The expensive part of any hosted service is the bandwidth out - and at Netflix levels it must be stupid expensive. Even with the sort of deals they must have c

The expensive part of any hosted service is the bandwidth out - and at Netflix levels it must be stupid expensive. Even with the sort of deals they must have cut with Amazon, off loading to local caches is going to reduce someone's costs by a helkuva lot And yes. Amazon will happily squeeze them till the pips squeak, so their network costs will only go up. (Even if routers etc push the theoretical price downward)