I'm not a Netflix staff member but I work in the networking realm and can answer some of these questions (also gives me the chance to say something wrong where someone with the real answer can step in :)

1. Netflix does use AWS but it's far more economical for them to embed content caches/servers within ISP networks so that it relies solely on the ISPs network. All major CDN-like providers (Apple with their Edge Cache, Google with their GCC) offer embedded caches which tend to make a lot of sense at sufficient ISP scale (# of users). It's a misconception or just journalistic misunderstanding that everything Netflix runs is from AWS. Content delivery is the large majority of Netflix's outbound traffic. It also removes the reliance of Netflix to run in inordinately large backbone to serve content.