Case Statement:
Your client is a video streaming service provider. They want to increase revenue. Presently the customer base is 1 million for subscription based and 50 million using free services provided.
C: Revenue can be increased in 2 ways here:
• Charge higher prices from existing subscription-based customers
• Convert customers from free-services users to subscription based
I: What should we focus on first?
C: First, we should focus on 50 million subscribers. If we can convert 2% of them to existing subscription model, we would be better off.
I: Okay, great. How will you do that?
C: We can divide it into two parts: Internal and External, i.e., what the client can do in-house and how it can cooperate with external stakeholders respectively.
Internal:
i. Introduce different SKU’s (differential pricing for different services on the basis of number of users watching at the same time, quality of the video i.e., HD, ultra-HD, also monthly, semesterly, yearly)
ii. Different pricing for different types of content (some people might like particular genre)
iii. Multi-lingual shows to cater to more customers
iv. Improve UI/UX, improve lags if any
External:
i. Bundling with Mobile operators
ii. Bundling with Phone and Smart TV manufacturers
iii. Come up with more originals to differentiate from competitors (sign popular actors to gain traction)
I: Look at the existing subscription-based customers now and make suitable recommendations.
C: I would like to make the Customer Journey map here:
• Pre-purchase-Awareness: Already aware.
• During-Payment:
i. Better Payment Gateways, different options like Paytm, PhonePe
• Post-Purchase:
i. Improve Experience: with the content, UI/UX, quality of video (both on mobile and TVs) to retain
ii. User profiles gives leverage for users to personalize their user account and preferences
iii. Receive algorithmic recommendation for new items to watch
I: Alright. Thanks. We can close the case here.
Background Information:
Client: Video Streaming Service Provider (like Netflix)
Services: Subscription based and Free
Competitors: 2-3 major competitors (YouTube, Amazon Prime)
Timeline: Medium term
Customers: 1 million subscription, 50 million free services
Location: PAN India
Case recommendations:
There is no right or wrong answer in this case, just back up your answer with good reason.
