Five questions answered on Netflix's Facebook "violation"

Digested.

Netflix Inc’s chief executive Reed Hastings is in trouble with the US Securities and Exchange Commission (SEC) because of something he posted on Facebook. We answer five questions on his controversial post.

What did Hastings say?

On 3 July Hastings announced on a public Netflicks Facebook page accessible to 244,000 subscribers that one billion hours of video was being viewed a month by members of the video streaming website. 

He said exactly: "Netflix monthly viewing exceeded 1 billion hours for the first time ever in June."

So, what’s the problem with this post exactly?

The way the information was disclosed is the problem. The SEC believes that this particular figure is material information and therefore should have been disclosed in a press release or regulatory filing.

SEC's Regulation FD, adopted in 2000, requires public companies to make full and fair public disclosure of material non-public information.

What kind of action is the SEC taking?

The "Wells notice," as it is known as, that was received by Netflicks and filed by the company as regulations dictate, states that the SEC is planning on bringing civil action against the company because of the post made by Hastings.

The SEC staff will recommend the full commission pursue either a cease-and-desist action and/ or civil injunction against Netflix and Hastings.

What has Hasting said about his contentious Facebook posting?

According to The Telegraph, Hasting said yesterday that his posting was public enough: "First, we think posting to over 200,000 people is very public, especially because many of my subscribers are reporters and bloggers," 

In a letter posted alongside the regulatory filing he added "We remain optimistic this can be cleared up quickly through the SEC's review process." 

What are other people saying?

Wedbush Securities analyst Michael Pachter told Reuters: "It's totally disingenuous to say that his statement wasn't material when the stock went from under $70 a share to more than $80 and the only data point was that post."

While, Joseph Grundfest, former SEC commissioner and Stanford Law School professor also told Reuters: "The evolution of social media presents the SEC with some very interesting regulatory challenges. But if they're worried about social media, there are ways for them to address that without threatening to sue Reed Hastings. They should have a rulemaking where they can ventilate these issues. "

Netflix is in trouble. Photograph: Getty Images

Heidi Vella is a features writer for Nridigital.com

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Nigel Farage's exclusive Brexit plan has just been revealed and it's very telling

The panic is over.

If, a week on from Brexit, you're staring at the bottom of your gin bottle and wondering whether you'll ever afford to go on holiday again, then stop worrying. 

There's a plan.

Social media users have been sharing a link to an exclusive reveal of Nigel Farage's plan for the UK departure from the EU. Users are invited to: "View The Brexit Plan that was but together by the Vote Leave campaign, UKIP and Nigel Farage.

Here it is.

Highlighted policy topics include hot potatoes like UK access to the single market, international trade agreements and the rights of EU nationals working in the UK. You just have to click on the red button.

 

Oh. 

It seems the plan might be permanently out of reach. 

Every time you try to click on the red button with your mouse, you'll discover that it leaps away to another part of the page. So far, we haven't heard of anyone who has managed to catch the elusive button and discover the details of the brilliant plan. 

Other plans that have not been very easy to click on this week include: Boris Johnson's plan to be Prime Minister, Jeremy Corbyn's plan to lead a unified Labour opposition and David Cameron's plan to win the EU referendum in the first place.

As it turns out, a week after Brexit we are still waiting for a definitive plan. In the meantime, you can read: