Strategy question
Should Google build a video streaming service to compete with Netflix, Disney+, PrimeVideo, and Hulu? If yes, outline the strategy.
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What this question tests
Tests strategic reasoning, assessing market attractiveness and a company's right to win before recommending entry.
How to approach it
- Note that Google already competes here through YouTube, YouTube TV and Play Movies, so a new service competes with its own portfolio too.
- Assess the market: streaming is saturated with a content-cost arms race, and differentiation is hard without owned IP.
- Assess Google's advantage: distribution through Android, Chromecast and YouTube's 2B-plus users, plus ad-tech, but a weak owned-content library versus Disney or Netflix.
- Recommend against a new subscription originals service; extend YouTube's ad-supported model instead, FAST channels and YouTube TV bundling, which plays to Google's actual strengths.
- Flag the risk of cannibalizing YouTube TV subscribers and the ongoing cost of content licensing.
What a strong answer includes
- Gives a clear recommendation tied to Google's real assets, distribution, ads and data, rather than a generic because-it-is-a-big-market answer.
- Contrasts subscription economics against ad-supported economics explicitly to justify the direction chosen.
- Names the cannibalization risk to YouTube TV as a concrete downside to weigh.
Common mistakes
- Saying yes to a new service without weighing content-cost economics against Google's actual strengths.
- Ignoring that Google already competes in this space through YouTube.
Likely follow-up questions
- How would you decide the content acquisition budget?
- What's the risk to YouTube TV if a new ad-supported push cannibalizes it?
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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