Major update to Netflix with new rule change set to impact viewers

The streaming company has announced it’s finally cracking down on a widely-used feature, saying it “undermines” Netflix’s success.

Netflix has announced a major change to crack down on account sharing.

The streaming giant has unveiled its plans to alter the way users can access the service in the wake of a difficult year for the streamer, which lost one million subscribers in the quarter leading up to July last year. In the quarter before that, its stock crashed 25 per cent, wiping $US54 billion off its value.

The long-awaited shake-up to Netflix’s password settings means viewers will only be able to watch their favourite TV shows and movies if they create their own login.

Viewers will soon need to create their own login, with Netflix cracking down on password sharing. Picture: Olivier DOULIERY / AFP

During its recent earning report, the company claimed it had been testing out a new feature to stop people being able to share their Netflix account with friends and family.

Netflix said there will be a new option to add “paid sharing” which will allow multiple profiles but cost less than a full subscription.

The company stated in its earning report: “Later in Q1, we expect to start rolling out paid sharing more broadly.

“Today’s widespread account sharing (100M+ households) undermines our long term ability to invest in and improve Netflix, as well as build our business.”

If you want to watch the upcoming second season of the smash hit series Wednesday, you’ll likely need your own login. Picture: Netflix

And the same goes for the looming third season of Bridgerton. Picture: Liam Daniel/Netflix

There is not yet any indication when the feature will be rolled out.

Netflix also stated: “We’ve worked hard to build additional new features that improve the Netflix experience, including the ability for members to review which devices are using their account and to transfer a profile to a new account.

“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.”

This story originally appeared on The Sun and was reproduced with permission