Evaluate Factors Before Renewing TV-Series Contracts
Company: Capital One
Role: Data Scientist
Category: Analytics & Experimentation
Difficulty: medium
Interview Round: Onsite
##### Scenario
You are advising the CEO of a TV-series company on whether to renew a 2-year contract and evaluate options for two productions: The Analyst (Series A) and Shark Bank (Series B).
##### Question
Which qualitative and quantitative factors would you assess before renewing a new 2-year contract for the shows? Given cost-revenue data for The Analyst and Shark Bank, calculate each show’s total 2-year profit. Propose data-driven actions that could increase the profitability of The Analyst. If the company is considering selling The Analyst, what additional information would you request before making the decision? Assume after 2 years The Analyst’s incremental profit is $0 and Shark Bank earns $22 M. Selling The Analyst loses 1.5 M viewers worth $32 each. What is the minimum sale price that makes the company indifferent? Another studio offers $60 M for The Analyst. Based on your analysis, would you recommend selling? Explain.
##### Hints
Estimate cash flows, lost-viewer value, opportunity costs, and compare NPV across keep-versus-sell scenarios.
Quick Answer: This question evaluates a data scientist's competency in financial modeling, valuation, and decision analytics for content assets, including profit calculation, viewer-value estimation, opportunity-cost comparison, and due-diligence information needs.
