Following pilot programs in several Latin American countries, the company decided to crack down on password sharing.
The main account holder will be charged extra for each user who lives in a different household. If it is similar to the pilot programs, account holders should pay around $3 per month to include up to two people who live outside their household.
The change will come into effect in early 2023 and was announced during the company's most recent earnings call.
If an account holder decides to politely ask their guests to stop using their password, they can now migrate their profile and all of their settings to a new account.
In July, Chengyi Long, director of product innovation, highlighted the company's issue with "widespread" account sharing between households, saying that it "undermine our ability to invest in and improve our service."
The company added 2.4 million users during the July-to-September quarter, according to the data posted on Tuesday.
After losing 200,000 subscribers in the first quarter and almost one million in the second, and forecasting 4.5 million new subscribers for the current quarter, the company will be happy.
Following the publication of the results, Reed Hastings exclaimed, "Thank God we're done with shrinking quarters."
The ad-supported tier is $3 cheaper than the ad-free Basic tier. The basic with ads starts on Nov 3.
Disney+ is introducing an ad-supported tier on Dec 8 for $8 per month.
Digital Trends has a list of new movies and TV shows that can help you decide between streaming services or signing up for the first time.
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