Strategy question
Define a strategy for Netflix to compete with Amazon Prime and Disney+ Hotstar to adopt to users in the Indian OTT market.
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What this question tests
Tests product strategy thinking: reading a competitive market, identifying a defensible angle, and turning it into a concrete plan with trade offs.
How to approach it
- State the goal: grow paid subscribers and watch time in India against Amazon Prime Video (bundled with Prime shipping) and Disney+ Hotstar (cricket and cheap pricing).
- Map the Indian OTT market: price sensitivity, mobile-first low-bandwidth viewing, and Hotstar's cricket moat plus Prime's bundling moat.
- Identify Netflix's real advantage: premium originals and international content, not price or live sports.
- Propose 2 to 3 options such as a cheaper mobile-only tier, regional-language original content, and partnerships with telecoms for data bundling.
- Recommend the option with the best return, likely regional content plus a mobile tier, since it attacks both price sensitivity and content relevance.
- Flag the key risk: a cheap tier could cannibalize existing premium subscribers or dilute brand positioning.
What a strong answer includes
- Recognizes Netflix cannot win on price against Prime's bundle or on live sports against Hotstar's IPL and cricket rights, so it competes on original, prestige content.
- Names a concrete lever: regional-language originals (Hindi, Tamil, Telugu) since language is a bigger barrier to adoption in India than in most markets.
- Proposes a measurable pilot, such as launching a mobile-only tier in 2 to 3 cities and tracking conversion and churn before a national rollout.
- Weighs the trade off between short-term ARPU dilution from a cheap tier and long-term subscriber growth.
Common mistakes
- Recommending Netflix simply lower price everywhere without addressing the brand and margin trade off.
- Ignoring that cricket rights are the actual driver of Hotstar's dominance in India.
Likely follow-up questions
- How would you measure whether a cheaper mobile tier is working within the first quarter?
- What would you do if regional content grows viewership but not paid conversion?
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Learn the skill behind it
Chapters of the AI PM course that teach what this question tests.
- Chapter 4: Discovery and strategy for AI products
- Chapter 9: Prove it paid off: outcomes, economics, and pricing
- Chapter 14: Get the job: the AI PM interview loop