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Yeah and that's why it amazes me that Netflix uses Amazon a straight competitor that uses the money it makes from Netflix to compete with Amazon prime.

mulmen 9y ago
I hear this line of thinking a lot but I don't really buy it. You could just as easily say it's amazing that Amazon allows a competitor like Netflix to run on it's platform. The reality is that relationship is more complex than that.
- kinkrtyavimoodh 9y ago
  Netflix is going to exist regardless of whether Amazon lets them run on AWS. Amazon letting them run on AWS is brilliant as they get a piece of Netflix's pie. So even if Netflix beats Amazon Prime, Amazon gets to dip into their pot via revenues from AWS. It's a great hedging of bets.
  - peanutgallery27 9y ago
    They're totally separate businesses. The people that treat Netflix like their customer aren't the same people making strategic decisions about Amazon Prime. Amazon is a ridiculously large company.
    - siculars 9y ago
      They are not totally separate when the P&L roll up on the same spreadsheet.
      - user5994461 9y ago
        That depends on how the Amazon business is organized. It's possible that the P&L never join on the same spreadsheet.
- ryacko 9y ago
  The really amazing thing is that Nestle licensing production of Kit Kats to Hershey.
  - dec0dedab0de 9y ago
    I think that deal was done before nestle bought kitkat. Kind of like spiderman movies being with sony instead of disney
amorphid 9y ago
What's the largest cloud provider that does NOT offer a Netflix-like streaming video service? Amazon/AWS, Microsoft/Azure, and Google Cloud all have offer premium streaming content of some type. IBM Cloud?
- dingo_bat 9y ago
  Microsoft has a Netflix-like service?
  - fragmede 9y ago
    I presume amorphid is referring to the tech stack supported in Azure and not a consumer facing service. https://azure.microsoft.com/en-us/services/media-services/ https://azure.microsoft.com/en-us/services/media-services/ (MSNBC would be a video streaming service that bears Microsoft's initials, but they sold off their stake in 2012)
  - amorphid 9y ago
    They have premium content which can be streamed. Perhaps not Netflix-like in there business model. https://www.microsoft.com/en-us/store/movies-and-tv https://www.microsoft.com/en-us/store/movies-and-tv
kabes 9y ago
But this happens all the time. Like Apple buying iPhone components from Samsung. The best deal is the best deal
xbmcuser 9y ago
My point was that Netflix uses AWS services exclusively instead of dividing it between multiple services at least though now days they probably get really deep discounts from Amazon to stay on AWS because of competition and it probably is lot cheaper for them then building and maintaining it's their own servers.
- lstyls 9y ago
  Netflix built their own CDN ages ago. Given that their core business logic is basically static content delivery whats left to AWS probably is a lot less than commenters in this thread seem to think.
StreamBright 9y ago
Netflix probably in a better position to do the math than random people on HN. I think they have done their homework and decided that it is overall cheaper to keep ___some___ of their infra on AWS.
- dna_polymerase 9y ago
  Yes! Thank you! Every time some piece like this is posted 'experts' arise here and know everything better. Like there is a bunch of idiots working at Netflix who are happily burning money...
- late2part 9y ago
  Yes, some. But how much, really? https://www.rapidtvnews.com/2016031942170/netflix-moves-all-global-traffic-to-open-connect-cdn.html#axzz4suG8zjY0 https://www.rapidtvnews.com/2016031942170/netflix-moves-all-... http://www.aberdeenessentials.com/techpro-essentials/how-the-netflix-cdn-demonstrates-the-importance-of-content-delivery/ http://www.aberdeenessentials.com/techpro-essentials/how-the... https://gizmodo.com/this-box-can-hold-an-entire-netflix-1592590450 https://gizmodo.com/this-box-can-hold-an-entire-netflix-1592...
notyourday 9y ago
CAF
user5994461 9y ago
Migrations and self hosted infrastructure don't do themselves. Netflix can get quite a lot of stuff done on AWS for the $200k+ dollars it would take to hire one single employee.

