How about this framework that I created? Is it MECE R = P x Q # of subscribers is it increasing or decreasing? - root cause analysis target segment differentiator any recent change - like hike in price or new competitor, or market market growth ??/ trends consumer preferences have changed Price per subscriber how competitors are priced price elasticity price segment/target segment
C = FC + VC FC delivery platform VC operational cost of each subscriber
Very helpful video! But he calculated the revenue Impact of shared premium accounts with 200k customers even tough it should be 160k customers. Or did I miss sth?
just always look at the revenues and costs. remember that profitability is always revenue - costs so that should be out of your head, and just divide them with the total revenue to generate the % number on how much the company generated the profit given the total sales.
🎯 Key points for quick navigation: 00:00:00 *📣 Introduction to RocketBlocks* - Introduction by Kenton Kestu, founder of RocketBlocks, - Presentation of experts Christopher McCram and Matthew Calbert, - Overview of the mock interview's focus on a profitability case involving a streaming media provider. 00:02:17 *👥 Expert Introductions* - Christopher McCram's background and current role, - Matthew Calbert's background and current role, - Transition to case question introduction. 00:05:37 *🎬 Case Overview and Initial Analysis* - Introduction to NetFilm case and profitability issues, - Matthew clarifies details and establishes initial analytical framework, - Discussion on revenue growth and cost drivers. 00:08:06 *📊 Analyzing Cost and Revenue Data* - Examination of profit and cost data over five years, - Identification of revenue slowdown and increased costs, - Discussion on the impact of increased competition and password sharing on revenue. 00:11:58 *💡 Identifying the Root Causes* - Calculation of revenue loss due to password sharing, - Estimation of the impact on profitability, - Discussion on potential solutions to address the issue. 00:15:10 *🧠 Brainstorming Solutions* - Proposals for addressing password sharing, - Suggestions include charging for sharing, limiting sharing through technical means, and enhancing personalization, - Identification of potential risks associated with these solutions. 00:18:34 *🛠️ Implementation and Risk Mitigation* - Development of an implementation plan, - Steps include market testing, technical development, communication, and measurement, - Estimation of a six-month timeline for implementation. 00:19:54 *📝 Final Recommendation and Synthesis* - Summary of findings and recommendation to limit password sharing, - Emphasis on balancing churn risk with content quality, - Final thoughts and wrap-up of the case analysis. 00:23:35 *✅ Interview Conclusion and Feedback* - Feedback on the candidate’s performance in the case interview, - Discussion on strengths and areas for improvement, - Final remarks and closing of the interview session. Made with HARPA AI
Sure - but they reflected the reality while constructing the case. The increase in costs are mainly due to the necessity of souring your contents from competitors - for the interviewee it is harder to find a workaround for this situation - therefore the interviewer provided materials that guided the conversation into the revenue direction
Because it's consistent with the actual number of users. The key element affecting the profitability is the discrepancy between actual users and paying users (due to the profile sharing practice affecting sales)
isn't the lost revenue the half of what he calculated? becuase in a conservative estimate you already have one oftwo persons in your revenue. or did i miss sth?
I was following along solving the case and during the second quant analysis it was much easier and seemed the most straightforward approach to find revenue loss by multiplying the percentage of subscription sharing by the revenue, rather than calculating with the number of subscribers and monthly subscription cost, which should just be the revenue anyways. Why did the interviewer lead this case in this inefficient calculation method? .25*300,000,000 instead of .25*1,700,000*10*12
How about this framework that I created? Is it MECE
R = P x Q
# of subscribers
is it increasing or decreasing? - root cause analysis
target segment
differentiator
any recent change - like hike in price or new competitor, or market
market growth ??/ trends
consumer preferences have changed
Price per subscriber
how competitors are priced
price elasticity
price segment/target segment
C = FC + VC
FC delivery platform
VC operational cost of each subscriber
The most effective video I've ever seen. Thank You
Very helpful video! But he calculated the revenue Impact of shared premium accounts with 200k customers even tough it should be 160k customers. Or did I miss sth?
i was thinking about that too🥺
i think he rounded that number to 200k but not sure
how are they calculating the % profit margins so quick in the quant chart(7.42), does anyone have any tips please ?
just keep practising
just always look at the revenues and costs. remember that profitability is always revenue - costs so that should be out of your head, and just divide them with the total revenue to generate the % number on how much the company generated the profit given the total sales.
