Netflix Isn't as Dependent on Amazon as You Think


For all the complaints about Netflix , the most legitimately worrisome may be its dependence on chief competitor .

By most accounts, the streaming sensation couldn't deliver as much video as it does without the help of Amazon Web Services. Trouble is, AWS has gone wobbly in recent months. A Christmas Eve outage took out Netflix, too, resulting in a lot less holiday cheer.

Whatever issues were at work then appear to have been solved. But Netflix also isn't taking chances. The company is slowly moving core pieces of infrastructure off Amazon, including infrastructure that controls the way users managers their "queue" of streamed shows and to-be-shipped DVDs. (Find the details in this admittedly technical blog post.)

Should investors expect Netflix and Amazon to part ways this year? What will it mean if they do? Tim Beyers of Motley Fool Rule Breakers and Motley Fool Supernova addresses these questions and more in the video below. Please watch, and then be sure to leave a comment to let us know what you think.

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Fool contributor Tim Beyers is a member of the Motley Fool Rule Breakers stock-picking team and the Motley Fool Supernova Odyssey I mission. He owned shares of, and had a long-term call options position in, Netflix at the time of publication. Check out Tim's web home and portfolio holdings or connect with him on Google+, Tumblr, or Twitter, where he goes by @milehighfool. You can also get his insights delivered directly to your RSS reader.The Motley Fool owns shares of Netflix and Motley Fool newsletter services have recommended buying shares of Netflix and The Motley Fool has a disclosure policy. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. Try any of our Foolish newsletter services free for 30 days.

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