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Netflix is stuck between a rock and a hard place. They don't control the content (the studios) and they don't control the distribution infrastructure (Amazon).
by ahi 15y ago
Netflix is stuck between a rock and a hard place. They don't control the content (the studios) and they don't control the distribution infrastructure (Amazon). They have a large subscriber base but it's just been shown that that might be fleeting. Netflix can't ride any network effect from their customer base. In short, their market position is indefensible. Their suppliers have the interest and ability to wring any profit margin out of them. If the suppliers demand too much, it's just an incentive for the consumers to buy direct from the source.
- brown9-2 15y agoThis seems to come up in every discussion of Netflix, but they do not use AWS for distributing streaming content.
- binarycrusader 15y agoReally? http://techblog.netflix.com/2011/04/lessons-netflix-learned-from-aws-outage.html http://techblog.netflix.com/2011/04/lessons-netflix-learned-...
- brown9-2 15y agoWould you mind pointing out the parts of that post that lead you to believe otherwise?
- mjschultz 15y agoThat doesn't say that Amazon is their CDN at all. They probably use AWS for pages and user-oriented stuff, but content delivery is done through Level 3 [1]. [1] http://www.reuters.com/article/2010/11/11/us-levelthree-idUSTRE6AA3IQ20101111 http://www.reuters.com/article/2010/11/11/us-levelthree-idUS...
- deleted 15y ago[deleted]