Netflix says it’s finally cracking down on password sharing. Here’s what to know

Attention all Netflix freeloaders: The streaming service is cracking down on password sharing after working on a way to restrict users from accessing accounts that don’t belong to their family.

This change is expected to affect about 100 million users, according to the company, and will be launched by the end of March.

“This is not going to be a universally popular move, so there will be current members who are unhappy with this move,” Gregory K. Peters, COO and chief product officer, said during a January 19 call with Netflix investors. “But in general… we will see people become new subscribers, essentially borrowers creating their accounts or additional monetization.”

Netflix has done “test runs” in countries like Peru, Costa Rica, and Chile, where users outside of the primary account family had to create additional accounts for around $2-$3. The company did not share how much the additional costs would cost in the US.

Alternatively, users can also transfer their profiles to brand new accounts and keep their personalized recommendations, the company said.

Heidi Chung, media analyst and correspondent for analytics platform Variety, told TODAY that the changes are about “getting subscriber growth back on track for the company.”

“When you pass on these price increases or these additional fees to consumers, it’s not a popular move,” Chang said. “Netflix held back as much as they could before they ended up having to.”

Netflix announced the two features as a way to “monetize account sharing” in an October 2022 shareholder letter and said the changes would go into effect in early 2023.

“People are moving. Families are growing. Relationships end. But throughout these life changes, your Netflix experience should remain the same,” the streaming service announced on Oct. 17.

“To transfer your profile, go to the Transfer Profile option when you hover over your profile icon in the drop-down menu on the homepage, then simply follow the instructions. You can always turn off profile sharing in your account settings at any time,” Netflix said at the time.

Chung said Netflix likely won’t be the last streaming service to crack down on password sharing as the industry has become more competitive in recent years with streamers like Hulu, Apple TV, HBO Max and Disney Plus.

“Many Americans are tightening their belts and clients. And companies are doing it too,” Chang said.

Well, maybe Netflix would be happy to make more money. The streaming service recently announced a trial that would charge account holders for sharing their Netflix passwords with other people, and social media quickly rioted. According to NBC News youth and internet culture reporter Kalhan Rosenblatt, the company says the increase in its revenue from the new fee will allow for more premium content.

In November, Netflix also introduced a new ad-supported plan where subscribers can pay less than its traditional ad-free model. It costs $6.99 per month, which is three dollars less than the service’s basic ad-free plan.

The move comes after Netflix announced in July that it had lost about a million subscribers in the previous quarter.

This story originally appeared on TODAY.com. More from TODAY: