Netflix once encouraged users to share their passwords as a way of marketing their platform and promoting themselves. As the company has faced the growing competition of streaming services such as Hulu and Disney+, however, it has begun cracking down on the practice in an effort to convert freeloaders into paying customers. Until now, most of those efforts have been restricted to non-US countries.

Netflix has recently announced that they will be ending password sharing in the US. In a report Netflix said, “Paid sharing is another important initiative as widespread account sharing (100M+ households) undermines our ability to invest in and improve Netflix for our paying members, as well as build our business” (PR Daily).

This new development has created much backlash and widespread criticism, with customers infuriated with the new fees. While Netflix is anticipating some customers to cancel their subscription,  they’re expecting growth in membership as customers adjust to the paid sharing change. They also expect customers who may cancel to resume their membership later on, according to the Netflix report. 

Now users will be able to add two additional people to their Netflix Standard or Premium plan, but they will have to pay extra — it’s expected Netflix will charge US subscribers between $7 and $8 per subaccount. In Canada, where account-sharing fees have been implemented, Netflix reports that its paid subscriber base is “larger than prior to the launch of paid sharing” and is growing (CNET.com). Based on this growth, the company expects to achieve similar results in the US.