Netflix is poised to crack down on account sharing. What happens now?

The company estimates that 100 million households access the streaming site without paying

Netflix shares erased more than a third of their value on Wednesday after the streaming service unexpectedly reported its first quarterly loss of subscribers in a decade. (Dado Ruvic/Reuters)

The free-viewing party is over at Netflix.

After years of dominance in streaming, Netflix’s foothold is crumbling: It is hemorrhaging subscribers within the overstuffed field of competitors and giving up a chunk of its business as it backs out of Russia. Its stock tumbled 35 percent Wednesday, wiping out tens of billions in market capitalization, after Netflix announced its first quarterly loss in subscribers in a decade. (By its own estimation, Netflix had expected to add 2.5 million subscribers.)

Now the company is poised to change its strategies, including by exploring lower-cost plans with advertising and by trying to wring money out of the 100 million households that access Netflix without paying by sharing login credentials. Here’s how that might play out for consumers.

Netflix shares tank 35% after it posts 1st subscriber loss in a decade