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That's not the problem. The problem is if Netflix is paying Amazon, then their cost is infrastructure + profit, whereas Amazon only has infrastructure costs.

Fundamentally it means Amazon can be more competitive, and Netflix are hoping they can stay ahead on the user experience curve.

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Netflix would have to be pretty good at negotiating content licensing to have their costs dominated by bit shovelling.

I'm betting on it. Not sure how big you think the AWS bills are. :)

Edit: See jedberg's comment below for where the real money goes.

I'd love to see a ball park bill for netflix :)

Compared to the licensing/production costs hosting the front ends is peanuts. At least that's what Adrian Cockcroft used to say before he left.

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