Metrics question
How would you grow the revenue of Netflix?
- Metrics
- Medium
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What this question tests
Metrics and strategy thinking: identifying concrete revenue levers for a mature subscription business and how to measure them.
How to approach it
- Clarify the levers available: pricing, subscriber growth, reduced churn, and new revenue streams like ads or gaming.
- Assess pricing: propose a tiered pricing test, such as an ad-supported cheaper tier to capture price-sensitive users.
- Assess churn: identify what drives cancellations, like content gaps or price sensitivity, and propose targeted retention offers.
- Assess new streams: an ad-supported tier or bundling with other services to expand the addressable market.
- Define success with specific metrics: net subscriber growth, average revenue per user, and churn rate by segment.
What a strong answer includes
- Breaks revenue into concrete, distinct levers (pricing, growth, churn, new streams) rather than one vague idea.
- Proposes the ad-supported tier as a specific, real, already-validated lever (similar to Netflix's own actual move).
- Names churn drivers specifically, like content library gaps, rather than treating churn as unexplained.
- Uses an assumed metric, e.g. targeting a 2 point reduction in monthly churn from targeted win-back offers.
Common mistakes
- Giving one vague idea like 'add more content' with no metric or reasoning.
- Ignoring churn as a major lever, focusing only on new subscriber growth.
- Not defining specific metrics to track revenue impact.
Likely follow-up questions
- Which lever would you prioritize first, and why?
- How would you test a new pricing tier before full rollout?
- How would you measure the trade-off between ad revenue and subscriber satisfaction?
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More questions from LinkedIn
Learn the skill behind it
Chapters of the AI PM course that teach what this question tests.
- Chapter 9: Prove it paid off: outcomes, economics, and pricing
- Chapter 2: Data fluency: SQL, logs, and reading the truth yourself
- Chapter 14: Get the job: the AI PM interview loop