Netflix reveals details of how password sharing crackdown will work 

Netflix executives on Tuesday revealed details of their plan to down on users who share their password for their streaming service account. 

People using another’s account will have the option to transfer their profile to their own subscription if they sign up, the executives said in a letter to shareholders during their quarterly earnings call.

Account holders will also have the option to pay more to establish “sub-accounts” to allow others to use their Netflix subscription. 

“We’ve landed on a thoughtful approach to monetizing account sharing and we’ll begin rolling this out more broadly starting in early 2023,” the letter reads. 

“After listening to consumer feedback, we are going to offer the ability for borrowers to transfer their Netflix profile into their own account, and for sharers to manage their devices more easily and to create subaccounts (“extra member”) if they want to pay for family or friends.”

The move comes after Netflix reported its first year-over-year decline in subscribers in ten years, causing the company’s stock to fall by 37%. 

"Our revenue growth has slowed considerably," the company said in April. "Our relatively high household penetration - when including the large number of households sharing accounts - combined with competition, is creating revenue growth headwinds."

According to the streaming service, more than 100 million households worldwide and 30 million in the U.S. and Canada watch the service for free.

Netflix has been running a pilot program to crack down on password sharing in Latin America. As part of the test, several Latin American countries were only given the option to watch Netflix in a designated home and charged $2.99 for each new address that accessed the account. 

In addition, the company announced a less expensive tier to their subscription that will launch on November 3. The new subscription will cost $7 a month but will include ads.