netflix realized that content delivery is no longer a core part of the business when they stopped sending out DVDs in the mail.
instead, they've spent all their energies since on amassing the most lucrative content they can. this is why they started making their own original series and why disney has (implicitly) made the argument that they should be allowed to buy fox.
same as in the UPS & fedex example. the trucks are not core to the business. efficient logistics is.
It's still the only way to watch many movies & TV shows. There's just so much not available on Netflix/Prime/Hulu/Play, or not available on streaming at all.
Netflix's AWS purchases are commodity -- their customers would not suffer if they migrated away from AWS, either in product quality or price. Not so for Apple Maps and TomTom.
Generating their own content and being fully self-sufficient are two different things. It's not like Amazon can claim all of the Netflix Original Series as theirs. I think you're trying to die on a technical hill in opposition to a non-tech point. That's not the point the post is making.
They have a gentleman's agreement with Amazon–like Apple does with Samsung. It's mutually beneficial for both parties so there's no point antagonizing each other.
The reason why AWS isn't a threat is that AWS is a platform and doesn't have any screws to turn against Netflix - they can't raise prices to fight against Netflix because AWS hosts many other customers, and Netflix has a lot of choices when it comes to infrastructure.
On the other hand, Netflix's partnerships with movie studios is very one-sided one for them - there is no substitute for a blockbuster movie, so movie studios have a lot of leverage when talking to Netflix. Generally speaking, in this kind of relationship, the content providers will raise their prices to squeeze all profit out of the transaction with the customer. See also the difficulty with music streaming - the record industry has done the exact same thing already, the video industry is only a few years behind. Netflix saw the writing on the wall quite some time ago.
Along with the other arguments here, there's nothing absolutely unique (in terms of Netflix business/products) that AWS brings. The same service could be built on any cloud platform, or an in-house platform if they wanted. It would be a pain to migrate, sure, but it wouldn't fundamentally change their business.
If AWS kicked them off tomorrow, that would definitely be disruptive, but the chances of that happening are almost nil as Amazon would lose significant revenue, goodwill, and almost certainly face a lawsuit and maybe even an anti-trust investigation.
Prime video is their main competitor. It’s like UPS renting its trucks from fedEx.