As far as I'm aware, not all ISPs get that deal - the ISPs need to pay Netflix for it.
There are four invariants as I see it:
1) Netflix is using a significant amount of a limited resource (bandwidth)
2) If Netflix doesn't work, consumers blame their ISP, not Netflix
3) The consumer is going to pay for this bandwidth, whether via ISP or Netflix
4) Consumers don't like caps or understand special packages that differentiate between packets routed one way or another
If Netflix doesn't pay for this bandwidth, then ISPs need to pay for it - and consumers will pay more to their ISPs to cover these costs. That means that consumers that don't use Netflix will be subsidizing consumers who do use Netflix.
IMO ISPs should charge Netflix so that Netflix can charge higher prices to users who are using more bandwidth via Netflix. That better reflects the link between who's using a limited resource and who's paying for it. Unfortunately, because of point (2) above, Netflix has quite a strong bargaining position.
There are four invariants as I see it:
1) Netflix is using a significant amount of a limited resource (bandwidth) 2) If Netflix doesn't work, consumers blame their ISP, not Netflix 3) The consumer is going to pay for this bandwidth, whether via ISP or Netflix 4) Consumers don't like caps or understand special packages that differentiate between packets routed one way or another
If Netflix doesn't pay for this bandwidth, then ISPs need to pay for it - and consumers will pay more to their ISPs to cover these costs. That means that consumers that don't use Netflix will be subsidizing consumers who do use Netflix.
IMO ISPs should charge Netflix so that Netflix can charge higher prices to users who are using more bandwidth via Netflix. That better reflects the link between who's using a limited resource and who's paying for it. Unfortunately, because of point (2) above, Netflix has quite a strong bargaining position.