Customers may not know which ISPs are throttling Netflix. Netflix is stuck in a bind because customers have few if any ISPs to choose from. In that situation,

Customers may not know which ISPs are throttling Netflix. Netflix is stuck in a bind because customers have few if any ISPs to choose from. In that situation, if Netflix passes on ISP fees for users of that ISP, then the ISPs video offerings get more competitive. ISPs then have incentive to increase the fees even more. The outcome is that customers lose a competitor to good video services in Netflix. On the other hand, if Netflix hides the ISP fees from their customers and averages it out to all their prices, then that essentially adds onto the costs in general and everybody's Netflix costs go up. Currently, customers have no direct choice that they can act on which correlates to cost and thus have no feedback mechanism to correct the market to actually make it competitive.