Any PR is good PR? Think again.
Recent years have seen the old adage, “any PR is good PR” disproven on a regular basis, and the 
story of Seaworld in the wake of “Blackfish”, the documentary that cast a dark light on the park’s operations, is another prime example.
SeaWorld is now reporting a third-quarter 2014 net income that’s down 28% from the previous year due to lowered attendance, an announcement that dropped share price by over 10% nearly instantaneously.
SeaWorld CEO and President Jim Atchison addressed investors in the report with a rather general statement of optimism:
“Consistent with the update we provided in August, the attendance trends the Company experienced in the latter part of the second quarter continued into the third quarter. Clearly 2014 has been a challenging year, but I am confident we are taking the necessary steps to address our near term challenges and position the Company to deliver value over the long term,” said Jim Atchison, CEO and President of SeaWorld Entertainment, Inc. “We are executing a cost savings plan that is expected to deliver approximately $50 million of annual cost savings by the end of 2015. At the same time, we are adjusting our attraction and marketing plans to address our immediate top-line concerns. While we recognize that we are in the early stages of these initiatives, we firmly believe these actions will enable us to overcome the current challenges we face and enhance our competitive standing.”
That one documentary could so powerfully affect a firmly established brand should come as a wakeup call to others who are sitting by complacent. Things may be running smoothly now, but that’s no guarantee you won’t be thrown into crisis at any moment, and if you are you’ll want to be prepared. SeaWorld undoubtedly knew it had vocal critics, but it clearly failed to adequately plan for or prevent the type of damage “Blackfish” has done. In our opinion this was an easily predictable crisis, and one SeaWorld should have been positioned to handle. Instead, its shares have lost over 50% of their value, and continue to slowly slide into the deep.
The BCM Blogging Team
https://www.bernsteincrisismanagement.com