Netflix already does a great job at recommending to its users TV shows, movies, and documentaries based on what you watched in the past and the ratings you give the content you watch. This week the streaming company launched a new way to discover content with a social spin. Subscribers can now link their Facebook account with Netflix to see what their friends are watching. Once the accounts are linked, Netflix users will notice a new “Watched by your friends” row in the streaming site’s main menu as well as a row called “Friends’ Favorites” that features content watched by friends that they have rated with four to five stars. Additionally, friends will be able to see what you watch and rate highly; but if you’ve got a guilty pleasure you don’t want to be shared you can easily click the “Don’t Share This” button in the player. Netflix notes that by default all this social sharing with Facebook friends happens on the Netflix side of things only. If you want your Facebook friends to see what you’re watching on Facebook, you have to dig into Your Account, Social Settings to flip the switch on; there you can also stop sharing altogether if you don’t want to take part in the new social recommendation engine.

Currently the Netflix/Facebook cross-sharing initiative is live in the U.S. Netflix says they will “continue to experiment and improve our social features over the coming months and years.” Click after the break to watch a brief demonstration of this at work across Netflix.com in the browser as well as on the PlayStation 3.

[Via Netflix]