Price a new streaming subscription competing with Netflix, Hotstar and YouTube

Quick Overview

A pricing prompt for a new subscription streaming service that competes with Netflix, Hotstar and YouTube. It tests scoping the market and launch goal, choosing a pricing approach, mapping plans to customer segments, setting concrete price points and explaining how the prices would be tested and adjusted.

Price a new streaming subscription competing with Netflix, Hotstar and YouTube

Company: Hotstar

Role: Product Manager

Category: Product / Decision Making

Difficulty: medium

Interview Round: Other

You are launching a new subscription streaming product that works the way Netflix does, and it will compete with services such as Netflix, Hotstar and YouTube. Decide how you would price it and arrive at a concrete pricing plan, stating any assumptions you need along the way. ```hint Map what viewers already have List the options a viewer already has and what each one costs them, then decide where your product needs to sit against them and what would justify that position. ``` ### Clarifying Questions - Which market are we launching in first, and in which currency are we pricing? - What content will we offer: original shows and films, a licensed catalogue, live sports, or a mix? - Is the goal at launch rapid subscriber growth, early profitability, or learning what customers will pay? - Which devices will the product run on: phones only, or also the web and smart TVs? ### What a Strong Answer Covers - Market, product and launch goal pinned down as stated assumptions before any price is set - A pricing approach chosen from the main options, with the reason it fits this launch - Customer segments with different willingness to pay, and how the plan structure serves them - Concrete price points and plan limits, justified against the competitors named - How the prices will be tested and adjusted after launch, with the metrics and risks to watch ### Follow-up Questions - Would you offer a free trial at launch, and what would make you stop offering it? - A competitor sharply cuts its entry price soon after you launch; how do you respond? - How would the plan change if you expanded to a second country with very different incomes?

Overview: A pricing prompt for a new subscription streaming service that competes with Netflix, Hotstar and YouTube. It tests scoping the market and launch goal, choosing a pricing approach, mapping plans to customer segments, setting concrete price points and explaining how the prices would be tested and adjusted.

Hotstar logo
Hotstar
Mar 15, 2024
mediumProduct ManagerOtherProduct / Decision Making
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You are launching a new subscription streaming product that works the way Netflix does, and it will compete with services such as Netflix, Hotstar and YouTube. Decide how you would price it and arrive at a concrete pricing plan, stating any assumptions you need along the way.

Clarifying Questions Guidance

  • Which market are we launching in first, and in which currency are we pricing?
  • What content will we offer: original shows and films, a licensed catalogue, live sports, or a mix?
  • Is the goal at launch rapid subscriber growth, early profitability, or learning what customers will pay?
  • Which devices will the product run on: phones only, or also the web and smart TVs?

What a Strong Answer Covers Guidance

  • Market, product and launch goal pinned down as stated assumptions before any price is set
  • A pricing approach chosen from the main options, with the reason it fits this launch
  • Customer segments with different willingness to pay, and how the plan structure serves them
  • Concrete price points and plan limits, justified against the competitors named
  • How the prices will be tested and adjusted after launch, with the metrics and risks to watch

Follow-up Questions Guidance

  • Would you offer a free trial at launch, and what would make you stop offering it?
  • A competitor sharply cuts its entry price soon after you launch; how do you respond?
  • How would the plan change if you expanded to a second country with very different incomes?