Netflix Business Model, Revenue & Cost Structure Questions
In-depth analysis of Netflix's business model, revenue streams, pricing strategy, content costs, operating expenses, and profitability drivers, along with competitive positioning and platform economics within the streaming industry.
MediumTechnical
0 practiced
Scenario: Netflix implements a password-sharing crackdown in a test market. As a BI analyst, outline the analyses you'd run to measure the impact on revenue and retention. What signals would you build to identify secondary users or households, what cohorts would you compare, and how would you separate enforcement effects from seasonality?
MediumTechnical
0 practiced
Write a SQL query that produces a monthly cohort retention table from subscriptions (user_id, start_date, end_date). The output should have cohort_month (YYYY-MM) as rows and retention at months 0..N as columns showing percentage of users from that cohort still active in each month. Describe any window functions or joins you use and assumptions about reactivations.
HardTechnical
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Hard technical: Design and outline an algorithm (pseudo-code or Python) that detects significant cohort-specific increases in churn compared to historical expectation. Inputs are cohort_id, month, observed_churn_count, cohort_size, and historical churn rate for same cohort age. Specify statistical test, minimum sample thresholds, how to adjust for multiple comparisons, and how to avoid false positives from seasonality.
MediumBehavioral
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Behavioral: Tell me about a time a dashboard or report you built directly changed a business decision at your company. Describe the metric you introduced or clarified, how you validated it, how stakeholders used it to change behavior or strategy, and what the measurable impact was.
MediumTechnical
0 practiced
Implement in Python a function compute_ltv(arpu_monthly, retention_rates, discount_rate=0.0) that calculates the expected Customer Lifetime Value (LTV) for a monthly subscription product. arpu_monthly may be a scalar or a list of monthly ARPUs; retention_rates is a list with retention probability at each month. Describe assumptions your function uses such as when to stop the summation and how to handle varying ARPU.
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