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by mulmen 3202 days ago
I hear this line of thinking a lot but I don't really buy it.

You could just as easily say it's amazing that Amazon allows a competitor like Netflix to run on it's platform. The reality is that relationship is more complex than that.

2 comments

Netflix is going to exist regardless of whether Amazon lets them run on AWS.

Amazon letting them run on AWS is brilliant as they get a piece of Netflix's pie. So even if Netflix beats Amazon Prime, Amazon gets to dip into their pot via revenues from AWS. It's a great hedging of bets.

They're totally separate businesses. The people that treat Netflix like their customer aren't the same people making strategic decisions about Amazon Prime. Amazon is a ridiculously large company.
They are not totally separate when the P&L roll up on the same spreadsheet.
That depends on how the Amazon business is organized. It's possible that the P&L never join on the same spreadsheet.
The really amazing thing is that Nestle licensing production of Kit Kats to Hershey.
I think that deal was done before nestle bought kitkat. Kind of like spiderman movies being with sony instead of disney