Does it really though? The netflix stats show that at most it's a 2x saving: http://3.bp.blogspot.com/-72J2TkcP4j0/TxcdvDk58VI/AAAAAAAABA...

And EC2 is more than 2x as expensive as dedicated...

Don't get me wrong, EC2 has advantages, but it's not cost (unless Netflix is paying much less than the public prices, which is possible).