[jessaustin]

It's very hard to imagine a situation in which Amazon could lock new entrants out of the video encoding market. All you need to enter this market are a fast connection and a server farm, both of which you can get for yourself or rent from numerous IaaS providers.

Amazon might very well have a price advantage, but other parties that can offer better quality of service or better L10n or whatever will still attract customers. This is how markets are "supposed" to work.

[wmf]

It would be shady if Amazon set their prices for video encoding below the price of raw EC2, because then competitors would be in trouble. But they haven't done that.

[zikzikzik]

Why (on Earth) would it be shady?!