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
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A regional government proposes a tax on streaming revenues that increases costs by 5% for Netflix. As PM, propose product, pricing, and commercial options to accommodate this tax while minimizing subscriber loss and explain the factors you would consider when deciding to pass tax to consumers vs absorb it.
EasyTechnical
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As a PM, explain the difference between gross margin and contribution margin in the context of Netflix. Which one is more useful for short-term product decisions about tiered pricing or ad monetization?
MediumTechnical
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Netflix is testing a feature that suggests rentable movies within the app for titles not in its catalog. As PM, analyze cannibalization risk vs incremental revenue, and design an experiment to determine whether rent-suggestions increase total revenue per user.
MediumTechnical
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Compare the cost structure of streaming infrastructure (CDN, encoding, storage) versus content costs. As a PM, identify three product decisions that can materially reduce infrastructure costs without harming UX.
EasyTechnical
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Define LTV (lifetime value) and CAC (customer acquisition cost) for a streaming service. As a PM responsible for growth, outline a high-level experiment plan to improve LTV/CAC ratio by 15% over 12 months.
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