> If Amazon 'jacks up it's prices', Netflix will simply move to another provider.

Like hell they will. The switching cost for Netflix, and really most heavy AWS users, would be extreme at this point. A good portion of the engineering org would pretty much have to dedicate themselves to the task of switching. That isn't to say other organizations can't be nimble between providers, but it would be hard for Netflix at this point.

AWS is already engaging in a commodity hardware market in order to run the DCs running. AWS fears becoming a pure extension of the same thing, and they have a decent bit of lock-in designed to their services for that reason.