Verizon is changing that paradigm and is telling Netflix that if they want to make the connection wider to alleviate the congestion that Netflix will have to pay Verizon to do that.
Verizon isn't chaning anything. Netflix has a catalog of videos. Netflix wants to stream those videos. Netflix needs to PAY for an ISP. Netflix needs to PAY for a CDN. What's so difficult to understand? If I start my own Video catalog and streaming service, should I get a free services from Verizon? Am I going to get a Free ISP? A free CDN? NO.
Okay so now you say, well Netflix does pay for an ISP, Netflix does pay for a CDN. Not not to Verizon. Netflix pays company XYZ. Okay, well now company XYZ and Verizon now have to come up with an agreement. Go read about "Depeering"
http://en.wikipedia.org/wiki/Peering#Depeering
I see Level3 and XO had disagreements.
I see Level3 and Cogent had disagreements.
I see Sprint and Cogent had disagreements.
THIS IS NOTHING NEW!!!!!!!!!!!!!!!!
Level3 and Comcast had disagreements.
Cogent and Verizon have disagreements.
Once again Netflix can directly pay Verizon for some services including:
Dedicated network connection
http://www.verizonenterprise.com/products/networking/
http://www.terremark.com/services/it-infrastructure/
And just because NETFLIX Pays for one ISP doesn't mean they get a second one free. If Netflix want a direct connection to Verizon, they will pay. Just like I would, and just like you will. And just like I pay for Verizon FiOS, that doesn't get me a Free Bright House connection even if most of my traffic ends up on Bright House or originates from Bright House. I'd have to PAY Bright House for a direct connection.
Unless you are perhaps a Company such as Level3, Sprint, ATT, CenturyLink then you can say to Verizon:
We'll carry you're traffic, if you carry ours, but even then we'll still might have some disaagreements