I prefer YouTube’s vertically integrated technology stack as Netflix relies on a competitor as you highlighted (AWS/Prime) for service delivery. I suppose NFLX really did not have much choice as it relates to cloud/server infrastructure as Netflix was not in a position to build its own. YouTube and Netflix will compete for live sports rights. Perhaps down the road YouTube will be spun out and at that juncture it would consider creating premium content. It is fun to speculate.
As to who wields the power between AWS and NFLX, good question. I don’t know how much pain would be involved were Netflix to switch to Azure or Google Cloud Platform. I don’t foresee a switch as I don’t believe there is much to be gained from switching. There is stuff out there that suggests that Netflix pays AWS $1 billion per year. AWS generated $91 Billion of Revenue in 2023, it certainly doesn’t need NFLX from a Revenue standpoint, but wouldn’t want the headline risk of losing them either. I’d rather own the AWS business than Netflix.
I prefer YouTube’s vertically integrated technology stack as Netflix relies on a competitor as you highlighted (AWS/Prime) for service delivery. I suppose NFLX really did not have much choice as it relates to cloud/server infrastructure as Netflix was not in a position to build its own. YouTube and Netflix will compete for live sports rights. Perhaps down the road YouTube will be spun out and at that juncture it would consider creating premium content. It is fun to speculate.
As to who wields the power between AWS and NFLX, good question. I don’t know how much pain would be involved were Netflix to switch to Azure or Google Cloud Platform. I don’t foresee a switch as I don’t believe there is much to be gained from switching. There is stuff out there that suggests that Netflix pays AWS $1 billion per year. AWS generated $91 Billion of Revenue in 2023, it certainly doesn’t need NFLX from a Revenue standpoint, but wouldn’t want the headline risk of losing them either. I’d rather own the AWS business than Netflix.