Generally speaking, though, the burden of 3rd party app functionality rests with the app developer. Unless Netflix is specifically contracting Google to do their application, it's their responsibility to get it back up and running.
That said, though, since not all users are affected, it's probably not just an issue of simple compatibility between the latest versions of Netflix and Android, but complicated by an outside factor. Did the issue arise immediately after installing/updating any other apps? If so, you might try temporarily uninstalling them and rebooting your N7 to see if that was the cause. Are you running extremely low on available memory? That could be causing problems as well.