4 ms·
Do you seriously think this didn't occur to the Netflix management prior to the switchover? A couple points: • Netflix pulling out amid internet drama of anti
by wheels 16y ago
Do you seriously think this didn't occur to the Netflix management prior to the switchover?
A couple points:
• Netflix pulling out amid internet drama of anti-competitive behavior would hurt Amazon much worse than it would hurt Netflix. Netflix can find someone to throw their money at to host their infrastructure, but they could deal a pretty hefty blow to Amazon's emerging revenue stream in infrastructure by scaring lots of potential customers away.
• There have been talks about a some-day Amazon / Netflix merger for a bazillion years. This could be a little technical lubricant to such a deal.
- bdb 16y agoNetflix is merely a peripherally-involved third party in the recent Comcast/Level(3) drama. But I guess being a big enough AWS customer might help them get problems fixed when they arise. I sincerely doubt that Netflix would be acquired by Amazon without a serious downward adjustment to their market cap. Besides, Amazon hosting the entire Netflix infrastructure would present a dramatic disadvantage to any other potential acquirer; in general, M&A yields the best returns for shareholders of the acquired company when there is a bidding war taking place.