Amazon is starting to get into Netflix’s business of offering online streaming of select TV shows and movies. No big deal, right? Only a matter of time before Netflix would have some serious competition. But actually, Netflix does have a really big problem on it’s hands.
Paid Content is reporting that 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 SEC filing Netflix submitted.
The filing also 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.” Doesn’t sound good on Netflix’s end.