Do you realize how social media affects everything that we do more than we think (or want to believe), and that includes our businesses as well.  Here’s a tale that might make you think twice (hopefully) before making any major rebranding moves…

When Netflix CEO Reed Hastings blogged his apology to Netflix subscribers earlier this week and announced the split of the streaming service, which will retain the name Netflix, and the DVD only service, which will now go by Qwikster, he forgot one thing.  That one thing: to make sure that the name that he’s switching his multimillion dollar company to is secured across all of the social media platforms that he plans to use to market the new service.  Oops.

Following Hastings’ blog, if you were curious what Qwikster had to offer and did a quick Google search, you may have found an established Twitter account for @Qwikster.  You may have also found that the account belonged to Jason Castillo, a foul-mouthed, Elmo-loving pothead with a propensity for being “bored as shyt” [sic].

What’s most compelling is the interest that the rest of the Twitter community has taken in Castillo.  When Mashable reported on the story Monday morning Castillo had a little over 500 followers.  By 4:30 pm Monday afternoon that number had more than quintupled to 2,796.  This morning (Tuesday) it was 10,346.  Not exactly the kind of marketing campaign that Hastings, Netflix, or Qwikster’s newly appointed CEO Andy Rendich had likely anticipated.

What’s probably going to happen is one of two things: 1) Jason Castillo is going to try and sell his @Qwikster handle to whom he believes to be Netflix CEO Reed Hastings and Twitter will cancel his account because according to their Name Squatting Policy, “Attempts to sell, buy, or solicit other forms of payment in exchange for usernames are also violations and may result in permanent account suspension.”  Or 2) Qwikster will adopt a different username like @QwiksterDVD because it’s really unlikely that Castillo will just hand it over.  *His friend, and apparent business partner, @SoccerIsLifegc7 tweeted “We’re not talkin til the offers get in 6 figures.”

It’s sad to see what’s happening to Netflix.  Loyal customers are cancelling their subscriptions, stock has dropped nearly 50% since their price adjustment announcement, and now this Qwikster debacle.   The point?  Do a little research.   Secure your brand.  It seems as though Hastings is making some hasty decisions that are having a negative impact on the future of Netflix.  There are likely more people following @Qwikster now because of the mishap than will actually sign up for the DVD service going forward.  But it’s not only big business that needs to beware.  Securing your brand on all fronts is essential for avoiding an embarrassment like the one Netflix has endured.  You want customers to know and trust your brand for being reliable and reputable.  In other words, before you launch your new pizza joint, UPS (Ultimate Pizza Service), make sure that acronym isn’t already taken…

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