Something else I've seen says that Netflix offered Barlow and Bear a license for the Kennedy Center performance (they knew about a charity performance in London and the record, but let them go as one-shots) and they turned Netflix down. Stupid on their part, because they can't claim fair use because it's a faithful adaptation of the material, not a parody or satire (I'm thinking of a parody of "Love Actually" that ran in Chicago last year that had characters named "Hugh Grant" and "Laura Linney" and referred to Rowan Atkinson's character in the film as "Mr. Bean"--that's fair use).
Where social media seems to be in a tizzy is because they're afraid that the copyright holders are going to go after fan fiction next, which has fallen under fair use because no one was expecting to make money off of it (like before E.L. James changed her "Twilight" fanfic into "50 Shades of Gray"). And since social media is overreaction, they're blaming it all on "that bitch Shonda." Why don't they just throw in the N-word while they're at it?