Yes, it does work. I originally purchased one at WalMart for $898 (wrong price on the shelf, but they honoured it). Anyway, I set it up, used it, and didn't like the picture. The 3D was awful, half resolution, but the Smart TV feature was cool.
$1200 is a bit much, considering I've seen it on sale at the big box stores as low as $999.
But yes, Netflix will work.