I'd pay more for better bandwidth.
The problem isn't the bandwidth. Verizon FIOS has the bandwidth, and Netflix has the Bandwidth. The problem is not the bandwidth, the problem is you, willing to "pay more" to get Verizon and Netflix to install a cable between their switches at the COLO facility, which is something they should do. But if Verizon FIOS is anything like Comcast, they want to charge Netflix to bring Netflix to their own customers.
You are Netflix Customer
You are Verizon FIOS Customer
You are already paying for their service (both sides).
Actually, the problem is bandwidth. Remember how it turns out that most big ISPs are throttling Netflix traffic, and trying to get Netflix to pay them extra to pass their content? Yeah, well, Netflix has had to cave a bit. Comcast is getting paid by Netflix now, and thus the more bandwidth needed, the higher the cost.
But there are other challenges as well. Content providers charge more for media in multiple formats than they do for media in just one format. Pushing the data, even within Netflix, does require more drive space and internal bandwidth and capacity (or, in Netflix's case, a higher bill from Amazon since they are hosted in AWS). They need to build their systems out (i.e., pay for more cloud) to manage the bifurcation between content types as well.
And in other news, you get what you pay for. Extra features, upgraded content, etc. have never been free. They come at a premium. Everything else is just an explanation as to why that might be.