Really ISPs have a choice between peering with Netflix and reaching Netflix over transit. Since most broadband ISPs would have to buy transit, peering with Netflix (at any price, even free) is a better deal.
> Really ISPs have a choice between peering with Netflix and reaching Netflix over transit. Since most broadband ISPs would have to buy transit, peering with Netflix (at any price, even free) is a better deal.
They have a third choice, which is "not reach Netflix at all". Which, for ISPs that are also selling streaming video services (e.g., pretty much all of the big ISPs, which tend also to be digital cable with "on demand" video streaming providers) with which Netflix competes, is a pretty attractive option.
They have a third choice, which is "not reach Netflix at all". Which, for ISPs that are also selling streaming video services (e.g., pretty much all of the big ISPs, which tend also to be digital cable with "on demand" video streaming providers) with which Netflix competes, is a pretty attractive option.