"As much as 70% of Internet-distributed data is now video, 50% of it from Netflix. This new video industry — growing exponentially and transforming the nature of entertainment — is getting a free ride on the cable and telco investment in broadband. Arguably, this is unsustainable free distribution, overtaxing networks and slowing the Internet for everyone."
I just gag on "free ride". 11M Netflix subscribers pay Verizon/Comcast/etc $50 * 12 * 11m = $6.6 billion a year for this "free" ride. Margins on Internet services at Verizon/Comcast are believe to be in the 90% profit range.
I can help the FCC solve this. Require that ISPs provide at least one settlement free peering point for each customer in their network with no peering point providing access to less that 10,000 customers. 10K because after all they are ISPs and they should do something for that $50/mth (i'm sure Verizon would immediately declare this settlement free peering point to be the customer's wifi node without this rule).