Netflix is a worldwide global company that provides watching multimedia content via the Internet. As one of the first companies to provide services of this type, it was indispensable until competition appeared. However, in addition to all competitors, they proved to be the best choice, in addition to the huge content, it has the strongest weapon in the form of a 4K display and the use of HDR and Dolby Vision image display technology, which is fantastic. But with the advent of Amazon Web services, it became their biggest competitor. Despite that, it still has a larger library of content and apps for more platforms and devices than those supported by Amazon Prime. It also offers subtitles for more TV shows and movies from them.
Although these two giants are strong in their way and among the best, many were pleased by the news of their cooperation. But the question arises, are they still in a partnership or not?
What was the reason why Netflix started using Amazon Web Services?
The biggest difference between these two companies was in the size of their library and the type of movies you can find in it. Amazon cannot boast of long and varied films, but they have another advantage. In fact, they are concentrated on releasing the latest films for instant watching and this separates them from the competition. Netflix has a different story. They have a database of older movies and TV shows. When we say old, we mean those which are older than one year, except if we talk about their production. However, Netflix has a wider library of this content than Amazon.
Exactly this difference led to the collaboration of these two phenomena. An agreement has been concluded that everything that happens before the content is played (by pressing play) happens in the Amazon Web Service, which represents support, therefore this company is responsible for any failure. This we could consider as the main reason for the deal starting between these two.
Netflix’s need for a better and more secure database
We can consider that this is another tactic that Netflix has realized will remain among the best. To keep its contents safe, they have noticed that it could have used Amazon. Their cloud computing platform sounded like a great way to store movies and TV shows that Netflix has. So, they have seized the opportunity.
The move to AWS from its data centers was made because Netflix wanted a more reliable infrastructure. They wanted to remove all points of failure from their systems. This service offers highly reliable databases, storage, and data centers. The move to AWS allows Netflix to focus on its core business, which is its business value and leaves their partner to handle things that don’t directly contribute to the core business but need to be done.
So, Does Netflix still use Amazon Web Services?
It for sure does. Netflix operates in three regions thanks to this partnership: one in Northern Virginia, one in Portland, and one in Dublin. Thanks to the great service that they got from this cooperation, all disturbances during a certain distance will be removed in the shortest possible time. This is exactly what they’ve seen as a big adventage from this collaboration. Netflix is one of the largest customers of AWS and uses it for all its technology needs. Below is the link where you can see for yourself the quality of services offered by them: consoleconnect.com.
Why Amazon Web Services?
As they like to say AWS has everything you need. What Netflix has seen as a great advantage of collaborating with them is that they provide scalability and reliability. One other thing which is very important nowadays, when we live in the technological development age, is to be a partner with someone who constantly innovating and is not afraid of risk. Netflix saw that spirit in Amazon. So, according to the latest data, this corporation is still using AWS to live up to the expectations of millions of users.
A short look at Netflix before and after Amazon
Netflix is a subscription-based business model that makes a profit with three simple plans: Basic, Standard, and Premium, which provide access to series, movies and shows. But that’s not all, it’s also based on an on-demand concept. It is a media production company. It’s a brand that can mean several things in the minds of its subscribers. In fact, among over a hundred thousand subscribers, some tribes gather around the Netflix series that has become a symbol of our generation.
It took Netflix almost 8 years to migrate to Amazon Web Services. In early January 2016, they ended its relationship with AWS and shut down the last remaining bits of data center used by their streaming service. But with the increase in the number of their users, they decided to build their CDN (Context Exchange Network) Open Connect to store and transfer data. And the rest, of everything, is done by AWS. Primarily because Amazon Web Services is, in itself, a profitable business that existed long before Amazon started streaming video itself. These two main roles of our text together learned on the Amazon Web Services platform and Netflix’s demands gave AWS a direction it didn’t have before.
Of course, Netflix is legally protected in its business, and it is insignificant to order employees to work for the competition. Amazon is also legally protected, they do not steal from their customers which gains costumers loyalty.
From the cooperation of these two successful companies, we can draw conclusions and tips on how to run a successful business. The most important thing in the relationship between two partner companies is tolerance. Use the advantages of both companies in the best possible way, and there is no room for doubt, mistrust, and competition between them. This is exactly how Netflix and Amazon created a collaboration that is still profitable today. These two giants well assessed each other’s strengths and managed to exploit them. Thanks to their successful cooperation, we as viewers can enjoy countless good films and series filmed around the world.