Netflix: Reputation and Familiarity
In recent years, Netflix has grown exponentially. In 2018, it was elected by Reputation Institute as the brand with the best reputation in the United States. In the Top 10 of that same list, there are companies as different and with as much history as Lego or Rolex.
So what makes a relatively new company like Netflix take first place in this ranking?
The Reputation Institute points to some possible explanations and one of them is that brands shouldn't be afraid to take very clear positions in certain situations.
The sexual harassment scandal with Kevin Spacey is one of the examples mentioned. At the time, Netflix had two options: support one of its biggest stars or, regardless of the consequences, fire the American actor. The company had no qualms about choosing the second option. The result seems to be that the public appreciates brands taking firm and coherent positions, regardless of the situation in question. In another situation, Jonathan Friedland, Netflix's CCO, was caught using inappropriate language in a meeting. Netflix didn't hesitate and fired him immediately.
This kind of transparency and coherence are values that companies should follow. The level of information available to the public today is very high and data shows that when the relationship of trust is broken, consumers are unlikely to trust a particular brand again. The case of Netflix is an excellent example of this.
The Reputation Institute also states that the fact that Netflix has been able to transform itself from a mere repository of content to a producer of (disruptive) content is also decisive in achieving this result.
In short, the company now enjoys an enviable reputation. Consumers seem to have created a very strong emotional relationship with the American company and this will be something that the competition will find very difficult to match.