LOS GATOS, Calif. — 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.”

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

Also, subscribers will have the ability to create sub-accounts. Price points surrounding both ideas are not known at this time.

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