Netflix Strategy: Set and Sequence Its Goals for the Coming Quarters and Years
Company: Netflix
Role: Product Manager
Category: Product Design & Strategy
Difficulty: medium
Interview Round: Other
Suppose you are a product manager at Netflix and leadership asks what the company's goals should be over the short and near term. Recommend a set of goals, explain why each one matters now, say how you would measure progress on each, and decide which comes first.
```hint Start from how Netflix makes money
Before naming goals, sketch where Netflix's revenue growth comes from today and what most threatens it. Each goal should be an outcome you can measure, and the earliest goals should set up the later ones.
```
### Clarifying Questions
- Should "short term" and "near term" be treated as two horizons, for example the next few quarters and the next couple of years, or as a single horizon?
- Are these goals for Netflix as a whole, or for one area such as the streaming product, advertising or games?
- If growth in members, revenue per member and profit conflict, which should the goals favor?
- Should the goals weigh particular markets, such as mature markets like the US against faster-growing markets where prices are lower?
### What a Strong Answer Covers
- A grounded view of Netflix's position: business model, growth levers and competitive threats, with any figures stated as estimates.
- A small set of goals framed as measurable outcomes, clearly separated by horizon.
- A rationale tying each goal to members, revenue or content economics, with a clear priority order.
- Metrics for each goal, plus guardrails against hitting one goal at another's expense.
- Trade-offs and risks of the chosen goals, and alternatives considered and set aside.
### Follow-up Questions
- Leadership asks you to cut your list to one goal for the next year. Which do you keep, and why?
- How would you tell whether a price increase in a mature market helped or hurt Netflix?
- Short-video apps compete for the same evening hours. Should Netflix respond in the short term, and if so how?
Overview: A product strategy question asking which goals Netflix should pursue in the short term and over the next few years. It tests understanding of a subscription streaming business, turning strategy into measurable goals, prioritizing among competing growth levers, and reasoning about trade-offs and risks.