Netflix will try to limit password sharing by billing subscribers an additional $8 per month if viewers outside their household use their account.
The streaming platform announced the decision on Tuesday after months of seeking to control password sharing and limit viewers to the same household.
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"Everyone living in that household can use Netflix wherever they are — at home, on the go, on holiday," the streaming platform said, warning that “a Netflix account is for use by one household.”
Netflix has said the paid password-sharing program would apply to users across the world.
“Paid sharing is another important initiative as widespread account sharing (100M+ households) undermines our ability to invest in and improve Netflix for our paying members, as well as build our business,” Netflix co-CEO Greg Peters told investors during its quarterly earnings call in April, noting subscriber engagement over time is expected to grow as viewers sign-up for their own accounts.
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Subscribers will pay between $15.50 and $20 for standard or premium plans, depending on selected features.
While it remains unclear exactly how the streaming service plans to validate locations and viewer identities, it said an additional $7.99 per month would be assessed under the “buy an extra member” feature should an account’s password be shared.