This is the kind of question where you can spiral fast if you don't anchor on a framework early.
Frame the decision as a strategic portfolio question: evaluate Amazon's video streaming service against its role in the broader Amazon ecosystem, not just as a standalone P&L. Weigh strategic benefits (Prime retention, data, advertising, content synergies) against costs and opportunity costs, then recommend a path forward (continue, shut down, or transform) with clear criteria and metrics.
Pro tip: Show that you understand Amazon's flywheel: video streaming isn't just entertainment—it's a tool to acquire and retain Prime members who spend more across Amazon. Quantify the impact where possible (e.g., Prime member lifetime value, churn reduction) to demonstrate business acumen.
Define what 'continuing' or 'shutting down' means: fully exit, spin off, or restructure? Align on the primary goal—maximizing shareholder value, accelerating growth, or improving profitability—and the time horizon.
Evaluate how the service supports Amazon's ecosystem: Prime membership acquisition/retention, cross-selling (retail, AWS, advertising), data collection, and competitive positioning against Netflix, Disney+, etc.
Review revenue (subscriptions, ads), costs (content, technology, marketing), and profitability. Consider customer lifetime value, churn, and marginal contribution of streaming to Prime.
Compare continuing vs. shutting down vs. other options (e.g., ad-supported tier, licensing content, partnering). Consider what Amazon could do with the capital and management attention if it exits.
Based on the analysis, recommend a course of action. Define success metrics (e.g., Prime churn reduction, ad revenue growth) and outline key risks and mitigation strategies.
AI-generated suggestions, not part of the candidate's original notes. May be inaccurate — verify before relying on them.