you are PM of Netflix what will be the top 3 metrics you will look at and why?

Question

Accepted Answer

The top 3 metrics I would look at as the PM of Netflix are subscriber growth, user engagement, and content performance.

Subscriber growth: This metric indicates the success of Netflix in acquiring new customers and expanding its user base. It helps measure the effectiveness of marketing strategies and the overall popularity of the platform.
User engagement: This metric measures how actively users are interacting with the platform, such as the number of hours spent watching content, frequency of logins, and interactions with features like ratings and reviews. It helps assess the level of satisfaction and loyalty among subscribers.
Content performance: This metric evaluates the performance of different content offerings on Netflix, including TV shows, movies, and original productions. It includes metrics like viewership, ratings, and user feedback. It helps in making data-driven decisions regarding content acquisition, production, and renewal.

Accepted Answer

- MoM Average IMDB ratings of the top 10 movies at Netflix versus Average IMDB ratings of the movies on competitors increasing or decreasing
- No. of times on every launch how better is the viewership within 1 day of launch of any new content from the benchmark historical average 
- Avg time spent on app by user increasing or decreasing

Accepted Answer

About netflix - Netflix is a subscription-based video streaming service for watchers

My approach will be to:

Define the business goal from Netflix’s mission
Break down the actions taken by users at each stage of the customer journey
Set metrics for each user/stage Define 3 main metrics

The mission of Netflix is to entertain the world by providing exclusive and engaging streaming content to it’s subscribers

Goal - I think their goal is to engage more and more people and earn money to invest in services to engage more people on the platform (Engagement and revenue is the main goal of netflix)

User Actions

sign up for the free period
scroll recommendations
search for something
watch video/trailer, recommendations, collections
create lists
download
subscribe for new upcomings
come back next days
open notifications
subscribe for the paid version

These actions will fall under certain Mertic which are as below -

Acquisition & Activation

sign up for the free period
scroll recommendations
search for some content

Engagement

watch video/trailer, recommendations, collections

create lists

download

subscribe for new comings

Retention

Come back next days

open notifications

Conversion/Monetisation

Purchase subscription

Renewing subscription

Now as per the goal engagement and revenue are the key metrics so I would list down top metrics in this category

Average watch time - Time spent on the platform by users/day This metric tells us how successful we are in entertaining users
DAU - Active users (who watch video/trailer, recommendations, collections -create lists -download -subscribe for new comings)
No of total subscribed users
Customer life time value (CLV)
No of renewed subscription
New V/S renewed subscription
Average session duration per user
No of session per user
Notification CTR

Out of these i believe first three Avarage watch time , DAU and No of active subscribed users will be first north start for netflix as these are more aligning with its goal

Accepted Answer

Follow the framework AARRR and look at different metrics of signup activation time spent and since Netflix is a large company now cost must be one of the important metrics.

you are PM of Netflix what will be the top 3 metrics you will look at and why?

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