Netflix gets SEC notice over CEO's Facebook post
Friday 7 Dec 2012 12:28 p.m.
Netflix's Chief Executive Officer Reed Hastings (Reuters)
Netflix says it is facing scrutiny from government regulators over a Facebook post made by CEO Reed Hastings in July.
The Securities and Exchange Commission sent notices to Netflix and Hastings regarding the July 3 public post on Hastings' account. The SEC gave Netflix and Hastings a chance to argue why the agency should not take action against them.
On July 3 Hastings wrote on Facebook that monthly viewing on Netflix had exceeded 1 billion hours in June. The SEC says that is material investor information that must be disclosed in a regulatory filing or press release. The company says the information isn't material because it had already disclosed that subscribers were viewing about a billion hours of content per month.
Hastings also responded on Facebook.