🎯 Key points for quick navigation:
00:00:00 *📣 Introduction to RocketBlocks*
- Introduction by Kenton Kestu, founder of RocketBlocks,
- Presentation of experts Christopher McCram and Matthew Calbert,
- Overview of the mock interview's focus on a profitability case involving a streaming media provider.
00:02:17 *👥 Expert Introductions*
- Christopher McCram's background and current role,
- Matthew Calbert's background and current role,
- Transition to case question introduction.
00:05:37 *🎬 Case Overview and Initial Analysis*
- Introduction to NetFilm case and profitability issues,
- Matthew clarifies details and establishes initial analytical framework,
- Discussion on revenue growth and cost drivers.
00:08:06 *📊 Analyzing Cost and Revenue Data*
- Examination of profit and cost data over five years,
- Identification of revenue slowdown and increased costs,
- Discussion on the impact of increased competition and password sharing on revenue.
00:11:58 *💡 Identifying the Root Causes*
- Calculation of revenue loss due to password sharing,
- Estimation of the impact on profitability,
- Discussion on potential solutions to address the issue.
00:15:10 *🧠 Brainstorming Solutions*
- Proposals for addressing password sharing,
- Suggestions include charging for sharing, limiting sharing through technical means, and enhancing personalization,
- Identification of potential risks associated with these solutions.
00:18:34 *🛠️ Implementation and Risk Mitigation*
- Development of an implementation plan,
- Steps include market testing, technical development, communication, and measurement,
- Estimation of a six-month timeline for implementation.
00:19:54 *📝 Final Recommendation and Synthesis*
- Summary of findings and recommendation to limit password sharing,
- Emphasis on balancing churn risk with content quality,
- Final thoughts and wrap-up of the case analysis.
00:23:35 *✅ Interview Conclusion and Feedback*
- Feedback on the candidate’s performance in the case interview,
- Discussion on strengths and areas for improvement,
- Final remarks and closing of the interview session.
Made with HARPA AI
Book a 1-on-1 coaching session with Matthew here 👉 www.rocketblocks.me/contributors/matthew-calvert.php
Book a 1-on-1 coaching session with Chris here 👉 www.rocketblocks.me/contributors/christopher-macrae-ham.php
Why not look into the increasing costs too? It doubled...
Sure - but they reflected the reality while constructing the case. The increase in costs are mainly due to the necessity of souring your contents from competitors - for the interviewee it is harder to find a workaround for this situation - therefore the interviewer provided materials that guided the conversation into the revenue direction
the slow increase in the revenue was much more concerning than the increase in the costs given that the company's is the market leader.
Because it's consistent with the actual number of users. The key element affecting the profitability is the discrepancy between actual users and paying users (due to the profile sharing practice affecting sales)
isn't the lost revenue the half of what he calculated? becuase in a conservative estimate you already have one oftwo persons in your revenue. or did i miss sth?
I was following along solving the case and during the second quant analysis it was much easier and seemed the most straightforward approach to find revenue loss by multiplying the percentage of subscription sharing by the revenue, rather than calculating with the number of subscribers and monthly subscription cost, which should just be the revenue anyways. Why did the interviewer lead this case in this inefficient calculation method?
.25*300,000,000 instead of .25*1,700,000*10*12
.25x300m=75m
the Zoom video bubble blocks the subscriber numbers in the exhibit that is around 6 min in. Can this be edited at all to move that out of the way?