everyone watching will have the chance to tweet in questions they have that may not have been asked, by tagging Netflix’s twitter in their post8pm-9pm: After pre-screening all tweeted in questions, the second hour will consist of answering the best/most appropriate questions asked, while showing the actual tweet sent in up on the screen. Also the look-alike contest winners will be brought up and introduced and their meet and greet from the cocktail hour will be shown on the screen above, pictures and video clips.

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