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Using Twitter to disseminate material corporate information Netflix which recently dodged a bullet from that SEC over FaceBook posting.
It's -- that you -- use Twitter to disclose this kind of stuff that the SEC -- now given its blessing that Casey -- a strategic communications CEO Jeff Corbin.
Doesn't think that such a great idea Jeff why is that what's wrong with that give more transparency and more channels for announcements there's.
There's nothing wrong with transparency the issue is if you're gonna come out and say you're gonna do something then you should do it and that's precisely what Netflix did not do they said that they were going to use Twitter they said that they were gonna use Reed Hastings.
FaceBook page to -- material information they put out the first quarter earnings and they didn't.
And it was days after the SEC had given its blessing right because they've started this whole row.
When Hastings went up on the FaceBook page and today guess what we have over a billion dealings in the last couple of months and the SEC argued this was material.
So what he would -- -- -- -- about whether they should go after this or not.
We're we're we're saying that companies should establish and policy social media investor relations policy articulated.
In a filing with the SEC which Netflix stayed.
And then stick to those.
On methods the various channels -- -- that you said you're going to articulate it into sending material information should -- use just one outlet like Twitter and make it that you're chosen or should do all six or seven or whatever you know there's there's hundreds of channels out there right now a company needs to do an audit determined where it wants to engage with its investors and then articulate those if -- 35710.
It doesn't really matter so long as they.
-- all them all the time do you think it's a bad idea for any publicly held company today.
To not use social networks to get out the message for this SEC style information I think I think that.
Social media it's it's here it's here to stay.
-- the question is how are companies going to embraces the SEC said it on April 2 that it's OK to use social media so I think companies need to figure it out and it's a good idea so long as it's used properly.
As the FCC yet told us how -- delineate between the posts of Reed Hastings the person.
-- Reed Hastings the CEO of Netflix or should we assume that every post he makes.
He's the CEO of that -- and that's precisely the issue that exists the SEC only made a statement that social media can be used by public companies in there in -- dissemination material information.
On they didn't say which channels used how to determine which channels you'd.
And Reed Hastings they in in Netflix the laid out six different channels and on didn't use them in them and their first in the bush did use a single wanted to use a single one would do you know why.
I I have no idea I'd actually written to the SEC ever intended Netflix asking them what what's up with -- with no explanation as yet not yet.
Now once we've made social networks -- legitimate SEC disclosure path.
Do we have a new problem when non CEO employees -- say -- Netflix and that putting up posts of their own.
And that might be about the business and how great my sales quarter was right well that's exactly where work with companies on right now is to.
One -- with -- policy and then make sure that it is communicated not only to the employees but also to the board of directors and everyone else that's affiliated with the companies because.
There is a potential for problems.
This is just an.
An investor relations nightmare is that you mean you guys need to control the message and control the outlets.
And instead it's just -- ring -- I would say it's not a nightmare is -- one of the most exciting times we've had in our industry in over a decade so now it's just a function of figuring out how to use the channels taking the message.
Articulating where the message should be -- disseminated through.
And and sticking to an end and drive and appear -- forgive -- all that advice on how to do all that all right thanks for being analyst Jeff Korman today thanks.
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