phrelin
02-21-11, 11:53 AM
This article (http://paidcontent.org/article/419-what-worries-netflix-about-amazon-isnt-just-competition/) was surprising to me: Amazon pops up in two different areas under the “risk factor” section of the [Netflix] 10-K, and not just as potential competition. It turns out Netflix outsources a huge portion of its operations to a division of Amazon called Amazon Web Services. AWS became a Netflix vendor in 2009, and has taken on an increasingly larger role in managing the “majority of our computing,” according to the 10-K.
As the filing states, “Given this, along with the fact that we cannot easily switch our AWS operations to another cloud provider, any disruption of or interference with our use of AWS would impact our operations and our business would be adversely impacted.”
Talk about the fox guarding the henhouse....What's surprising about it is not the "risk" of Amazon manipulating the Netflix stream which has way too many legal implications, but rather that even if you as a retail customer use Netflix and don't use Amazon, Amazon gets some of your money perhaps allowing it to compete against Netflix more effectively. Talk about win-win....
As the filing states, “Given this, along with the fact that we cannot easily switch our AWS operations to another cloud provider, any disruption of or interference with our use of AWS would impact our operations and our business would be adversely impacted.”
Talk about the fox guarding the henhouse....What's surprising about it is not the "risk" of Amazon manipulating the Netflix stream which has way too many legal implications, but rather that even if you as a retail customer use Netflix and don't use Amazon, Amazon gets some of your money perhaps allowing it to compete against Netflix more effectively. Talk about win-win....