It's a very strange error. I think that the problem is with the server because if I use the 1.04 the freeze problem appears. Also, when it's prime time (my ISP is known by Netflix for not prioritizing Netflix packets making it slow in prime time) I can't see any video; the Netflix app says "We're Having Trouble Playing This Title Right Now." or something similar, I see the message in Spanish. But if I upgrade the app in that moment and I use psnpatch or I put the same video in my PC all works very well. I think the 1.04 version bypasses the servers check and only works with the one that no fails.
More interesting things. My Netflix account is shared by four members of my family. All of us use the PS3 with a CFW. Just me have the server errors. They are using the spoof version of the app without problems. I was in 4.78 HABIB COBRA and now in 4.80 REBUG. My family uses older CFW (one of them 4.76 habib cobra, I don't know the others but even older). All of us are in the same country but different cities.
@pinky I don't understand what do you mean with "banned users". Banned in PSN, in Netflix, the console..? My PSN account is not banned (I use it pretty well in my PS4) and my Netflix account neither (I can use it in my PS4 and PC). I don't know if my console is banned because when I use the psnpatch I spoof my data using my YLOD PS3 information.
Now, I'm remembering that the first time that Netflix didn't work, I saw a message like "Your netflix data cannot transfer to another system", and it was the first time I'd seen it. Now I see that message every time I change the app and I test it. I think because I use the psnpatch with the PSID spoof and I go back to the nopsn version with my real PSID.
Maybe is this the reason because the nopsn version stop working? If you had used psnpatch before?
Maybe you're right pinky, maybe it's an encryption error.
I'm testing things but I'm running out of ideas and I can't access to my relatives' PS3s.
Sorry again for my poor English.