For HBO Max, should we focus on expanding international availability or improving streaming quality for existing markets?

Introduction

The trade-off we're examining for HBO Max is whether to focus on expanding international availability or improving streaming quality for existing markets. This decision is crucial for HBO Max's growth strategy and user experience. I'll analyze this trade-off by considering market dynamics, technical constraints, and user expectations, ultimately providing a data-driven recommendation.

Step 1

Clarifying Questions (3 minutes)

• Context: I'm assuming HBO Max is facing increased competition in existing markets. Is this correct, and can you provide more details on our current market position?

Why it matters: Helps prioritize between growth and retention strategies Expected answer: Strong in US, facing challenges in some international markets Impact on approach: Would influence resource allocation between markets

• Business Context: Based on our revenue model, I'm thinking subscription growth might be our primary goal. How does this align with our current business objectives?

Why it matters: Determines whether to prioritize user acquisition or ARPU Expected answer: Balanced focus on both subscriber growth and revenue per user Impact on approach: Would inform the balance between expansion and quality improvement

• User Impact: Considering user behavior, I'm curious about our churn rates in existing markets. Can you share any insights on user retention challenges?

Why it matters: Helps assess the urgency of quality improvements Expected answer: Moderate churn due to content and occasional quality issues Impact on approach: Would influence the priority of streaming quality enhancements

• Technical: Regarding our current infrastructure, I'm wondering about our capacity for scaling internationally. What's our current global CDN coverage?

Why it matters: Determines feasibility and cost of international expansion Expected answer: Good coverage in some regions, gaps in others Impact on approach: Would affect the timeline and resources needed for expansion

• Resource: Looking at our team structure, I'm thinking about our capacity for simultaneous initiatives. How are our engineering resources currently allocated?

Why it matters: Helps determine if we can pursue both options concurrently Expected answer: Limited resources, need to prioritize one initiative Impact on approach: Would guide the decision between focusing on one area or a phased approach