(WGN) — The rumors are true: Netflix will begin its password-sharing crackdown early next year, according to the company’s latest earnings report.

Following Netflix’s announcement last week that the company will offer a cheaper $6.99 option involving ads, they now are looking to “monetize account sharing.”

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In April, Netflix reported its first loss of subscribers in more than a decade, which had a negative impact on their stock. At the time, executives blamed increased competition and password sharing.

The company said it has landed on a “thoughtful approach” and announced Tuesday that those benefiting from sharing will have the ability to transfer their profiles into their own new accounts.

Also, subscribers will have the ability to create sub-accounts “if they want to pay for family or friends.” Price points surrounding both ideas are not known at this time.

“In countries with our lower-priced ad-supported plan, we expect the profile transfer option for borrowers to be especially popular,” Netflix said.

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Netflix’s upcoming ad option will be their fourth — joining its basic, standard and premium plans.