I don't get it. How do the sources not pay? Don't they pay for hosting and bandwidth? Aren't edge servers an implementation detail that's inherent in providing bandwidth?
Me neither. I don't consider my bro a reliable narrator. What I've gleaned is the transit fees were regulated for a while.
It seems to me that Generic ISP Inc would meter all the Netflix traffic and then send them a bill. And if Netflix wants to ensure their end users are getting whatever quantity and quality of bandwidth, the two parties will negotiate.