Odds are, you’ve heard of Netflix’s new password-sharing policy. For a couple of years, Netflix has warned us that they would be cracking down on password sharing. I’m a big believer in Netflix as an investor and the leadership they’ve exhibited over the years under Reed Hastings. I too wondered how exactly they’d navigate such a drastic change in policy. Now we know. According to Netflix, users must log in to their “home” location once per month. So long as they do that, there won’t be an issue with using Netflix on the road and away from home.

There are many misconceptions about the matter. I have seen lots of comments on social media about users cutting ties because they won’t be able to use Netflix while traveling for work or at a vacation house. This simply isn’t true. If you use your traveling device on your home wifi at least once per month (who doesn’t?), Netflix will tag your device as safe to use. If for some reason you don’t and your device isn’t tagged, Netflix has hinted at giving a temporary code for seven days that can be used on the road. This is still being rolled out. So my advice is to be patient. The last thing Netflix is going to do is alienate subscribers.

One thing is for sure, if you like Netflix, don’t panic. They’ve always figured out how to navigate industry changes well. For people that genuinely bum off service from family and friends, can you blame Netflix? This probably should have happened yesterday. I believe this trend will continue for the established streaming services. That means you probably can look for Disney to be next at some point. According to the terms of service no one reads, it already is illegal to share passwords. While Disney has hinted at the crackdown for months, maybe they will work on enforcement soon too. Technology is always evolving and password-sharing is the next big innovative change facing certain parts of the (streaming) industry.