Amazon Elastic Transcoder
It's quite an interesting business decision to jump into this market.Take Zencoder for example (which is one of my favourite players in this field)... if you are to compare the prices with say Zencoder [1]  AWS is much more cost effective (by several factors). Even if you were operating at scale and spending $2000 per month with Zencoder, you would only get 50,000minutes  worth of HD Video. (You pay 2 minutes worth of credits for HD video on Zencoder).If you spend $2000 with AWS, you would be getting 33% more value. (Remember, this is operating at scale. The savings can be even larger)... and this is really the best case scenario for Zencoder.If you are "just getting started", the savings are immediate. On Zencoder it's $0.10 for HD video, compared to $0.03 on AWS.I'd be really worried and slightly confused by Amazon took this step? There are several video encoding companies that operate on AWS already, and they all just got sandbagged.    [1] : http://zencoder.com/en/pricing