Product design question
You are a PM of the Amazon Prime Video team and you need to increase market share. Which strategy will you follow? Build a solution/product considering the COVID-19 situation.
- Product design
- Hard
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What this question tests
Competitive strategy combined with product design under a specific market condition, COVID-driven streaming demand.
How to approach it
- Clarify the market share goal, against Netflix and Disney+ specifically, and over what time horizon.
- Identify Prime Video's structural advantage, bundling with Prime shipping benefits, which competitors cannot easily match.
- Assess the COVID context, a surge in home viewing and demand for family and low-cost content during lockdowns.
- Propose a strategy, double down on the bundle value, e.g. a family watch-party feature, and cheaper ad-supported tiers for price sensitive new streamers.
- Design a concrete feature, a synchronized watch-party mode for families separated during lockdown, integrated with existing Prime accounts.
- Define success metrics, incremental Prime sign-ups attributed to video and watch-party feature adoption rate.
What a strong answer includes
- Anchors the strategy in Prime Video's real advantage, the Prime bundle, rather than competing purely on content spend against Netflix.
- Proposes a concrete, buildable feature, watch parties, tied directly to the COVID context of separated families.
- Distinguishes subscriber growth from engagement, noting that bundled subscribers may already exist but need to be activated to watch.
- Sets a specific, attributable metric, e.g. incremental Prime video minutes watched per subscriber, marked as an assumption.
Common mistakes
- Proposing to out-spend Netflix on content without acknowledging budget constraints.
- Ignoring the bundling advantage that differentiates Prime Video from other streamers.
- Not tying the feature specifically to the COVID context given in the prompt.
Likely follow-up questions
- How would you measure whether this feature drove new Prime sign-ups.
- What would you do if watch-party adoption is low.
- How would you differentiate further from Netflix and Disney plus long term.
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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 7: AI UX and human oversight: design for a system that is wrong sometimes
- Chapter 14: Get the job: the AI PM interview loop