Netflix to stop password sharing in coming months; will roll out paid-sharing plan

(CNN NEWSOURCE) — Netflix is cracking down on password sharing.

In a letter to shareholders, the streaming giant said it will start blocking subscribers from sharing passwords with people outside their households in the coming months.

And Netflix plans to roll out a paid-sharing plan.

It piloted a similar program in Latin America, where subscribers could add a sub-account for an additional $3 a month.

Netflix says it realizes some people may cancel as a result but it expects that borrower households activating their own accounts will counter-balance that revenue loss.

Currently, Netflix allows multiple profiles under a single account but the profiles are intended to be used by members of the same household.