retail news in context, analysis with attitude

The Financial Times reports that Netflix CEO Reed Hastings is being scrutinized by the US Securities and Exchange Commission (SEC) over a July 3 posting on Facebook saying that Netflix members had watched more than 1billion hours of Netflix programming for the first time in June.
According to the story, the SEC's issue with the posting is related to a federal regulation saying that a public company has to release material performance information to all investors at the same time. In this case, Hastings posted the info on Facebook, but there was no press release or filing with SEC noting the milestone.

The story suggests that how the SEC disposes of the case " is likely to be watched by corporations that increasingly tap social media to disseminate information."

For his part, Hastings remains unrepentant, arguing that the Facebook posting was "very public," though he concedes that this is a "fascinating social media story."
KC's View:
Probably more people read the Facebook posting than would have read a press release or a document issued by the SEC. Time for the regulators to get with the times...