Netflix Isn't as Dependent on Amazon as You Think

For all the complaints about Netflix (NASDAQ: NFLX  ) , the most legitimately worrisome may be its dependence on chief competitor Amazon.com (NASDAQ: AMZN  ) .

By most accounts, the streaming sensation couldn't deliver as much video as it does without the help of Amazon Web Services. Trouble is, AWS has gone wobbly in recent months. A Christmas Eve outage took out Netflix, too, resulting in a lot less holiday cheer.

Whatever issues were at work then appear to have been solved. But Netflix also isn't taking chances. The company is slowly moving core pieces of infrastructure off Amazon, including infrastructure that controls the way users managers their "queue" of streamed shows and to-be-shipped DVDs. (Find the details in this admittedly technical blog post.)

Should investors expect Netflix and Amazon to part ways this year? What will it mean if they do? Tim Beyers of Motley Fool Rule Breakers and Motley Fool Supernova addresses these questions and more in the video below. Please watch, and then be sure to leave a comment to let us know what you think.

Netflix's fortunes increasingly depend on success in international markets. Can the streaming sensation expand globally even as deep-pocketed competitors attack here at home? This is a must-know issue for investors, which is why we've released a brand-new premium report on Netflix. Inside, you'll learn about the key opportunities and risks facing the company, as well as reasons to buy or sell the stock. We're also offering a full year of updates as key news hits, so make sure to click here and claim a copy today.


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  • Report this Comment On March 05, 2013, at 12:54 AM, sliderw wrote:

    You've got it all wrong. Netflix's Cassandra clusters run on AWS!

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