Tuesday October 3 2017, playstation released firmware update 5.00 for the ps4. The update added new features such as communities based tournaments feature, improved parental control functions for families on psn, a family manager for parent and child PSN accounts, allowing you to follow anyone on playstation communities regardless of friends or not, playstation communities and messenger apps updated for smartphones, improved ability to control notifications, improved quick menu (designed to spend less time accessing home menu mid-game) Music player improvements, virtual surround sound in vr create groups for games, and stream up to 1080P 60FPS on twitch (PS4 PRO EXCLUSIVE FEATURE) and more. (see link below for full details)
There is no doubt that you are required to update to 5.00 to continue using online activities, but even doing so is not enough. You are slapped in the face with a updated Terms of Service that you must accept again to continue using psn. If you got curious like me and wondered why or even if you never read those things like I'm sure plenty of people don't, according to this source, it seems to target specifically the communities function. If accepted, you then have to reconfirm your old privacy permissions again along with new ones.
The revised terms of service and privacy settings mainly seem to do with followers. There is also a new option for off-line console availability. This is standard practice whenever the terms and services for PlayStation Network are updated although it is hard to notice the changes unless someone goes through the whole list and compares the text word by word.
Other than that, expect to see some game patch updates from popular online multiplayer games to add support for some of the community improved features like the tournament. Both Uncharted 4 A Thief's And and Uncharted Lost Legacy was recently updated for tournament support.
PS4 5.00 firmware update full list of features
PSN Revised Terms of Service 10-3-2017
Uncharted 4/Lost Legacy patch notes
SOURCE