Netflix to stop password sharing soon

(CNN) – Netflix is cracking down on password sharing.

In a letter to shareholders, the streaming giant said it will start blocking subscribers from sharing passwords with people outside of their household in the coming months.

Netflix also plans to roll out a paid-sharing plan.

It piloted a similar program in Latin America, where subscribers could add a “sub-account” for an additional $3 a month.

Netflix says it realizes some people may cancel as a result. But it expects that borrower households activating their own accounts will counter-balance the revenue loss.

Currently, Netflix allows multiple profiles under a single account, but the profiles are intended to be used by members of the same household.