Netflix uses cloud computing to address challenges in scaling its infrastructure to support unpredictable growth. It has transitioned its website to be nearly 100% cloud-based using Amazon Web Services (AWS) to gain the scale, availability and agility needed. AWS provides tools and features like auto-scaling that allow Netflix to easily expand capacity as its subscriber base grows by over 50% per year. By leveraging AWS' mature cloud platform, Netflix can focus on its core video business rather than managing data centers.