NETFLIX has caught up with what many subscribers are doing when it comes to password-sharing to pay less for the streaming service.
The streaming giant revealed a fall of 200,000 subscribers and it surely raised eyebrows across the board for those concerned with the financial aspect.
Is Netflix adding ads?
People are sharing their passwords with other households and help make the plan cost less for everyone.
This means that Netflix has less subscribers and so they make less money.
Netflix were aware of this situation and boss Reed Hastings admitted that it was "something you have to learn to live with."
But now that it is hugely affecting the company's accounts, they cannot turn a blind eye to it anymore.
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Netflix announced: "Our revenue growth has slowed considerably.
"Our relatively high household penetration – when including the large number of household sharing accounts – combined with compeition, is creating revenue growth headwinds."
Advertisements might be the solution for Netflix to generate more revenue.
An insider told The Sun that a cheaper plan could cost £5.49 a month, but will include ads.
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Those who want no ads will have the option to pay a pound or two more.
Advertisments can see Netflix earn more revenue from companies who want to promote their product on the streaming service and also from users.
Users who share their passwords with other households will be forced to pay more.
What are Netflix's current subscription plans?
Netflix have three plans in place which are the Basic, Standard and Premium.
The Basic Plan costs £6.99.
One can only use this account on one screen at a time and can have downloads on one device only.
The Standard Plan costs £10.99 and increases the number of devices to two.
It also offers users with HD content.
The Premium Plan then offers users the possibility of having four screens used at the same time and costs £15.99.
This plan gives users the opportunity to view content in Ultra HD.
All plans offer users with unlimited movies, TV shows and mobile games.
These can all be viewed on a laptop, TV, phone or tablet.
Are Netflix changing their password-sharing rules?
Users can share their password with those who live in the same household.
It was revealed that Netflix are aware that some are also doing so with people who do not live in the same household.
This raised the Netflix boss' eyebrows and the company might make changes to password-sharing rules.
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In Chile, Costa Rica and Peru, users are asked to pay $2 to $3 (£1.53 to £2.30) extra for any additional profiles.
This might be incorporated in UK user regulations too or something similar for sure.
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