Bloomberg News

Netflix Restores Online Video Service After Disruption

December 25, 2012

Netflix Restores Online Video After Christmas Eve Disruption

Netflix website. Photographer: Scott Eells/Bloomberg

Netflix Inc. (NFLX:US), the world’s biggest video-streaming service, said access to its movies and television shows was restored after a disruption caused by Amazon.com Inc. (AMZN:US)’s Web storage and computing system.

Many customers in the Americas weren’t able to access content online yesterday from around 3:30 p.m. New York time until late Christmas Eve, according to Joris Evers, a spokesman for Netflix. The blockage was caused by issues with Amazon Web Services, a business hosted on the Internet that’s separate from the online retail store, he said.

Subscription and on-demand services are becoming an important source of revenue for Netflix, which first offered DVD rentals via mail. Streaming services made up 70 percent of sales (NFLX:US) in the third quarter. Chief Executive Officer Reed Hastings has led a push to make Los Gatos, California-based Netflix available around the world, arguing people will pay for near-instant access to content online.

“We are happy that people opening gifts of Netflix subscriptions or Netflix-capable devices this Christmas morning can watch TV shows and movies and apologize for any inconvenience caused last night,” Evers wrote in e-mail. “We are investigating the cause and will do what we can to prevent re-occurrence.”

The world’s biggest online retailer, Amazon also rents data storage and computing resources to other businesses and organizations. Issues that affected its services were resolved, according to Tera Randall, a spokeswoman for Seattle-based Amazon.

“The service is now functioning correctly, and we’re heads down making sure customers are operating smoothly,” Randall wrote in an e-mail.

Streaming services in Europe weren’t affected, Netflix said.

To contact the reporter on this story: Reed Stevenson in San Francisco at rstevenson15@bloomberg.net

To contact the editor responsible for this story: Tom Giles at tgiles5@bloomberg.net


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Companies Mentioned

  • NFLX
    (Netflix Inc)
    • $357.09 USD
    • -4.61
    • -1.29%
  • AMZN
    (Amazon.com Inc)
    • $303.64 USD
    • 0.78
    • 0.26%
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