Is Verizon service even available wherever the main netflix datacenter(s) is/are? If it is, wouldn't they just need to offer a better monthly connection rate, or better speed for the same rate, and let it be a "normal" competitive service for business?
Netflix and verizon do indeed have pops in the same facilities. There was a recent post by a verizon suggested that all the congestion between netflix and them was due to a 100% saturated interconnect in LA to L3. That of course means that *all* verizon traffic going through that node is badly impacted. Verizon and netflix are currently working out a deal to peer directly. This will likely entail several hundred 10g ethernet interconnects spread out across numerous locations. But until then verizon is happily screwing over their customers just for a leg up in negotiations with netflix.
Thus mathematics may be defined as the subject in which we never know what we are talking about, nor whether what we are saying is true. -- Bertrand Russell