World’s biggest video-streaming service provider, Netflix Inc. (NASDAQ: NFLX) said on Monday that it has restored its services after a technical glitch in Amazon.com Inc.’s (NASDAQ: AMZN) web storage and computing system blocked many of its customers from accessing movies and television shows.
According to Company’s spokesman, Joris Evers, many Netflix’s subscribers complained of not being able to watch online content from around Monday 3.30 p.m. EST until the Christmas Eve. Evers added that the outage impacted company’s subscribers across of the United States, Canada and Latin America. However, Netflix’s streaming services in Europe were not impacted.
The snarl-up was caused due to certain issues with Amazon Web Services. Amazon.com, world’s largest online e-commerce platform, also rents data storage (cloud computing) and computing resources to organizations and other businesses.
Netflix, which started as a DVD rental company delivering orders through mails, has changed its business model with bulk of the revenue now generated from subscription and on-demand streaming services. In the fiscal third quarter, streaming services made up 70 percent of the total sales. In the U.S. market, Netflix’s subscribers base for internet streaming service rose to 25.2 million in the third quarter—a more than 20% growth from year earlier period, helping the company to offset dwindling DVD-by mail business.
Moreover, the company aggressively expanded its video-streaming business in Europe, especially in the Nordic region, in the same period.
In an e-mail statement, Evers said, “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. We are investigating the cause and will do what we can to prevent re-occurrence.”
Amazon.com also confirmed that technical glitch which hindered its services were resolved. In emailed statement, Amazon.com’s spokeswoman, Tera Randall, said, “The service is now functioning correctly, and we’re heads-down making sure customers are operating smoothly.”
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