Pricing Strategy for Selling Complete TV Seasons on YouTube

Quick Overview

A pricing case about what YouTube should charge for buying a full season of a TV show. It tests setting a pricing goal, using reference prices and willingness to pay by segment, structuring discounts and tiers, planning a price test, and guarding against cannibalization.

Pricing Strategy for Selling Complete TV Seasons on YouTube

Company: Google

Role: Product Manager

Category: Product / Decision Making

Difficulty: medium

Interview Round: Other

Suppose viewers can buy a complete season of a TV show on YouTube. How would you decide what that season should cost? ```hint Anchor before you pick a number Work out what a viewer will compare the season's price against, and what the show's rights holder needs to earn from each sale, before choosing a figure. ``` ### Clarifying Questions - Is this a licensed studio or network series, or a YouTube creator's own show? - Does buying mean keeping the episodes indefinitely, or access for a limited time? - Who has the final say on price, YouTube or the rights holder, and how is the revenue shared? - Is the season finished, or still airing so that buyers receive new episodes as they come out? ### What a Strong Answer Covers - A pricing goal for this purchase and how it fits alongside YouTube's ad and subscription businesses - The reference prices viewers will compare against: single episodes, other stores and subscription services - Willingness to pay by viewer segment, and the levers that justify a higher or lower price - A concrete price structure with its rationale, plus a plan to test it - Metrics and guardrails, including cannibalization of episode sales and the rights holder's economics ### Follow-up Questions - How would the price change if the season is still airing when someone buys it? - How would you test prices when the same season sells at other stores for a fixed amount? - Should older seasons of the same show cost less, and how would you set them?

Overview: A pricing case about what YouTube should charge for buying a full season of a TV show. It tests setting a pricing goal, using reference prices and willingness to pay by segment, structuring discounts and tiers, planning a price test, and guarding against cannibalization.

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Google
Sep 8, 2024
mediumProduct ManagerOtherProduct / Decision Making
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Suppose viewers can buy a complete season of a TV show on YouTube. How would you decide what that season should cost?

Clarifying Questions Guidance

  • Is this a licensed studio or network series, or a YouTube creator's own show?
  • Does buying mean keeping the episodes indefinitely, or access for a limited time?
  • Who has the final say on price, YouTube or the rights holder, and how is the revenue shared?
  • Is the season finished, or still airing so that buyers receive new episodes as they come out?

What a Strong Answer Covers Guidance

  • A pricing goal for this purchase and how it fits alongside YouTube's ad and subscription businesses
  • The reference prices viewers will compare against: single episodes, other stores and subscription services
  • Willingness to pay by viewer segment, and the levers that justify a higher or lower price
  • A concrete price structure with its rationale, plus a plan to test it
  • Metrics and guardrails, including cannibalization of episode sales and the rights holder's economics

Follow-up Questions Guidance

  • How would the price change if the season is still airing when someone buys it?
  • How would you test prices when the same season sells at other stores for a fixed amount?
  • Should older seasons of the same show cost less, and how would you set them?