Case Studies

Company XYZ is an online video streaming company, just like YouTube or Dailymotion.

The Head of Product has identified as a major problem for the site a very high home page drop-off rate. That is, users come to the home-page and then leave the site without taking any actions or watching any videos.

Since customer acquisition costs are very high, this is a huge problem: the company is spending a lot of money to acquire users who don’t generate any revenue by clicking on ads.

Currently, the videos shown on the home page to new users are manually chosen. The Head of Product had the idea of creating a new recommended video section on the home page.

Classify each video into one these 3 categories:

”Hot” – means trending up. These videos are candidates to be shown.

“Stable and Popular” – video view count is flat, but very high. These videos are candidates to be shown too.

“Everything else” – these videos won’t be shown.

What are the main characteristics of the “hot videos”?

After having identified the characteristics of the hot videos, how would you use this information from a product standpoint?