As Netflix Streaming declines, Netflix will save money with less AWS instances, but who cares?

Netflix will announce its Q3 results on Oct 24, and it is hard to say the numbers will look pretty.  Let alone what Q4 will look like.

Netflix to Announce Third-Quarter 2011 Financial Results


LOS GATOS, Calif., Oct. 4, 2011 /PRNewswire via COMTEX/ -- Netflix, Inc. NFLX -0.45% today announced it will post its third-quarter 2011 financial results and business outlook on its investor relations website at on Monday, October 24, 2011, at approximately 1:05 p.m. Pacific Time. At that time the company will issue a brief advisory release via newswire containing a link to the third-quarter 2011 financial results and letter to shareholders on its website.

Here is the one year stock performance.


One good thing about Netflix using AWS for its streaming instead of data centers is they can scale to demand which usually implies scaling up.  But with Amazon, Apple, and Google all focusing on video it is hard to imagine Netflix's growth will continue at its past pace, and they may decline.  Which means Netflix can just turn off AWS instances and save money.  But, who cares?  Can you image Netflix in a keynote presentation,  we have reduced our streaming content by 15% over the last year and we have saved 15% in our data center costs by turning off 15% of our AWS instances.

My kids use Netflix streaming constantly, but I also have Amazon Prime and have 2 Amazon Kindle Fires on order.  We'll see how the kids like streaming to their Kindle Fire and whether Netflix shows up on the Kindle Fire.  The Amazon Prime users are just about as loyal if not more than the Netflix user base was.