(3) I actually don't know off the top of my head. (1) would certainly be doable, but it's something Verizon wants to avoid because in most markets they're in a

(3) I actually don't know off the top of my head. (1) would certainly be doable, but it's something Verizon wants to avoid because in most markets they're in a duopoly (often with Xfinity, sometimes with a local provider). Much like two gas stations across the street from each other often having identical prices, Verizon doesn't want to be perceived as costing more for the same service as the alternative. For (2), Netflix could almost certainly do that, but I assume they'd prefer to not pass any cost onto consumers (because, really, they're making a stand against this business practice by Verizon being fair play at all). Among other reasons, if it's seen that Netflix is willing to pay a "ransom," other carriers may try to increase their contracted costs.