Will the House of Cards Stand?

Netflix released House of Cards Season Two this past Friday. Like other avante garde TV series from disruptive non-traditional networks, it created quite a stir. But does the show owe its buzz more to Netflix’s strategy of releasing a whole season at once than people actually watching the program?

Let’s be clear, Netflix generates a ton of publicity through its whole season release strategy (hat tip: Andy Sternberg). Even President Barack Obama is excited about the Washington drama.

hbo-netflix-showtime-event_chartbuilder3

Given that word-of-mouth driven online buzz fuels as much if not more viewership than actual network promotions today, one could argue that House of Card‘s PR strategy, while buzzworthy may work against it in the long-term. Without a weekly episode, the program can’t maintain buzz through a season or a year.

Also what if competitors decide to follow suit and release whole seasons at once? Beyonce followed a similar surprise strategy with her most recent album. Will other television producers follow suit? Certainly, the strategy looses its sheen when others partake in the same approach.

But I don’t think Netflix has too much to worry about on that front. I’m not sure other networks will be quick to give up their weekly fix of viewer driven buzz. Let’s take a deeper look at some data.

Chatter versus Viewers

House of Cards Comparison

The above Google Trend analysis shows that other relatively well known newcomers from non-traditional networks are far outpacing Netflix’s House of Cards when it comes to search. The blue line is the TV show House of Cards, yellow is PBS’s Downtown Abbey, red is AMC’s The Walking Dead, and green is HBO’s Game of Thrones.

When people want to find out more about the show, it’s clear that the latter three shows are all benefitting from season long buzz with spikes depending on specific episodes (the massive green spike is the infamous Game of Thrones Red Wedding episode). House of Cards‘ social buzz and media hype is not translating to people seeking out the show through conventional search.

Tweet Chatter

The above chart measured the shows’ official hashtags on Sunday via Hashtags.org. the three shows that were active that weekend — House of Cards, Downton Abbey and The Walking Dead.

House of Cards enjoyed steady traffic compared to the spikes enjoyed by its competitors. In total, it doubled Downton Abbey‘s tweets for Sunday p.m., and achieved about 2/3 of The Walking Dead‘s. However, Monday traffic saw a significant drop, in spite of the federal holiday.

HouseDrop

House of Cards word-of-mouth buzz is not sustaining. I imagine as the weeks pass and the season release buzz fades, #houseofcards chatter will continue to lessen while its competitors will chug along with their weekly spike.

You can infer how the numbers might work out over a period of months. The other shows benefit from weekly releases in the overall cumulative total, while #HouseofCards will level out until its next season release.

It’s not that House of Cards isn’t a good show that may grow in viewership with more seasons. But its release strategy seems to be more of a gimmick than a sustainable method that can be applied across the entire media market. We have seen PR generate tremendous buzz in the past without producing business results. This might be another example.

Even Netflix may recognize the House of Cards release paradigm is not sustainable. The video on demand service will move to a gradual release strategy with its first kids program, Turbo Fast.

It doesn’t help that only 29 million people subscribe to Netflix with more than 20% of subscribers living abroad. But then again, HBO ony has 28 million.

The difference? HBO lets non-subscribers buy individual episodes as do PBS and AMC. House of Cards requires a Netflix subscription, which limits access to those who might be interested in the show sans the full service commitment.

What do you think about the House of Cards buzz?

Mean Tweets

Have you seen Jimmy Kimmel‘s Mean Tweets skit yet? I finally did when the NBA version came out a week ago (below).

The tongue-in-cheek celebrity response to Twitter’s raucous social media culture pierces through a lot of hubris. Mean Tweets says what many of us involved in online community management feel.

Life as an online community manager, blogger or personality today requires dealing with some idiotic nastiness that people spew on social media
Continue reading “Mean Tweets”

If You See a Problem, Fix It

fixing my broken heart
Image by Minnie Photography

“If you see a problem, fix it,” said Peter Diamandis, X-Prize Foundation Founder and serial entrepreneur said last month in Wired.

Diamandis responded to the very common belief in Murphy’s Law that if something can go wrong, it will.

