Interviewer view · keep this screen to yourself
What is one streaming subscriber in India worth?
You run the case. Read the prompt, answer questions from the notes below, and share data only when the candidate asks for it or gets stuck. Score at the end.
Case timer
00:00
1. Read the prompt aloud
Read it slowly, then pause. Let the candidate ask questions before they structure.
An illustrative streaming service in India has 10 million subscribers paying an average of INR 150 a month. Monthly churn is 5 percent. Payment, delivery, and partner fees take 10 percent of revenue. Winning a new subscriber costs INR 600 in marketing. What is monthly revenue, the average subscriber lifetime, the lifetime value (before content costs), and the LTV to CAC ratio? What if churn rises to 8 percent?
2. Answers to clarifying questions
This case has no scripted clarifying answers. Answer from the prompt, and say "assume what you think is reasonable" if the prompt does not cover it.
3. A model structure
Compare the candidate's structure with this one. A different split can be just as good if it is clean and fits the problem.
- LTV = monthly contribution x average lifetime; compare with CAC
- Monthly revenue = subscribers x ARPU
- Average lifetime in months = 1 / monthly churn
- Monthly contribution per subscriber = ARPU x (1 minus variable cost share)
4. The working, step by step
Each step shows how a strong candidate works it out. Share a new fact from it only when the candidate asks or is stuck, and let them do the math: the result in the dark box is what they should reach.
Step 1: Monthly revenue
What a strong candidate does: 10 million x INR 150, in INR crore (1 crore = 10 million).
Monthly revenue (INR crore): 10 × 150 ÷ 10 = 150
Step 2: Average lifetime
What a strong candidate does: 1 divided by 5 percent.
Average lifetime (months): 1 ÷ 0.05 = 20
Step 3: Lifetime value
What a strong candidate does: INR 135 of monthly contribution for 20 months.
LTV (INR): 150 × 0.9 × 20 = 2,700
Step 4: LTV to CAC
What a strong candidate does: Divide by INR 600.
LTV to CAC ratio: 2,700 ÷ 600 = 4.5
Step 5: If churn rises to 8 percent
What a strong candidate does: Lifetime falls to 12.5 months.
LTV at 8 percent churn (INR): 150 × 0.9 ÷ 0.08 = 1,688
The recommendation to listen for
At the end, say: "The CEO walks in. What is your recommendation?"
The streamer should keep spending INR 600 to win subscribers, because each is worth about INR 2,700 before content costs, 4.5 times the cost. First, at 5 percent monthly churn a subscriber stays about 20 months. Second, if churn rises to 8 percent, LTV falls by more than a third, to about INR 1,688, which means keeping subscribers matters as much as winning them. The risk is churn spikes when a sports season or tournament ends. As a next step, track monthly churn by the type of content subscribers watch.
Risks a strong answer names: This ignores content costs, which are large but mostly fixed; Sports streaming often sees churn spikes when a season or tournament ends.
Score the candidate
Score each criterion from 1 to 5. A 2 or a 4 sits between the descriptions.
This case has no exhibit. Score Exhibit reading on how the candidate used the data you gave them: did they pick out the number that matters and say what it means?
Total
0 out of 25
Score all five criteria to see the band and the feedback template.