Netflix isn't sending their data to customers unsolicited.
Customers are requesting that data, through a pipe which they have already paid for.
It is unfair for Verizon, or any other ISP, to ask to be paid twice for the same bits. What bits I am asking for, as a customer, shouldn't make a damn bit of difference.
To my understanding, the upstream ends are linked largely thanks to peering, which is based on mutual benefit. At the upstream level, nobody charges other providers because everybody is interacting with everybody- sort of like, "I bought this round, but I know you'll be buying the next" so you don't worry about balancing the books.
Then Netflix comes along, chews up 35% of internet traffic, and basically takes a disproportionate piece of the pie. If I've got everything in my head right, this is against the spirit of how peering is supposed to work, and so it doesn't surprise me if spats start to develop upstream.
If Verizon is unhappy because they have to develop their last-mile network to meet promised speeds, that's Verizon's problem. But if Verizon is unhappy because the upstream is becoming distorted and they are becoming beholden to just one peer (Netflix) instead of an environment of free, balanced exchange- maybe that's not Verizon's problem.
The only reason we're having this discussion is because it's "one peer".
A thought experiment: Let's pretend it's not Netflix for a moment. Let's pretend there's a bunch of competing streaming media services which happen to take up, combined, the same amount of bandwidth that Netflix does.
In this case, Verizon would still have the same problem (if you buy that they have a problem at all, which I personally do not), except they couldn't play at being mafiosos, holding one in particular to what would be a protection racket in any other context since the load is the same amount, just distributed among many much smaller players.
What would they do in this case?
The fact that it's one large company gives them the ease of threate^H^H^H^H^H^H leveragi^H^H^H^H^H^H^H^H negotiating with one entity instead of upgrading their damn network like they're expected to do.
Customers are requesting that data, through a pipe which they have already paid for.
It is unfair for Verizon, or any other ISP, to ask to be paid twice for the same bits. What bits I am asking for, as a customer, shouldn't make a damn bit of difference.