Looking at Amazon's Q1 2016 Financial Results [0], page 8, we see that net sales of non-AWS amounts to ~$26B, and AWS is ~$2.5B. From the Segment Highlights section (same page), AWS sales is 9% of total sales.

AWS beats non-AWS income only because there were losses in international; ignoring international, it's a $16m difference.

Looking at page 14, Media sales in North America and International sum to $5.6B. Media sales alone is double AWS's sales of $2.5B (page 13). Profit margins are way higher for AWS, so there's still a lot of room for a larger income difference between the two segments.

Based on this, someone doing media streaming as their primary business needs to be aware of who they are in bed with infrastructure-wise, but I agree that it doesn't mean that AWS isn't worth using just because Amazon is in the same market/area. Media sales are a big portion of Amazon's non-AWS sales, and being digital are most likely fewer headaches than physical goods; but not so big of a portion that one needs to worry about Amazon being the 800lb gorilla that would need to be contended with. It's more likely that Amazon is a threat to Netflix on licensing deals and content offerings (IMO, Netflix is slightly stronger, but neither are great, in content offering).

Is Amazon going to pull the rug out from under Netflix? Not if they want anti-trust attention. Is Amazon going to disallow the Netflix app to run on their devices? I suspect no, since they seem to want to create a platform rather than a walled garden when it comes to devices and media. Is Amazon going to undermine the trust in AWS by using AWS customer's data, or metadata about their customers, for their own gain? Probably not. If I'm going to put money on who's going to do "the right thing", for businesses and tech as a whole, it's going to be on the likes of Amazon rather than, say, Oracle.

Looking closer at (just) this (document), the growth numbers are such that it could go either way as to which revenue stream will eventually be the major contributor to Amazon revenue streams. That's a significant reduction in losses (-60%) over Q1 2015, so International turning around over the next year or so could keep AWS and non-AWS income neck and neck.

[0] http://phx.corporate-ir.net/External.File?item=UGFyZW50SUQ9N...