Do they not offer any kind of bargains for such a huge purchase/company ? I'd think Amazon would work with Netflix to offer at least somewhat competitive prices. I am just talking out of my backside here, but it seems to me like they probably are getting a better deal then the average joe running an EC2 instance.
OK, that's probably true. Even on the EC2 pricing page, if you go over 1PB/mo the price is "contact us" https://aws.amazon.com/ec2/pricing/ so I'm sure they're getting a better price than the "official" quote.