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

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

(Dado Ruvic/Reuters)

The free-viewing party is over at Netflix.

The streaming company plans to crack down on password-sharing next year, including by rolling out “sub-accounts” that allow members to give people outside their households access to their service.

Netflix added 2.4 million subscribers during the third quarter, it said Tuesday, a big lift for a company that watched its once-dominant foothold crumble earlier in the year: It was hemorrhaging subscribers within the overstuffed field of competitors and giving up a chunk of its business as it backed out of Russia.

But the company’s financial results pleased Wall Street, sending its stock soaring in after-hours trading.

“We’re still not growing as fast as we’d like,” Netflix Chief Financial Officer Spencer Neumann said on a call with investors Tuesday. “So we’re building momentum. We’re pleased with our progress, but we know we’ve got a lot more work to do.”

Now the company is poised to change its strategies, including by exploring lower-cost plans with advertising and trying to wring money out of the 100 million households that use Netflix through shared log-in credentials and do not pay for the service. Here’s how that might play out for consumers.

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