Streaming giant Netflix is set to roll out new rules with regard to password sharing to curb the losses it saw last year.

The company had been planning such a move for a long time, and now it has also given a tentative timeline for when the changes will come into effect. It also plans to introduce a paid sharing option to discourage people from sharing passwords with others.

"Later in Q1, we expect to start rolling out paid sharing more broadly. Today's widespread account sharing (100M+ households) undermines our long-term ability to invest in and improve Netflix, as well as build our business," read an excerpt from the company's earnings report.

However, it has not announced the exact date and the areas where it will be implemented first.

The company added that it has introduced several new features, including the ability for members to review which devices are using their account and to transfer a profile to a new account.

"As we roll out paid sharing, members in many countries will also have the option to pay extra if they want to share Netflix with people they don't live with," it said.

It has already been carrying out tests in countries like Costa Rica, Chile, and Peru. Subscribers in these countries can add up to two extra members to their accounts for an additional $2.99 ( £2.41), 2,380 Chilean pesos ( £2.21), and 7.9 Peruvian sols (£1.67).

It also launched a cheaper streaming option in November last year, which includes up to four or five minutes of advertisements per hour. It costs £4.99 per month and has been available since November 3, per The Mirror.

Netflix saw a loss of 200,000 subscribers globally at the beginning of 2022. It has since been trying to make up for the losses and increase its subscriber base.

It says that out of the 222 million households worldwide that pay for a Netflix account, the passwords are getting shared with more than "100 million additional households."

However, things are looking up for the streaming giant. It added 2.4 million new subscribers towards the end of the last year, and is expected to gain 4.5 million new subscribers in the next three months.

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Netflix says subscribers sharing accounts with other households is among its growth challenges Photo: AFP / CHARLY TRIBALLEAU