Estimation question

Estimate the market size of Prime video.

Practice this question out loud. An AI interviewer asks it, follows up like a real interviewer would, and scores your answer. Type or speak.

What this question tests

Tests structured market-sizing for a specific streaming product using subscriber base and content-spend proxies.

State the goal: estimate the market size of Amazon Prime Video, likely meaning its subscriber value or revenue contribution.
Anchor on Amazon Prime's known subscriber base: assume roughly 200 million global Prime members.
Estimate the share of Prime's value attributable to Video: assume Video represents about 20-25% of a member's reason for subscribing, based on Prime's mix of shipping, video, and other perks.
Estimate allocated annual value: assume an average Prime membership value of $60/year, so Video's allocated share is about $13-15 per member per year.
Compute: 200 million members times roughly $14, about $2.8 billion in allocated annual Prime Video value.
Sanity-check against Amazon's known content spend and disclosed streaming ambitions to confirm the order of magnitude is reasonable.

Breaks an ambiguous 'market size' question into a clear method, allocating a share of Prime's total value to Video specifically.
States the allocation percentage as an explicit, reasoned assumption rather than guessing a lump revenue figure.
Anchors on a known, real subscriber base figure before layering allocation assumptions.
Sanity-checks against Amazon's actual disclosed content spend to validate plausibility.

Guessing a market size number with no connection to Prime's actual subscriber base or bundled value structure.
Ignoring that Prime Video isn't sold standalone for most users, making a naive per-subscriber-price calculation misleading.

How would you estimate this differently for markets where Prime Video is sold standalone?
How would advertising revenue change this estimate?