Actually that isn't true regarding small ISP's. I'm in North Carolina in a rural area with a small ISP and they have peered up with netflix.
said by silbaco:
Why would large ISPs signup? They are supposed to peer directly with Netflix. And The ISPs are supposed to pay all the costs of doing so. Netflix won't charge them to peer "for now" but not guarantee about later. As a reward, ISPs can increase the traffic on their last mile. Verizon has no reason to do this.
As I have said before, my ISP can't do this even if they wanted to. They can't peer with Netflix. And they don't meet the requirements for getting the hardware appliance. Truly small ISPs are left in the cold and the big ones have no desire to connect. Not working out as well as Netflix had planned.