(WGN) — The the rumors are true: Netflix will begin cracking down on password sharing early next year, according to its latest earnings report.
After Netflix announced last week that the company will offer a cheaper $6.99 option that includes commercials, now they are looking “monetize account sharing.”
In April, Netflix reported its first subscriber loss in more than a decade, which weighed on its stock. At the time, executives blamed increased competition and password sharing.
The company said it took a “thoughtful approach” and announced Tuesday that those who benefit from the sharing will be able to transfer their profiles to their own new accounts.
Also, subscribers will be able to create sub-accounts “if they want to pay for family or friends”. Prices around both ideas are currently unknown.
“In countries with our cheaper ad-supported plan, we expect the profile transfer option for borrowers to be particularly popular,” Netflix said.
Netflix’s upcoming advertising option will be their fourth – joining its Basic, Standard and Premium plans.