It looks like Netflix's password-sharing restrictions haven't been finalized yet.

Earlier this week, the streaming giant updated its rules regarding sharing passwords, saying that a "Netflix account is for people who live together in a single household." Netflix clarified that "people who do not live in your household will need to use their own account to watch Netflix."

Obviously, fans didn't take to the update well and Netflix responded by claiming that this information was false. Or, to be more specific, Netflix explained that the "new" rule "is only applicable to Chile, Costa Rica, and Peru."

Netflix has wanted to shut down password sharing for a long time. The streamer believes that sharing passwords across multiple households is a huge factor why the platform has stagnated, as it refuses to admit that canceling good shows is a much bigger problem it has to solve. Banning users from different households from sharing passwords makes sense on paper but Netflix doesn't have the leverage it once had.

Keep in mind that competing platforms have just as many quality shows as Netflix and, often, at a lower price. Case in point, Prime Video has The Boys and The Lord of the Rings: The Rings of Power. On the other hand, HBO has The Last of Us and House of the Dragon. Netflix might still hold a significant lead in terms of viewership hours, but unlike Amazon and Disney, the streamer can't survive just "barely" edging its competition.

Netflix still needs to iron out several details about its updated password-sharing rules before it thinks of rolling them out to other territories. Otherwise, the company risks losing its grip at the top spot of the streaming market and it's a slippery slope from there.

If it's any consolation, Netflix is starting to step up with its offerings. In addition to new seasons of You, Cobra Kai, and The Sandman, subscribers can look forward to watching One Piece, Zack Snyder's Rebel Moon, and Murder Mystery 2 later this year.