Medium
Growth/Cost
Orange Music
Practice this intermediate growth/cost case interview question in the Media & Entertainment sector. Includes detailed problem prompt, clarifying questions, structured framework, and expert recommendation. Part of ProHub's 835+ consulting case library.
ProHub Comment
This case requires candidates to synthesize two distinct problems—market share loss and rising ad spend efficiency—through both inorganic growth (acquisition) and operational optimization (marketing channel reallocation). The case is well-structured with exhibits that guide candidates toward recognizing Audio Auteur as the optimal acquisition target and identifying Display Ads' low conversion rates as the key cost driver.
Estimated Time
26 minutes
Difficulty
Medium
Source
Duke
10
/ 100
Orange Music, a music streaming app, is losing market share to its primary competitor Soundhaven, for the past 3 years. Additionally, Orange Music’s Ad Spend as a % of revenue has been increasing and has become higher than Soundhaven’s. Orange Music needs your help to turn things around.
Clarifying Information
- OM’s main goal is to increase market share and reduce Ad Spend (% of revenue)
- OM operates in NA (North America), LAD (Latin America Division), and EMEA (Europe, Middle East, and Africa)
- OM has 4 main competitors; all have a higher YoY growth than OM
- OM earns revenue through in app ads, user subscriptions, and partnerships