If you've rooted your Android-powered phone and installed a nightly build of the CyanogenMod custom ROM, you probably have run into problems with the Netflix app at some point in time.
The problem had to do with Netflix' paranoia around securing their digitally delivered content, and only allowing playback on certain "approved" devices. Whenever Netflix pushed an update to their app it would usually stop working properly on phones running CyanogenMod ROMs.
CyanogenMod developers, being the skilled people they are, would come up with an update within a few days and Netflix would work again (albeit unsupported by the app maker) until the next update came along.
Not long ago Netflix lifted the "only on certain devices" restriction and the app should work on any Android 2.x or 3.x device. What's even more interesting is that Netflix is actually recognizing devices running CyanogenMod ROM!
The latest update includes the following entries in their changelog:
Support for Android 3.x devices.
Available in the USA, Canada and Latin America.
Supports alternate audio and subtitles.
Fix incompatibility with CyanogenMod 7 ROM devices.
Way to go, Netflix!
Source: Netflix on the Android Market