Freeloaders beware — Netflix is about to clamp down on unauthorized password sharing.

On the heels of its bombshell announcement that CEO and co-founder, Reed Hastings, shall be stepping down, the streaming large additionally revealed that it might crack down on individuals “borrowing” its service within the U.S. (i.e., individuals who mooch off of different individuals’s accounts to observe Netflix).

“In the present day’s widespread account sharing (100M+ households) undermines our long-term skill to spend money on and enhance Netflix, in addition to construct our enterprise,” the corporate stated in a letter to shareholders.

In different phrases, sharing shouldn’t be caring.

Certainly, Netflix blamed rampant account sharing as one purpose for its large subscriber loss final yr.

So beginning between now and March, Netflix plans to restrict accounts to customers inside one family as an alternative of permitting sharing between a number of exterior customers. Account holders who wish to share with customers they do not stay with should pay an additional charge.

Associated: Netflix Publicizes Extra Layoffs

How will subscribers react?

The corporate has examined this stricter coverage with some success in Latin America. However based mostly on that have, they concede that the choice to restrict subscriptions to households will trigger some cancellations within the brief time period.

“We anticipate some cancel response in every market once we roll out paid sharing,” the shareholder letter reads.

In an earnings name earlier as we speak, newly minted co-CEO Greg Peters, with Ted Sarandos, anticipated buyer blowback.

“This is not going to be a universally widespread transfer,” he stated.

However finally, the corporate believes reveals like Stranger Issues and Megan will win individuals over.

“It is the must-see-ness of the content material that may make the paid sharing initiative work,” Sarandos stated.