For Optus's streaming TV service, should we focus on acquiring more exclusive content or improving the user interface and app performance?

Introduction

For Optus's streaming TV service, we're facing a critical trade-off between acquiring more exclusive content and improving the user interface and app performance. This decision will significantly impact our competitive position, user satisfaction, and long-term growth. I'll analyze this trade-off by examining our product ecosystem, key metrics, and potential experiments to inform our strategy.

Step 1

Clarifying Questions (3 minutes)

• Context: I'm thinking about our current market position. Could you share our market share and how it compares to our main competitors?

Why it matters: Helps determine if we need to focus on user acquisition or retention. Expected answer: We're in the top 3, but not the market leader. Impact: If we're far behind, we might lean towards exclusive content for differentiation.

• Business Context: Based on our revenue model, I assume we operate on a subscription basis. Is there any ad-supported tier or plans for one?

Why it matters: Influences the balance between user experience and content strategy. Expected answer: Primarily subscription-based, considering an ad-supported tier. Impact: An ad-supported tier might shift focus towards UI improvements for ad integration.

• User Impact: I'm curious about our user demographics. Are we primarily serving younger, tech-savvy users or a broader audience?

Why it matters: Different user segments have varying preferences for content vs. usability. Expected answer: Broad audience, skewing slightly younger. Impact: A younger audience might prioritize app performance, while a broader one might value content variety.

• Technical: Regarding our current app performance, what are the main pain points users are experiencing?

Why it matters: Helps gauge the urgency of UI/performance improvements. Expected answer: Some buffering issues and navigation complexities. Impact: Severe technical issues would prioritize app improvements over content acquisition.

• Resource: What's our current split in budget allocation between content acquisition and technical development?

Why it matters: Indicates our current prioritization and potential for reallocation. Expected answer: 70% content, 30% technical. Impact: A heavily skewed budget might suggest rebalancing our investments.