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Netflix releases its guide for password sharing. Here's what to know

There are five steps you'll need to take to verify your account.

Netflix finally released its plans to crackdown on password sharing. This means no more handing out your password to friends, neighbors or even family members outside your home — at least without springing for a better plan.

Heidi Chung, Variety’s intelligence platform media analyst and correspondent said on TODAY that the crackdown comes amid the company's goal to get the subscriber growth back on track.

“When you pass on these kinds of price increases or these extra fees to consumers, it’s not a popular move,” Chung said. “Netflix held off as long as they could before they ultimately had to do that.”

Netflix has yet to release a set date on when the guidelines will go into effect.

Curious how the new guidelines might affect you? Keep reading to find out.

Who can use your Netflix account now?

According to Netflix's website, accounts are for “people who live together in a single household.” So, people that live in a separate household will not be able to use your account.

How does Netflix detect devices within households?

To verify accounts within the same household, Netflix said they will use information including IP addresses, device IDs and account activity from devices already signed into the Netflix account.

What does someone need to do to verify a device?

When an account outside of your household consistently logs into your account on a Wi-Fi other than your main one, you may be asked to verify the account.

According to their website there are five steps of the verification process:

  1. Netflix sends a link to the email address or phone number associated with the primary account owner.
  2. The link opens a page with a 4-digit verification code.
  3. The code needs to be entered on the device that requested it within 15 minutes.
  4. If the code expired, you will need to request a new verification code from the device.
  5. Once successful, that device can be used to watch Netflix. (Device verification may be required periodically.)

Is there a limit on how many people can use your account?

The number of people that can use your account is dependent on your Netflix plan. The basic plan allows for one user to watch on a device, while the standard plan allows for two and the premium plan allows for four.

Is there anything different about using your account while traveling? 

"If you are traveling or live between different homes, we want you to be able to enjoy Netflix anywhere, anytime," the Netflix website says.

If you are the primary account owner (or live with them) you shouldn't have to verify anything about your account while traveling. The same goes for splitting your time between different locations.