I guarantee you I pay my ISP every month primarily for downloading bandwidth, but for both ends at the end of the day. Netflix in turn pays their ISP. Those I

I guarantee you I pay my ISP every month primarily for downloading bandwidth, but for both ends at the end of the day. Netflix in turn pays their ISP. Those ISPs then have (potentially indirect) peering arrangements. On top of this, Netflix offers to install CDN nodes within other ISP's networks to reduce that ISP's traffic across exchanges (connections between ISPs). If an ISP doesn't see the value in those and wants to treat Netflix like any other traffic that makes it's way to AWS, they're welcome to do so; it's just very not in their favor. Them using that as a cudgel to try and extort money out of Netflix is absurd.