Profitability consulting case interview: streaming revenue is down (w/ ex-BCG Consultants)

[@NadiaAbbasi-u6y]

His clarifying question on revenue and costs feels like something that should be in the framework. The question was brilliant in trying to initially isolate cost vs. revenue as the driver behind the decline but I'm confused. I've been told the purpose of clarifying questions in the beginning to scope the problem down versus starting to solve the case. How do you draw a boundary line between framework vs. clarifying q's in this case?

[@beautifulthings663]

The most effective video I've ever seen. Thank You

[@Brondsteda]

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?

[@กัญญาวีร์แสงอัมพร-ศ3ว]

i was thinking about that too🥺

[@nevos345]

i think he rounded that number to 200k but not sure

[@rocketblocks]

Book a 1-on-1 coaching session with Matthew here 👉 www.rocketblocks.me/contributors/matthew-calvert.php

[@IMO9912]

how are they calculating the % profit margins so quick in the quant chart(7.42), does anyone have any tips please ?

[@tilelate9718]

just keep practising

[@rezkiambong4698]

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.

[@xxdemestrosxx]

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?

[@danliubovich4878]

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?

[@kobejoseph8401]

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

[@bandofbrothers5860]

.25x300m=75m

[@chillidoener3308]

Why not look into the increasing costs too? It doubled...

[@kington2311]

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

[@rezkiambong4698]

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.

[@lucamissaglia4660]

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)

[@tiwarik1]

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

[@rediscovermath]

The videos with Mathew are always too unstructured unlike your other content.

[@rocketblocks]

Book a 1-on-1 coaching session with Chris here 👉 www.rocketblocks.me/contributors/christopher-macrae-ham.php