On July 3, 2012, the CEO of Netflix Inc. did what many of us frequently do: updated his Facebook account. However, he updated his account with a post stating that Netflix viewing “exceeded 1 billion hours” in the month of June.
I spent hours this weekend glued to my computer screen. Curious to know if “House of Cards” would entertain as promised, I watched the first few episodes as a skeptic, only to be rewarded with solid acting, clever writing and a story line that kept on giving.
In the wake of the SEC recommending an enforcement action against Netflix, Inc. and its CEO for social media postings that potentially violate Regulation FD, public companies must increasingly ensure that they understand, and comply with, their obligations under Regulation FD.
The National Association of the Deaf had sued Netflix under the Americans with Disabilities Act because it claimed that the Internet was a place of public accommodation and close captioning was necessary to insure that deaf individuals had equal access to the services.
Make no mistake, the Securities & Exchange Commission has a lot on its plate right now—from the JOBS Act, to combatting insider trading to a number of other things. With that in mind, getting their rules and regulations up-to-date during a time in which the technological landscape is changing drastically probably isn’t their highest priority. As a result, incidents like the one between the SEC and Netflix and its CEO tend to happen. See, Netflix CEO Reed Hastings shared a bit of news via a Facebook post; the SEC labeled it as “selective disclosure” and is now going after both Netflix and Hastings.