I was given the responsibility of managing the subscription module for an application that provides streaming services. I had to choose what the ideal subscription cost for the service should be as a product manager.
Identify estimated revenue from subscriptions and ad monetization by estimating the intended number of AVOD and SVOD subscribers. The subscription cost will be determined using this information. I could estimate the number of subscribers based on industry standards, but it will be challenging to gauge the projected ad monetization because there is no other streaming applications operated by the same company to use as a benchmark.
I first constructed a data set containing important path flows, and then I made data sets that could distinguish between distinct subpaths taken in those data flows. For a particular size of customer base, these data sets were fed into a logistic regression model to forecast the engagement related to the common flows. For a sanity check, this was then compared to the usage of other business-to-consumer applications within the company. The engagement information was used to calculate the application proposed advertising revenue.
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