This attitude of fixing problems makes for the heart and soul of the best business and marketing strategies. It’s no coincidence that Diamandis is a successful serial entrepreneur.
Continue reading “If You See a Problem, Fix It”

5 Common Actions Competitors Take

Marketing extends beyond stakeholders and organizations. Although companies and nonprofits like to pretend they operate alone in an industry, competition exists even if its just for the stakeholder’s time and money. If a marketer does their job well, and the product, service or solution is met with a warm reception, invariably the competition responds.

Moving forward, there are some common competitive responses that you can expect. Here are five of them:

1) Pretend You Don’t Exist

This out of all the responses is the most short sighted and foolish response. The ostrich approach — at least publicly (they certainly talk about you behind closed doors) — kids no one. Customers know there are alternatives, and so does the media and bloggers.

No one thinks the company or nonprofit operates in a vacuum, so when your competitor acts like that, it causes them look, like, well, marketers. It doesn’t mean anything other than people view communications from their organization to be completely transactional or brand related. Customers are less willing to trust them.

Further, it’s hard to develop industry leadership when a company doesn’t acknowledge the ecosystem, even in a general way. Apple rarely talks about HP or Dell, but it certainly acknowledges and talks about other PCs and smartphones. Car companies discuss industry accolades, which is smart, because it puts their product within a competitive context.

2) Copy Your Offering

When a company does really well, a common competitive response is to ape the product and offer the same product or service, often with less success. After Amazon launched the Kindle, Barnes & Noble offered the Nook. When Cirque du Soleil revolutionized big top entertainment, other circuses stole elements from their shows like the ribbon dance.

Holding first place is a very strong position for long-term success. In a strategic sense, first is the position of high ground. It’s always good to have established market share when this happens, but it can still be quite disconcerting.

There are instances when a company like Netflix or Google rises up and wrestles the market away, usually through some sort of technological innovation. Sometimes companies are caught in a price war.

The key here is to not necessarily over-react to the competition. Rather, to continue innovating on the product or service offering and extend market leadership. Don’t rest on your laurels.

3) Trash, Sue and Undercut

Smartphone bar.
Image by MJ/TR

Google recently purchased Motorola Mobility to acquire its patents in an effort to strengthen its case against Apple, who is suing the search giant for copying the iPhone iOS with Android. Other common hardball acts include talking poorly about the competition publicly, privately, stealing (er, hiring away) their talent, blocking distribution, and undercutting pricing to seize market share.

These are the tactics of war in the market. You have to be able to defend against them, not necessarily with direct engagement, but certainly by responding with value to your customers.

While these tactics are inevitable, they almost always make the market harder to work within, and can reduce customer trust sector-wide. These tactics do not grow the general market in any obvious way.

4) Go Toe to Toe

In an established market like car insurance where offerings are very similar from company to company, it is not uncommon to see advertising that directly positions a company against its competitors. This is a common tactic that Sprint takes with Verizon and AT&T with its data and service plans.

There’s not much you can do here other than to clearly state why your product is better than their’s and to engage in customer service and loyalty programs. This is about avoiding customer churn by bettering your total experience.

In the competitive wireless market, Sprint is a distant third currently, a gap that has increased over the past decade in large part because of the customer service issues the company experienced after acquiring Nextel. Having resolved many of these issues, it is now struggling to rebuild that marketshare. In a highly commoditized market, non product specific points like service can make a great difference.

5) Leapfrog Your Offering

Honda Civic
Late 1970s Honda Civic by dave_7

Last, but not least is when a competitor responds by offering a product or service that is significantly higher quality, more cost effective or easier to use than yours. While you might have the higher ground, this type of innovation in a new offering creates green fields for your competitors. Customers flock to them.

Consider how Japanese companies beat their U.S. counterparts in the electronics and the automotive sector in the 70s and 80s by offering higher quality products for lower costs. The result was incredible losses of marketshare and reputation. Google beat Yahoo by offering a superior search algorithm.

In this instance, speed is critical. Loyal customers will stick with your brand, but only if you are able to match or better the offering quickly. Unfortunately, when faced with a paradigm shift, most leading companies fail to respond, comfortable in their way of doing business. And thus new brands seize market leadership.

What are some common responses you see from competitors?