Streaming giant Netflix (NFLX) has begun cracking down on password sharing in the U.S.
Specifically, the company has started alerting customers about its new policy against password sharing, noting that accounts are only to be shared within a single household.
Emails reinforcing the password sharing policy say that Netflix customers can pay an extra monthly fee of $7.99 U.S. per person to allow people outside their home to use their account.
Netflix has warned for more than a year that it will be tightening its guidelines on password sharing to boost revenue and subscriber numbers.
However, while Netflix has cracked down on password sharing in other countries, including neighbouring Canada, it had delayed implementing the move in the U.S. until now.
The company estimates that more than 100 million households worldwide share accounts, which is about 43% of its global user base.
Netflix has said that password sharing deprives it of billions of dollars in annual revenue and hurts its ability to invest in new content.
The company said that its password-sharing crackdown has negatively impacted its subscriber growth internationally. However, the company still managed to add 1.75 million net new customers during this year’s first quarter.
Netflix’s stock has risen 97% in the last 12 months to $355.99 U.S. per share as the company has taken steps to improve its finances, including adding advertisements to its streaming platform for the first time.
