it doesn't work you can't watch any movies/videos, it prompts you to sign in again and then it says PSN is down and exits you to home
I had the same problem, but as I said, you have to keep trying until the background loads, then try it once more (exiting the prompt) and it will work.
You have to try logging in a couple times until you can see the netflix program in the background THEN cancel. I promise, it works. There's no reason it shouldn't work on anybody's unless they're on a different version.