I've seen their boxes walking through Equinix facilities Dallas in Dallas and Chicago and it is a bit jarring how small some of the largest infrastructure can be.
It's worth noting that they have many smaller boxes at ISP colo locations as well not just the big regional DCs like Equinix.
I don't doubt there's a point at which it's cheaper to focus on reducing hardware and colocation costs, but for the vast majority engineers are the expensive thing.
Companies that think engineers are expensive will continue to buy tons of hardware and scale rather badly. If you are not actively pushing the ceiling you gonna fall out. You should work on problems cause, who knows, it seems like there might be some value.
Sometimes, for some organizations, spending 0.1 or 5 or 10 million dollars to solve a problem for now, right now is the smart and prudent choice.
It feels like a luxury that they can fit their entire content library in all encoded formats into a single server (even though it's a massive server).