Netflix announced its first subscriber loss in over a decade in April 2022. The company says the decline was due in part to password sharing. Netflix co-founder Marc Randolph joined Yahoo Finance Live on June 7 and broke down further details on the company’s plan to combat password sharing.
MARC RANDOLPH: Netflix from the very beginning has been obsessed about testing. You really want to make sure you know what you're doing. You don't want to just roll something out and see what happens. I do know that Netflix is testing various approaches to how do you fairly put in place some reasonable controls on password sharing. I don't think anybody wants to make it difficult for people who have legitimate uses to share their password or to use the password in multiple locations.
But at the same time, they'd like to say, are there ways to control what you might consider egregious use, which is people distributing their password to dozens or scores of other people. And I think Netflix's challenge is finding that middle point where, basically, the people who are legitimately using the service and want the convenience of being able to share passwords between family members who use passwords in different geographic locations, make that easy, as they always have.