Update freezes the PS3 & causes hard reset of system!
Site:
Since 10/17/13, the Netflix Update that the PS3 says is available, goes to a black screen if you choose to update.
The PS3 then has to be unplugged in order to restart the system and use it for anything else.
Reinstalling the Netflix app did not help.
If you choose the cancel option, you are able to stream like normal.