Oct 302009

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visit Bshs 373 week 2 dq 2 Dave Carroll’s guitar got broken on a United plane flight. If you watched the video, you’ll know he got the run around before being told NO. So he wrote this song, recorded it, made a video and popped it up on YouTube.

  • 3 million views within 10 days, 5 800,000  views now – and 36,500 ratings (5 out of 5), 22,700 comments. (Mashable)
  • In Google search, just under 20 million returns for “United Breaks Guitars” (Google)
  • Number one downloaded song on iTunes (Toronto Star) after only a week
  • When I scanned through, BoingBoing, Mashable, The Huffington Post, and traditional media like the Telegraph (UK), Rolling Stone, LA Times, and Australia’s Crikey, Sydney Morning Herald, Brisbane Times, etc  had picked up in the story.
  • $180 million dollars lost in share price. (see later)

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it’s borderline silly to suggest that a something like a cheeky web video could move such a prominent stock 10 percent. United is an enormous, struggling company, with a stock price that has been on a downward trend since last fall. In other words, it’s a typical airline stock.What do you think? Is there any way Carroll’s song could have cost United $180 million? What kind of damage did it do to United’s brand? How do you value bad PR like this?

My response? Apple lost 4.6 billion dollars market cap when Engadget blogged something negative withing minutes of the blog post. Not exactly the same as a silly YouTube video but you can never be sure of the market…

Apple stock engadget chart

C.O.I – the cost of sitting there saying that social media is for people with too much time on their hands, and that no one need  pay attention to Loser Generated Crap. A dangerous place to sit, indeed.

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  14 Responses to “COI: Cost of Inaction United Breaks Guitars”

  1. COI: Cost of Inaction United Breaks Guitars | Laurel Papworth … http://bit.ly/2E5d8k

  2. RT @SilkCharm: how a YouTube video cost United Airlines $180 million http://bit.ly/4m45qC COI: Cost of Inaction of social media

  3. Cost of Inaction cost 180 million $? http://bit.ly/1hscev

  4. RT @SilkCharm how a YouTube video cost United Airlines $180 million http://bit.ly/4m45qC

  5. COI: Cost of Inaction United Breaks Guitars http://bit.ly/23RMFG #sCRM #PR #marketing

  6. how a YouTube vid cost United Air $180 million http://bit.ly/4m45qC COI: Cost of Inaction of social media = real world $$ (via @silkcharm)

  7. RT @BostonRS: RT @SilkCharm how a passenger's YouTube video cost United Airlines $180 million http://bit.ly/4m45qC #SMROI #socialmedia

  8. Cost of Inaction: United Breaks Guitar, Mad Man Makes Song and Posts to YouTube- Gets 3 Million Views in 10 Days. http://bit.ly/3scYFA

  9. […] traded company to find out your stock “allegedly” lost $180 million dollars in value?  The result of a song that went viral on Youtube.  You didn’t see it coming because you were “too […]

  10. RT @SilkCharm COI: Cost of Inaction United Breaks Guitars http://bit.ly/3scYFA

  11. Brilliant synopsis of a brilliant ‘customer fights back’ story, Laurel. Haven’t seen anything as creative & damning since Jonah Peretti took on Nike’s sweatshops in the early noughties.

    The major challenge for organisations is that their processes have been established to nullify / eradicate customised human intervention. Unfortunately for them, that’s what social media is all about.

    The aircraft carriers are starting to turn but it needs enlightened people at the helm.

  12. $180 millon dollar guitar 🙂 http://bit.ly/3RJDGz (via feedly)

  13. […] your financial services/advisor is not using social media, sack them. The Cost of Inaction is too […]

  14. […] “United Breaks Guitars”? The PR disaster for United that reportedly knocked $180 million off the airline’s capitalisation? (no I don’t take that number too seriously). Well, […]

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