A crackdown on password sharing has already begun in countries such as Peru, Chile and Costa Rica.
In order to make itself more profitable, the streaming network said more than 100 million viewers using "borrowed" accounts will begin to change.
"While our terms of use limit use of Netflix to a household, we recognise this is a change for members who share their account more broadly,” Netflix said in its report to shareholders.
"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. As is the case today, all members will be able to watch while travelling, whether on a TV or mobile device.”
It comes after Netflix's new plan 'Basic with Ads' emerges, offering Australian subscribers $6.99 a month - four-dollars less - to see ads throughout content.
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