mulmen 9y ago

I hear this line of thinking a lot but I don't really buy it. You could just as easily say it's amazing that Amazon allows a competitor like Netflix to run on it's platform. The reality is that relationship is more complex than that.

kinkrtyavimoodh 9y ago
Netflix is going to exist regardless of whether Amazon lets them run on AWS. Amazon letting them run on AWS is brilliant as they get a piece of Netflix's pie. So even if Netflix beats Amazon Prime, Amazon gets to dip into their pot via revenues from AWS. It's a great hedging of bets.
- peanutgallery27 9y ago
  They're totally separate businesses. The people that treat Netflix like their customer aren't the same people making strategic decisions about Amazon Prime. Amazon is a ridiculously large company.
  - siculars 9y ago
    They are not totally separate when the P&L roll up on the same spreadsheet.
    - user5994461 9y ago
      That depends on how the Amazon business is organized. It's possible that the P&L never join on the same spreadsheet.
ryacko 9y ago
The really amazing thing is that Nestle licensing production of Kit Kats to Hershey.
- dec0dedab0de 9y ago
  I think that deal was done before nestle bought kitkat. Kind of like spiderman movies being with sony instead of disney

amorphid 9y ago

What's the largest cloud provider that does NOT offer a Netflix-like streaming video service? Amazon/AWS, Microsoft/Azure, and Google Cloud all have offer premium streaming content of some type. IBM Cloud?

dingo_bat 9y ago
Microsoft has a Netflix-like service?
- fragmede 9y ago
  I presume amorphid is referring to the tech stack supported in Azure and not a consumer facing service. https://azure.microsoft.com/en-us/services/media-services/ https://azure.microsoft.com/en-us/services/media-services/ (MSNBC would be a video streaming service that bears Microsoft's initials, but they sold off their stake in 2012)
- amorphid 9y ago
  They have premium content which can be streamed. Perhaps not Netflix-like in there business model. https://www.microsoft.com/en-us/store/movies-and-tv https://www.microsoft.com/en-us/store/movies-and-tv

kabes 9y ago

But this happens all the time. Like Apple buying iPhone components from Samsung. The best deal is the best deal

xbmcuser 9y ago

My point was that Netflix uses AWS services exclusively instead of dividing it between multiple services at least though now days they probably get really deep discounts from Amazon to stay on AWS because of competition and it probably is lot cheaper for them then building and maintaining it's their own servers.

lstyls 9y ago
Netflix built their own CDN ages ago. Given that their core business logic is basically static content delivery whats left to AWS probably is a lot less than commenters in this thread seem to think.

StreamBright 9y ago

Netflix probably in a better position to do the math than random people on HN. I think they have done their homework and decided that it is overall cheaper to keep ___some___ of their infra on AWS.

dna_polymerase 9y ago
Yes! Thank you! Every time some piece like this is posted 'experts' arise here and know everything better. Like there is a bunch of idiots working at Netflix who are happily burning money...
late2part 9y ago
Yes, some. But how much, really? https://www.rapidtvnews.com/2016031942170/netflix-moves-all-global-traffic-to-open-connect-cdn.html#axzz4suG8zjY0 https://www.rapidtvnews.com/2016031942170/netflix-moves-all-... http://www.aberdeenessentials.com/techpro-essentials/how-the-netflix-cdn-demonstrates-the-importance-of-content-delivery/ http://www.aberdeenessentials.com/techpro-essentials/how-the... https://gizmodo.com/this-box-can-hold-an-entire-netflix-1592590450 https://gizmodo.com/this-box-can-hold-an-entire-netflix-1592...

notyourday 9y ago

CAF

user5994461 9y ago

Migrations and self hosted infrastructure don't do themselves. Netflix can get quite a lot of stuff done on AWS for the $200k+ dollars it would take to hire one single employee.