[CraftThatBlock]

This is most likely a win-win senario for both parties.

Netflix can be more stable, and can save on bandwidth in their own DCs.

ISP can save a lot of egress bandwidth by having Netflix inside their infrastructure.

I would be surprised if any of the parties payed. It's a great strategy to have the ISPs on board with this

[rstupek]

Exactly. It's almost like a peering relationship between providers but in this instance netflix is not directly connected to the ISP so wouldn't be paying the ISP for bandwidth used by their customers accessing netflix. It definitely saves the ISP a lot of bandwidth cost