I understand all of this, maybe I'm just dumbing down the responses unintentionally.
NetFlix if one believes the reports is becoming the single biggest source of traffic by volume:
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www.nbcnews.com/technolo ··· h-119517The issue is there are NO single company that can provided the bandwidth NetFlix is consuming, there now with amazon but even that will run out of steam .. so that why there looking to make direct connections to major cable and telco's
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www.businessinsider.com/ ··· -2012-11The entire model of peering is somewhat in question, it just happens to be Netflix that has the traffic to push the issue because the number of effected subscribers and the raw data required to be transited.
Another issue, is the actual networks ( internet ), are mostly owned by cable or telco's and they have no interest in having to support Netflix as its a direct competitor