Go/No-Go Strategy Call on Netflix Entering Podcasting

You are a product manager at Netflix. Should Netflix launch an app for podcasts? Give a recommendation and the reasoning behind it. ```hint Start from what podcasts would do for Netflix Before judging the podcast market, decide which Netflix goal a podcast product would serve, then compare a separate app with other ways of reaching that same goal. ``` ### Clarifying Questions - Does "app" mean a separate product, or may I also consider podcasts inside the existing Netflix app? - Are we talking about audio-only shows, video podcasts, or both? - Is the aim to keep current members from cancelling, to reach people who do not subscribe, or to add advertising revenue? - Should I assume a global launch, or can I start in one market? ### What a Strong Answer Covers - A Netflix goal the decision is judged against, and the alternatives to a standalone app - A realistic view of the podcast market: the incumbents, where and how people listen, creator economics and how podcasts earn money - Netflix's advantages and gaps for this move, such as its original shows and fan base against its lack of an audio listening habit and creator relationships - A clear recommendation with the test, metrics and decision rules that would confirm or reverse it - Risks such as brand dilution, cannibalized viewing, content costs and distraction from the core service ### Follow-up Questions - Leadership insists on a standalone app. What is the smallest test you would run, and what result would make you shut it down? - How might podcasts affect Netflix's ad-supported plan, and could they weaken the subscription business? - If a large podcast platform offered a partnership instead, how would you weigh it against building your own?