Netflix gets SEC notice over CEO's Facebook post

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Associated Press

Posted on December 6, 2012 at 8:01 PM

Updated Thursday, Dec 6 at 10:04 PM

NEW YORK (AP) — 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 Inc. 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.

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