
Netflix doesn’t have a Facebook app!
Well they do, just not in the United States. There is a Facebook app for Netflix in 46 other countries; however, an estimated 23.4 million of Netflix’s 29 million subscribers live in the United States. We can safely say that Netflix’s Facebook presence hasn’t even begun.
So, what is stopping the rent-by-mail/video streaming giant from engaging in proper social networking? A little thing called the Video Privacy Protection Act (VPPA), Pub.L. 100-618 (the current law can be found at 18 USCS § 2710). VPPA was signed into law by then President Ronald Regan in 1988, and prevents any videotape service provider from disclosing rental information outside the ordinary course of its business, which is narrowly defined in § 2710 to mean, and I summarize, “keep people’s video rental history private.” Period.
More after the JUMP…
If you’re inclined to read more, Ice Miller, LLP has a thorough write up on VPPA.
Blockbuster helped bring the VPPA into law after publishing Supreme Court nominee, Robert Bork’s, video rental history. It was also sued in 2008, for violating VPPA in connection with Facebook’s Beacon program. Facebook eventually had to provide a more clear way for companies to turn off the Beacon, which tracked Facebook users’ e-commerce habits.
I think Facebook needs to amend its privacy policy and practice to quit storing all our freaking data! As these examples show us, there can be dangers to companies wanting to integrate with Facebook. The bigger issue is that Facebook can essentially collect free data simply by because its users also use other services. Doesn’t seem fair to me.
Without admitting guilt, Netflix recently had to paid out $9 million to settle a lawsuit claiming it violated VPPA, bringing its quarterly earnings down a notch. See page 31 of Netflix’s 10k filing for more details. Essentially, the plaintiff claimed that Netflix illegally retained his video rental records after he discontinued service. The law requires Netflix to destroy any personally identifiable information connecting an individual to video rental history records within a year “from the date that the information is no longer necessary for the purpose for which it was collected.”
Having recently been stung by a VPPA suit itself and having learned from Blockbuster’s mistakes, it is unlikely we will see a Netflix app on Facebook anytime soon. At least in the United States. However, Netflix hopes to change the law with HR 2471, which passed the House vote and is currently before Senate. It’s short, and you can read the full text of the bill here.
What do you think? Should you be allowed to opt into a Netflix/Facebook App to share our video history with friends? It would sure be easier than having to keep two windows open and manually update our status.