Earlier quoted context omitted.
They are huge companies so they can probably also provide transit service but that's not the case in this dispute. Netflix is willing to deliver the content anywhere Verizon/Comcast/etc require it either directly or by hiring a transit provider. So Netflix doesn't want transit service from these ISPs, it's already paying or building that by itself. The user is also already paying for the ISP network to work, so all s…
Should anyone be able to connect to an ISP for free? Why can't I host my website for free, just paying an upfront cost for a server, and get it hosted in an ISP's facility? Is there a relevant difference between that and what Netflix wanted?
Yes if they are willing to interconnect with that ISP at every exchange point. In practice that's expensive and what transit providers are for. Here's my proposal for a simple set of rules that would solve all these disputes:
https://news.ycombinator.com/item?id=7644339
>Why can't I host my website for free, just paying an upfront cost for a server, and get it hosted in an ISP's facility?
You should be able to do something similar to that to provide service for only that ISP's users. In fact Netflix does exactly that with some ISPs:
https://openconnect.itp.netflix.com/
This doesn't allow you to host your website for free because it only adds connectivity to the users of that specific ISP, not the whole internet. For that you have to buy transit.