Scumbag tactics. They encouraged password sharing and now they're "cracking down" on it.
When your service enables one account to watch content on more than one screen, what is it that people are immediately going to think of? It certainly won't be the definition of the term "household." I kept paying for Netflix's two-screens plan precisely so that my parents, who live 150 km away, can watch it as well, and it's never been a problem or discouraged in any way. That was the sole reason for me to pay more money, and password sharing allowed Netflix not just to acquire many more viewers, but also to make a lot more money because people paid more to include family/friends in their plans.
What difference does it make if I physically share a living space with someone? I pay for two screens so what does it matter how far apart the TVs are, since I can't watch on more than those two screens. If this is really such an issue for Netflix, why not just remove the additional screens from being automatically included in plans? You know, just commit to this thing and tell customers that 1 profile = 1 screen, 1 additional user = 1 additional screen, problem solved by software instead of cracking down on us criminals. Netflix won't do that, and it's clear as to why.
A good analogy would be walking into a restaurant with my wife, ordering a dish that I know is too much for one person and asking the waiter to bring a second fork. If I paid for the dish, why would the waiter tell me that I can't share the meal with my wife? It's my choice how I'm going to eat it since I paid for it, so if I pay for two screens, why isn't it my choice who uses the second screen? I know what Netflix's terms say, that is beside the point since Netflix themselves decided to ignore them all this time. Using the term "household" as a criteria is random and vague and makes no sense, there is no real reason why this should be a limitation. And let's not even get into the infinite variations you can have with that term.
I realize Netflix needs to make more money, but the reason for this problem is that they make poor content. Whenever I see that something is a Netflix original, I know the chances are very high that it is either subpar content or just garbage. Many bad decisions and years of poor content creation brought Netflix to this point and now I have to pay more? I suppose that's one way to make sure I am never again a customer.
After paying for Netflix for years, I don't appreciate now being counted among the group of viewers that need to be "cracked down" on, so I decided to remove myself and my money from this mess.