[corford]

I haven't been following this too closely (I don't live in the US) so I apologise if what I'm about to say it absolute rubbish but... my understanding is Netflix use Level3 for transit and the problem is Verizon refuse to upgrade their peering capacity with Level3.

[mullingitover]

Yes. There was a post on Level3's blog explaining that they have zero peering problems worldwide with the exception of a tiny group of ISPs in the US, and this group is coincidentally ranked dead last in customer satisfaction.