Earlier quoted context omitted.
The deal was a paid-peering deal, which would likely drive down Netflix costs. We don't have any information on whether net neutrality was harmed. Hopefully netflix will provide information on this. Peering is a practice where two sides agree to maintain their side of the infrastructure and not charge for metered bandwidth. https://en.wikipedia.org/wiki/Peering
Why do you think it would drive down Netflix costs? In old world there were a dozen of "tier1" providers who would all peer with each other more or less settlement free. It is conceivable that one of these providers (I think it was Cogent in this case) was offering " low rates " to take Netflix traffic and deliver that traffic to Comcast over their settlement free peering. As traffic flow between Cogent and Comcast w…
When we do business with cloud providers or other third parties, we usually start with internet based access. When the relationship gets bigger or needs to serve a large portion of our base, we typically either peer with that provider (in the case of big cloud providers like Amazon, Microsoft, etc) or establish dedicated connectivity between our networks.
I think Comcast, Verizon, TWC, etc has a point here -- as a relationship grows with another party, you should have a more robust connection. Netflix hasn't wanted to do that -- it prefers to use a shitty ISP (Cogent) for cheap, and augment it by co-locating content on end-user ISP networks for free. Services like Netflix and Youtube stretch the net-neutrality argument, because they aren't good citizens.
That said, the end-user ISPs cannot be allowed to discriminate, which their monopoly power will almost certainly enable them to do.