Netflix (NFLX) has announced a new fee in Canada as the streaming giant cracks down on password sharing that it says costs the company billion of dollars in annual losses.
Under the new rules, premium and standard account holders can buy an extra member slot for $7.99 per month.
High definition 4K subscribers, who pay $20.99 per month, can add up to two members who don't live in their house to their account.
And standard subscribers, who pay $16.49 a month for a Netflix account, can add one additional member for the same $7.99 monthly fee.
Basic plans, which cost $9.99 per month, and ad-supported plans, which cost $5.99 monthly, will not be able to add more members, said Netflix.
Netflix did not say when it would begin enforcing the new rules but characterized the announcement as the first step toward requiring viewers in Canada to have an account for their own household.
The company noted that subscribers who move homes in Canada may be required to update their primary location to avoid being locked out of Netflix.
Netflix estimates that more than 100 million households worldwide share passwords and accounts, which impacts its ability to invest in new content.
Netflix’s stock is down 11% over the last 12 months at $366.83 U.S. per share.
