Netflix has announced that it will begin measures on preventing password sharing in the first quarter of this year.

The OTT company released its quarterly earnings last week.

The modification was already being tested in a few countries as the streaming giant claimed that users sharing their Netflix accounts reduces the company's revenue.

The company expressed its intent to crack down on password sharing last year.

Netflix has now stated how it intends to help deter users from sharing their account passwords.

According to a post on the Netflix FAQ page, a single Netflix account will now only be accessible by people living in a single household, and people who do not live in the same address as the primary account holder “will need to use their own account to watch Netflix.”

Password sharing with users outside the subscriber's household will be increasingly complicated, and it is likely that an additional amount will be charged to share a single account across different locations.