This is a two way street. Verizon customers are demanding content from Netflix. Peering agreements are based on a mutual benefit, in that both sides will use relatively the same amount of bandwidth. Now the bandwidth usage is lopsided towards Netflix, and Verizon is stating this is no longer a mutually beneficial relationship.
It's not valid, as has been discussed about a dozen times in the thread. Peering arrangements to consumer ISPs are not symmetrical, and never have been.
That's what peering is. Both parties agree to connect their networks for mutual benefit of each other. If one side is lopsided on traffic usage, this really is no longer a mutually beneficial relationship. See Wikipedia for more definition information.
