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We run our own infrastructure, sometimes with our own fincing (4), sometimes external (3). The cost is in tens of millions per year. When I used to compare to

We run our own infrastructure, sometimes with our own fincing (4), sometimes external (3). The cost is in tens of millions per year. When I used to compare to aws, only egress at list price costs as much as my whole infra hosting. All of it. I would be very interested to understand why netflix does not go 3/4 route. I would speculate that they get more return from putting money in optimising costs for creating original content, rather than cloud bill.

geocar 8mo ago
> I would be very interested to understand why netflix does not go 3/4 route. I would speculate that they get more return from putting money in optimising costs for creating original content, rather than cloud bill. I invest in Netflix, which means I'm giving them some fast cash to grow that business. I'm not giving them cash so that they can have cash. If they share a business plan that involves them having cash to do X, I wonder why they aren't just taking my cash to do X. They know this. That's why on the investors calls they don't talk about "optimising costs" unless they're in trouble. I understand self-hosting and self-building saves money in the long-long term, and so I do this in my own business, but I'm also not a public company constantly raising money. > When I used to compare to aws, only egress at list price costs as much as my whole infra hosting. All of it. I'm a mere 0,1% of your spend, and I get discounts. You would not be paying "list price". Netflix definitely would not be.
- varsketiz 8mo ago
  Of course netflix is optimising costs, otherwise it would not be a business, I just think they put much more effort elsewhere. They could be using other words, like "financial discipline" :) My point is that even if I get 20 times discount on egress its still nowhere close, since i have to buy everything else - compute, storage are more expensive, and even with 5-10x discounts from list price its not worth it. (Our cloud bills are in the millions as well, I am familiar with what discounts we can get)

geocar 8mo ago

> I would be very interested to understand why netflix does not go 3/4 route. I would speculate that they get more return from putting money in optimising costs for creating original content, rather than cloud bill. I invest in Netflix, which means I'm giving them some fast cash to grow that business. I'm not giving them cash so that they can have cash. If they share a business plan that involves them having cash to do X, I wonder why they aren't just taking my cash to do X. They know this. That's why on the investors calls they don't talk about "optimising costs" unless they're in trouble. I understand self-hosting and self-building saves money in the long-long term, and so I do this in my own business, but I'm also not a public company constantly raising money. > When I used to compare to aws, only egress at list price costs as much as my whole infra hosting. All of it. I'm a mere 0,1% of your spend, and I get discounts. You would not be paying "list price". Netflix definitely would not be.

varsketiz 8mo ago
Of course netflix is optimising costs, otherwise it would not be a business, I just think they put much more effort elsewhere. They could be using other words, like "financial discipline" :) My point is that even if I get 20 times discount on egress its still nowhere close, since i have to buy everything else - compute, storage are more expensive, and even with 5-10x discounts from list price its not worth it. (Our cloud bills are in the millions as well, I am familiar with what discounts we can get)