Plug-In Failure in Netflix.: Apple Support Communities
Medinaphotography solved the issue. I am surprised how often I have issues with Netflix on the mac. On the PC with and old Windows XP laptop it seems to be much smoother.
I had the same problem and I did the same update. All you need to do is update the plug-in Silverlight.
http://www.macupdate.com/app/mac/26623/silverlight
That should do it
via Plug-In Failure in Netflix.: Apple Support Communities.

