Netflix announced that subscribers who share their passwords with people who do not reside in the United States (U.S) and are not living in the same household as its U.S subscribers will pay an additional US$8 a month.

The streaming service announced yesterday (May 23) that it will limit viewership of its content to those living outside the same household as its subscribers. Customers who have a standard or premium plan will now have to pay the additional fee for another person outside their household to use their password.

Members can also transfer a person’s profile so the user can keep their viewing history and recommendations.

The company had estimated that more than 100 million households had supplied their log-in credentials to friends and family outside their homes. As of the end of March, Netflix’s paying customers totaled 232.5 million globally.

SUBSCRIBERS TO DECLARE HOUSEHOLD LOCATION

The streaming service noted that everyone living in the same household as the U.S subscriber can view content at home or on holiday.

Reports from a Netflix spokesperson are that primary account holders will be directed to set their household location on their device. Those who live outside of the household will be identified based on factors such as how often their device has used the Wi-Fi at the primary location.

Netflix is experiencing a decrease in growth and is seeking to introduce new ways the company can profit.