Netflix looking to crack down on password sharing

The Netflix logo is seen displayed on a smartphone. (Photo Illustration by Rafael Henrique/SOPA Images/LightRocket via Getty Images)

It's how a lot of people stream their favorite shows, but the password sharing party may soon be over for Netflix users.

The company says they're looking at ways to crack down on password sharing.

Officials didn't say how they plan to do this, but they're already monitoring the number of devices logged on and watching their service at a given time.

On October 16, during Netflix's Q3 earnings interview, password sharing was brought up.

"Another topic that we haven't talked about a little while, is that a password sharing or stealing or whatever you want to call it. As we get to a more mature growth trajectory in the U.S., does that come back into being something important for you to address and how do you address it without alienating a certain portion of your user base? How do you strike a balance there?" asked Michael Morris, Wall Street Analyst at Guggenheim.

Netflix's Chief Product Officer, Gregory Peters replied, "Yeah, I think we continue to monitor it. So we're looking at the situation and we'll see, again, those consumer-friendly ways to push on the edges of that, but I think we've got no big plans to announce at this point in time in terms of doing something differently there."

This move comes after the company lost subscribers for the first time in eight years.

Netflix's standard and premium plans currently permit two to four devices to stream content at the same time.