Bilibili: Breaking Promises and Retaining Reputation
(4 pages of text)
Case (Pub Mat)
Since 2009, Bilibili Inc.'s Bilibili.com (the B-site) had been an online video site providing services to fans of anime, comics, and games culture. After several years of effort, it had become a popular Chinese site for danmaku content and commenting technology. The B-site had a good reputation because of its excellent user experience: users did not need to watch endless pre-roll ads before enjoying video content because, in 2014, the B-site had promised that it would never use pre-roll ads as part of its profit model. However, in spring 2016, an important content provider, TV Tokyo Corporation, renewed its copyright contract and added terms requiring the B-site to add pre-video ads on anime series from TV Tokyo, which contradicted the B-site's promise to its users. How should the B-site address this public relations crisis and retain the trust of its users?
This case is suitable for an undergraduate- or graduate-level course in entrepreneurial management or crisis management. This case outlines a typical and positive way to deal with a public relations crisis. Students will become familiar with the online video industry and its profit models. After working through the case, students will be able to do the following:
- Describe the online video industry and its profit models.
- Analyze the relationship between a company's reputation and short-term economic benefits, and explain how to balance these two aspects of a business.
- Identify the 3T principles of crisis management, and analyze the case of an online video site based on these principles.
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