The Eternal Cost Savings of Netflix’s Internal Spot Market

Netflix used their internal spot market to save 92% on video encoding costs. The story of how is told by Dave Hahn in his now annual A Day in the Life of a Netflix Engineer. Netflix first talked about their spot market in a pair of articles published in 2015: Creating Your Own EC2 Spot Market Part 1 and Part 2.
The idea is simple:
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Netflix runs out of three AWS regions and uses hundreds of thousands of EC2 instances; many are underutilized at various parts in the day.
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Video encoding is 70% of Netflix’s computing needs, running on 300,000 CPUs in over 1000 different autoscaling groups.
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So why not create a spot market to process video encoding?
As background, Dave explained the video encoding process:

