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It is actually rather simple:

* Netflix cannot make money if individual Internet users cannot connect to Netflix and stream their movies. Netflix brings in a lot of revenue from its customers, and even after the cost of its own Internet connection manages to turn a handsome profit.

* ISPs stand between Netflix and their users. Many ISPs, such as Comcast, are also involved in the business of selling subscriptions to TV channels (usually with plans that require people to pay for hundreds of channels they do not watch) -- a business that is dying because of Internet streaming. Since Netflix relies on ISPs to have customers at all, ISPs want to demand money from Netflix (as well as from their customers).

* Somewhere in there are the actual users of Netflix, who have no particular say in any of this. Most of those users would have been happier with BitTorrent, but are too terrified of lawsuits (and even if they did turn to torrents, certain ISPs -- i.e. Comcast -- have been known to deliberately interfere with their customers' traffic to thwart torrents).

If your reading of this is, "ISPs are greedy and want to double-dip," well, yeah, that's what is happening here.




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