Investors definitely liked the news, sending Netflix shares up almost 6% in Wednesday midday trading.
The DVD-rental and video streaming service has partnered with Facebook (NASDAQ:FB) to bring social media features to its 27 million U.S. streaming subscribers. Subscribers outside the U.S. have had social media options since 2011, Bloomberg noted.
U.S. law had blocked Netflix from allowing a social media tie-in to let users to share their viewing histories with friends. The company successfully lobbied Congress to amend the Video Piracy Protection Act to permit American subscribers to get the Facebook features.
The 1988 law was passed after journalists obtained Judge Robert Bork’s video rental history during his failed Supreme Court nomination battle.
Netflix expects the social media features to boost streaming viewership by allowing users to alert their friends of new titles and comment on what they are watching.