Netflix is planning to roll out paid account sharing in the U.S. toward the end of the first quarter of 2023.
The company estimates more than 100 million households share accounts.
Netflix has been exploring ways to crack down on password sharing, including a log-in verification process in 2021 and the use of sub-accounts for people living outside the account owner's home in 2022.
The latter was tested in Chile, Costa Rica, and Peru and new rules have been rolled out in these countries on account sharing.
Only those within the account holder's home (referred to as their “primary location”) can use the Netflix account.
Devices connected to the Wi-Fi network in the primary location will be able to access the holder’s Netflix account.
In order to share the Netflix account with someone outside the primary location, the company is proposing a small fee to add an extra member to the account.
Netflix users in these three countries may also be blocked from streaming on some devices if they try to access the platform while traveling or after moving.
It is unclear how accounts with plans that allow multiple screens would be impacted by these changes.
Netflix's move to tackle password sharing is a shift from the company's previous stance, where then-CEO Reed Hastings said in 2016 that Netflix wouldn't charge users for sharing their passwords.