Earlier quoted context omitted.
Beat me to it. I am sure a large part Netflix's success is how seamless its products are: there's minimal to no loading time and the video stream is virtually always smooth - including during times of action/high frame rate. Creating a video streaming platform is one thing, but creating a content delivery platform that is effectively as reliable as TV that is also cost efficient is no small task if you ask me...
Bullcrap. The tech is good enough (but not that much better beyond that level). >90% of the success comes from the content creation/licensing strategy/execution and marketing. I.e. non-tech. At this point it's a bit like arguing that Disney's great success in Bluray sales comes from their encoding/Bluray mastering expertise.
There is however something about that last 5-10% where moving a few bits around the right way gives you business advantage, over places like Disney.
That said, it does seem like some of this Netflix stuff is overbuilt, although I don't need to run tens of 1000's of ec2, so maybe it's worth it.