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The whole system runs on AWS but most videos are watched in the last mile from edge caching hosted closer to the viewer.

Bandwidth providers should be happy companies want to edge cache and take strain off the larger network and provide better customer experiences.

no. Netflix uses aws for serving html, and other relatively low bandwidth content. But media bits are not served from aws.

From what I can tell, edge caching occurs on AWS as well.

http://techblog.netflix.com/2013/06/announcing-zuul-edge-ser...

http://techblog.netflix.com/2012/01/ephemeral-volatile-cachi...

I work at netflix.

zuul is used by the netflix API. It's not a cache. It's a request router.

EVCache is used internally for ephemeral systems data - things that would frequently go into mysql or cassandra but don't really need crash persistence.