Netflix says it 'updated' new password sharing policies that had users melting down

Netflix and chill (out), password sharers.

After intense backlash surrounding what appeared to be the first signs of the company's upcoming password sharing crackdown, Netflix (NFLX) clarified no official announcements have been made outside of the current test countries.

"For a brief time last Tuesday, a help center article containing information that is only applicable to Chile, Costa Rica, and Peru, went live in other countries. We have since updated it," a Netflix spokesperson told Yahoo Finance.

Last week's updates appeared to show the company would require users to identify a "primary location" for all accounts that live within the same household. News which had users suggesting this would be a bridge too far, and threatening to leave the platform as a result.

Users would then need sign into the home Wi-Fi of the primary location at least once every 31 days to ensure their device is not blocked. Temporary codes would need to be used for traveling members, which would only remain valid for seven consecutive days

Netflix said it would use information such as IP addresses, device IDs, and account activity to determine whether a device signed into the account is connected to the primary location.

In a recent survey, investment firm Jefferies highlighted concerns surrounding the company's crackdown on password sharing, particularly among the account freeloaders Netflix hopes to convert.

According to lead analyst Andrew Uerkwitz, about 62% of the 380 Netflix password borrowers surveyed said they would stop using Netflix once the crackdown takes effect.

Only 10% of those polled said they would move to create their own account for $9.99 a month, hinting password borrowers don't see enough value in the platform. The survey also suggested competitors could greatly benefit from Netflix's crackdown.

Some 35% of respondents said they can replace Netflix with another service, while another 31% added they don't enjoy the content enough to justify paying for it.