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Are they getting special EC2 negotiated rates? A two hour movie streamed to me costs 5 cents in computing power and bandwidth AND Amazon is still making a prof
by chopsueyar 16y ago
Are they getting special EC2 negotiated rates? A two hour movie streamed to me costs 5 cents in computing power and bandwidth AND Amazon is still making a profit?
[UPDATE]
http://aws.amazon.com/ec2/#pricing http://aws.amazon.com/ec2/#pricing
This says 8 cents per GB data transfer out.
- brown9-2 16y agoStreaming is not hosted on Amazon, it's CDN based. http://qcontokyo.com/pdf/adriancockroft.pdf http://qcontokyo.com/pdf/adriancockroft.pdf Slide 20ish
- chopsueyar 16y agoFrom your slide set, page 21 says Amazon receives a master tape from the studio then converts it to a high-quality format on s3, then stores in 50 different formats and pushes those to the CDN. The more times someone stream a specific movie, the more these "fixed" costs are recovered. According to the chart you referenced, the CDN is still a part of the Amazon ecosystem. Amazon Cloudfront is 3 cents a Gigabyte (once you're over 1000tb)
- kenjackson 16y agoReed Hastings has on several occassions said it is about a nickel per movie. “It costs us about a dollar, round-trip, to send DVDs by mail. It costs us less than a nickel to deliver by streaming.” Netflix now spends $600 million a year on the postal service [note to Jim Cramer: short USPS now!] and lots of hourly labor checking DVD quality. http://newsonomics.com/reed-hastings-six-lessons-for-the-newspaper-industry/ http://newsonomics.com/reed-hastings-six-lessons-for-the-new...