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    >As long as Zencoder runs on AWS, barring some magic encoding technology, it can never be cheaper than Amazon could theoretically go.
Nobody is forcing Zencoder to stay on AWS, if it no longer makes business sense to stay there then they need to move. If Zencoder believes that isn't feasible they need to find different value adds to make themselves more attractive than Amazon. This isn't anti-competitive at all.

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