> Because ISP is in business of selling internet access to consumer. ISP can sell different tiers of service to the consumer, but can't sell the product twice.

> Because ISP is in business of selling internet access to consumer. ISP can sell different tiers of service to the consumer, but can't sell the product twice. Netflix pays huge sum in their end. The network is not some amorphous blob. If a new streaming company called Notflix enters the market (with dedicated hardware), ISPs will have to build dedicated infrastructure that connects that competitor to the network. One of the obvious ways of gaining a foothold in the market is to go where other services have poor connectivity and setup shop there. Of course the ISP that sets up that infrastructure will take big cut for their work, as they should. With Net Neutrality in effect, the supply side of heavy use internet services becomes constrained, creating a barrier of entry for new competitors. It’s just plain old regulatory capture.