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.
HardTechnical
0 practiced
Design a time-series forecasting pipeline to predict monthly churn rates for Netflix, addressing non-stationarity, holidays, major content releases, and structural breaks (for example, pandemic effects). What models and covariates would you use, how would you detect and handle regime changes, and how would you validate and monitor model drift over time?
MediumTechnical
0 practiced
Describe an analytical approach to measure the profitability of producing an original Netflix series. List required data sources (production and marketing costs, viewership by user, subscriber acquisition attributable to the title, incremental retention, merchandising/licensing revenue), key metrics to compute (cost per hour watched, incremental subscribers, payback period, ROI), and a formula to estimate ROI over a 3-year horizon. Explain how you would identify incremental subscribers attributable to the show.
HardSystem Design
0 practiced
Design an automated reporting pipeline to deliver daily Netflix KPIs (MAU, DAU, monthly subscribers, churn, ARPU) to stakeholders. Describe data sources, ingestion (batch vs streaming), transformation steps, metric computation layer, storage (data warehouse), visualization layer, monitoring and alerting, data quality checks, and tooling choices (example: Kafka, Airflow, dbt, Snowflake). Discuss trade-offs you would consider.
MediumTechnical
0 practiced
Multiple Netflix accounts may belong to the same household. Given these tables:Explain an algorithm and write SQL or pseudocode to cluster accounts likely belonging to the same household (use shared IP history, overlapping devices, email domains, or billing address if available). Discuss risks of false positives and validation strategies.
accounts(user_id, email, created_at)
devices(device_id, user_id, last_seen_ip, last_seen_at, device_type)MediumSystem Design
0 practiced
Design a Tableau dashboard to monitor content ROI and title performance for Netflix originals. Specify the datasource tables required, essential calculated fields (e.g., cost_per_hour_watched, incremental_subscribers, payback_month), example filters, and how to handle large datasets (extracts, aggregation tables, or live connections). Describe a mock wireframe layout and performance considerations.
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