Facebook and Netflix deal has an update. The House Judiciary Committee had an approval for legislation today, which was backed by Netflix. This would ease a law, which is more than two decades old. It related to disclosure of movie-rental information without a customer’s written consent.
Netflix noted that the 1988 law predates many of the technologies popular with consumers today. This even includes online video. This is even a roadblock, for Netflix regarding its agreement, which was signed last month with Facebook, so that the subscribers of both services would be eased off the burden to share their favorite movies.
H.R. 2471, the House bill, had passed the committee in a voice vote. With this, the consumers now are allowed to give one-time online consent to release their rental data. It is thus paving the way for the Facebook-Netflix deal’s U.S. implementation. Nasdaq trading saw Netflix rising 2.5 % to $116.28. The update was recorded on the same date at 12:06 p.m. New York time.
Richard Greenfield, an analyst at BTIG LLC in New York, said in a research note yesterday, “Netflix would benefit immensely from Facebook.” He further quoted, “Given the consumer goodwill/brand damage Netflix has inflicted on itself in the past few months, domestic Facebook integration appears more important than ever for Netflix.” 
the timing of the vote, comes in at a time when the company wants it the most. It is crucial as currently it is grappling with the fallout from recent moves to raise prices and split its mail-order DVD and Internet-streaming services. Moreover, the company had its projected domestic subscriber numbers for the third quarter, cut down on September 15 by 1 million, which the company retreated not before Oct. 10. the decision here made was to separate its DVD and online streaming services.
Talking about the much anticipated Facebook-Netflix deal, Netflix had opted for the move to become a better entertainment destination. But its main purpose might not be achieved to the max as Facebook Chief Executive Officer Mark Zuckerberg, on September 22 had notified its members that the users can use the site to play their friends’ favorite songs through deals with online music services such as Spotify Ltd. The focus of entertainment, as far as Netflix is concerned, would have divided approach.
Surprisingly, Netflix CEO Reed Hastings, who is even a member of Facebook’s board, had taken part in the announcement, but he was quick to state that Netflix members in the U.S. would be restricted by the “outdated privacy law”, which prevents them from sharing mocines on the concerned social networking site. However, the joint venture would be available in the 44 other countries where Netflix operates.
Steve Swasey, a Netflix spokesperson had a not to make, who said, “People are socializing on the Internet in ways that were unimaginable then.” Looking at the original video-privacy law at the point of view of the current scenario, he added that it is “from a previous era and it’s not relevant now.”