Ah, but how does the traffic get from Netflix's ISP to your ISP?
Hint: The actual internet is more than the oft-imagined cloud on network diagrams. Network operators agree to interconnect with each other, for mutual benefit, and if such an agreement is unbalanced (because one party is handing off more traffic than the amount they're willing or able to deliver) one of the network operators will end up paying the other.
A simplified version, wherein we're both network operators, Case 1, equal traffic flow:
Shakrai: "I have 3 terabit/s of peak hour traffic that you can deliver for me."
suutar: "Perfect. I also have 3 terabit/s of peak hour traffic that I can't deliver but you can. Let's connect our networks."
Shakrai: "Sounds good."
Case 2, unbalanced traffic flow:
Shakrai: "I have 10 terabit/s of peak hour traffic that you can deliver for me."
suutar: "I only have 3 terabit/s to hand off to you. We're going to bill you for the difference, okay?"
That has been the paradigm on the internet for a very long time, because it's recognized that it costs money to get a packet from Point A to Point B. Networks pay for connections to other networks unless they can absorb a roughly equal amount of traffic. You can't dump terabits of traffic into someone's network without offering them something in return.
Netflix wants to blow up this longstanding model because bearing the full cost of delivering their packets eats into their bottom line. It doesn't kill their business model, the fact that they're profitable attests to that, but it sure seems to keep Mr. Hastings up late at night. If you actually drill down into this issue you'll find that they've hijacked the concept of network neutrality. There a ton of arguments to be made in favor of network neutrality but Netflix is not one of them.