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Netflix has shed some light on how their crackdown on password-sharing is going to work on Tuesday (May 23), which will affect users in more than 100 countries, including the United States and Singapore.

The streaming service emphasised that every account is for use by one household.

"Starting today, we will be sending this email to members who are sharing Netflix outside their household in Singapore," Netflix said.

The email, titled "An update on sharing between households", states that paying customers can add a member outside of their homes for an additional fee.

In the United States, the fee is US$8 (around S$10.77).

Members can also transfer a profile to a new membership that they can pay for so the user can keep their viewing history and recommendations.

Change in policy

Netflix announced earlier this year that more than 100 million households were found to have shared their log-in credentials with external friends and family.

This has impacted the platform's "ability to invest in great new TV and films for our members", it said in a newsletter on Mar. 17, 2022.

Netflix has trialled the paid sharing initiative in Latin America countries such as Peru, Costa Rica and Chile, and has expanded this experiment to larger countries such as Canada, New Zealand and Spain in February.

Netflix had anticipated a "cancel reaction" amongst consumers, and said that they were prepared for borrowers to stop watching if they do not want to convert to extra members or full paying accounts.

However, the platform rationalised that the move will be worthwhile overall, as the company expects borrower households to begin to activate their own standalone accounts and extra member accounts, which is projected to improve "overall revenue".

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