Your director at Amazon asks about Amazon Prime Music: should we expand Amazon Music library with higher licensing costs, or focus on current Amazon Music catalog quality?

Introduction

The trade-off we're examining today is whether Amazon should expand its Music library with higher licensing costs or focus on improving the quality of the current Amazon Music catalog. This decision is crucial for Amazon Prime Music's future direction and competitiveness in the streaming music market. I'll analyze this trade-off by considering user impact, business objectives, technical feasibility, and long-term strategic implications.

Step 1

Clarifying Questions (3 minutes)

• Looking at our strategic priorities, I'm thinking this might be critical for our Q4 revenue targets. Could you help me understand how this aligns with our current business goals?

Why it matters: Helps prioritize solution against business objectives Expected answer: High priority, directly impacts main revenue stream Impact on approach: Would justify faster timeline and more resources

• Based on our user segments, I'm assuming this decision would primarily affect our power users and music enthusiasts. Can you confirm which user segments we're most concerned about impacting?

Why it matters: Ensures we're focusing on the right user groups Expected answer: Primarily affects power users and music enthusiasts Impact on approach: Would tailor solution to these specific user needs

• Considering our current technical infrastructure, I'm wondering about the scalability of expanding our music library. What are our current technical limitations or constraints?

Why it matters: Determines feasibility of expansion Expected answer: Some limitations in content delivery network capacity Impact on approach: Might need to factor in infrastructure upgrades

• Given the potential costs involved, I'm curious about our budget flexibility. What's our current budget allocation for music licensing and catalog improvement?

Why it matters: Helps determine financial feasibility of options Expected answer: Limited budget increase possible, need strong ROI justification Impact on approach: Would need to prioritize high-impact, cost-effective solutions

• Considering market dynamics, I'm thinking about the urgency of this decision. What's our timeline for implementation, and are there any upcoming competitor moves we need to consider?

Why it matters: Informs prioritization and speed of execution Expected answer: Decision needed within next quarter, competitors expanding libraries Impact on approach: Might need to balance speed with thoroughness in decision-making