I dont understand the issue here, as far as i am aware Netflix installs media boxes at the data-centers of every ISP. And a video demand from netflix device is

I dont understand the issue here, as far as i am aware Netflix installs media boxes at the data-centers of every ISP. And a video demand from netflix device is directly resolved to these media boxes instead of resolving the content and downloading through Internet. So arent they already saving Internet bandwidth and rely on a Intranet like solution for distributing its contents?