Yes, I thought Netflix was completely cloud located. I realize now that I've been naive in my thoughts. It looks like they developed their own CDN, which makes me wonder what it was about the existing solutions they weren't happy with. Too slow? Too expensive? Not enough control?
Ah, I bet its the control one. The slides mentioned that they actually knew what the customer wanted to watch before the customer did. This allows them to push content down to a local node in advance of the customer requesting it. Wow, that's amazing and scary all at the same time.