Trial is ongoing in Peru, Chile and Costa Rica

In a bid to raise revenue, Netflix announced earlier this year that they will begin cracking down on password sharing.

The streaming company have begun testing the crackdown on password sharing in Peru, Chile and Costa Rica in an attempt to see how they could roll out the process to other countries.

Netflix has begun offering add-on prices for people using a subscription, but not living in the same household which means that if people are sharing an account, they may be asked to pay more to use the streaming service.

Subscribers can also call Netflix Customer Service to say that someone is using their account in another location, which lets Customer Service hand out a verification code to the user, who can then confirm the code and bypass paying a fee.

Per Rest of World, which first reported the story, "Central and South America represent Netflix’s lowest revenue per user, making them particularly vulnerable to changes in pricing."

For users who wish to stay on the same account in Peru, subscribers can add up to two additional users who they don’t live with for about 8 soles (around €2) per month each.

This option is cheaper than migrating to new accounts, which go for 24.90 soles (around €6.24) per month on a basic plan.  

Netflix will use its findings in these markets to dictate policy for password sharing globally, with the crackdown on password sharing to be implemented by the end of the year globally.

The plan has run into some problems however, with controversy over what "household" means in the context of Netflix accounts.

Most rational people take it as anyone in your immediate family, but Netflix has always defined it as people who physically live in the same building as you, and this move has caused significant controversy among users in Peru.

Netflix's financial outlook makes for alarming reading for the streaming giant, with the years of borrowing to fund the likes of 'The Irishman', 'Don't Look Up', 'Red Notice', and upcoming action film 'The Grey Man' proving financially unsustainable for the financial giant.

Per the New York Times, the company has somewhere between $10 to $15 billion in debt, and the recent drop in subscribers owing to the cost of living crisis and the suspension of services in Russia has hit Netflix's bottom line even further.