Strategy question
How would you assess the impact of TikTok and YouTube Shorts on Netflix’s engagement?
- Netflix
- Strategy
- Hard
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What this question tests
Competitive analysis across different content formats, testing whether the candidate treats short form and long form as substitutes or complements.
How to approach it
- Frame the question: are TikTok and Shorts competing for the same attention budget as Netflix, even though content type differs.
- Consider the substitution effect: short form fills idle micro moments that could otherwise be a Netflix session, especially among younger users.
- Consider the complementary effect: short clips of Netflix shows can drive discovery and back to full episode viewing.
- Propose measuring it by looking at engagement trends by age cohort, since younger users are more affected.
- Recommend Netflix's response: invest in short form marketing and discovery clips rather than competing on short form itself.
What a strong answer includes
- Distinguishes substitution from complementary effects instead of assuming pure competition.
- Segments the analysis by age cohort, since the Gen Z attention shift is the real driver.
- Recommends a specific response grounded in what Netflix can control.
Common mistakes
- Treating TikTok and Netflix as purely competing with no consideration of the complementary discovery effect.
- No segmentation by user age or usage pattern.
Likely follow-up questions
- What data would confirm whether this is really hurting Netflix engagement?
- Should Netflix build its own short form feed?
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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