Define metrics for Netflix Podcasts.

Time 14:54

Understanding of the Product:

Netflix podcasts is a segment in the Nteflix app/platform where audio programs are streamed. User can listen to podcast series or audios of their choice on demand on the platform / app as they stream via internet.

Framework that we will follow:

We will briefly look at the Mission of Netflix and where the Podcasts fall into that. We will look at the stage of growth that this product is in and on the basis of that zero in on a goal for the product. We will look at the user journey on Netflix podcasts and after charting that we will come up with points that have the potential to provide the true value of the Podcasts to the user. On that basis we will jot down some metrics for Acquisition, Activation, Retention and Monetization, and then priortize them in the end.

Mission of Netflix: While it may not be in exact words but Netflix's mission is to provide the whole world of entertainment at a single place, available on demand for the user, where the user can control when, and how to play the content. The company is possibly at a stage where it has a considerable market share but because of a matured stage of engagement and monetization, it may be looking to have better growth numbers via product diversification, in a situation of possibly stagnated growth of users for its main product segment.

Podcasts in itself is a new product, in its starting phase of Acquisition where the main objective would be to optimize the top of the funnel, i.e. adoption by or onboarding of as many users as possible. Hence, we will keep the main Goal of Podcasts to be Adoption. We will also look at Retention, Engagement and Monetization metrics that will be useful if tracked from the beginning.

User Journey:

(I would need clarification here as to how new users are being onboarded on Netflix Podcasts - whether exiting Netflix users are being targeted to try Podcasts and sign up for it or new users can also sign up for Podcasts app/platform. Here I am assuming both the activities are being carried out)

1. User signs up (old Netflix user or Non netflix brand new Podcasts user)

2. Browses through various categories of Podcast content available - Business, Spiritual, Entertainment, Life, Science, Fiction etc.

3. Chooses a podcast to listen to

4. Can pause, play, stop and go to different content.

5. Listen to complete episode and move on to next  one.

6. Rates a podcast

7. Chooses another content and repeat

8. Exit

9. Login when they come back and repeat.

Metrics:

Acquisition:

1. No. of users signing up via Netflix main product

2. No. of users signing up as brand new users (Non-Netflix)

3. No. of Free subscription users (assuming freemium model where first month is free)

4. No. of users who have not given their card details compared with those who have done so (assuming that there are some users who have given their mail id and did a soft sign up, but when asked to  share card details for after their first free month is over they exited the process).

Activation:

1. No. of signed up users who have successfully registered for a free month and shared their card details.

2. No. of signed up users having a paid subscription.

3. No. of active paid subscriptions for a period of 6 months

4. No. of users who have listened to at least 2 episodes of poscasts. ((shows intentful listening as opposed to just browsing and trying out)

5. No. of users who have listened to at least 1 full episode of podcast. (shows intentful listening as opposed to just browsing and trying out)

6. No. of active users (we can define it as someone who has signed in at least once in a week)

7. No. of passive users / no. of active users

Retention:

1. Average Time on-site for each user

2. Average number of poscast episodes listened to per user.

3. DAU/ WAU

4. No. of paid subscriptions for a period of upto 1 year / 2 years.

5. Average no. of podcasts rated as (Not for me/Like this/Love this) per user.

6. Average time of one session per user.

7. Avg Interval between logins per user

8. Increase in DAU/ WAU Month on month and in Time of a session per user. Can also be tracked by No. of podcasts listened to.

Monetization:

1. ARPU

2. CLTV

3. Revenue from subscriptions

North star metric and supporting metrics:

Since we want to maximize adoption, we should priortize Activation. (not acquisition because for netflix it would be easy to tap into its existiong user base, so we are assuming it is taken care of).

Our NSM should be "% increase in No. of active users with a paid subscription of 6 months at least month-on-month", because it shows that customers are not only trying Podcasts out but also committing to its usage for a somewhat long period of time. We should track users who are actively engaging and exclude those who have been subscribed only because of auto pay and are not using the product.