Netflix has long been open about the fact that their costs for content dwarf their IT costs, and encoding is a bursty CPU demand that perfectly fits cloud econo

Netflix has long been open about the fact that their costs for content dwarf their IT costs, and encoding is a bursty CPU demand that perfectly fits cloud economics. Note I'm not including their networking costs to get to the last mile, where they place a lot of their own boxes in ISP facilities pretty close to users, that would be about the same however they were doing core IT.