Basically certain ISPs refuse to increase connection capacity with backbone providers like level3. Instead they (Comcast) is trying to get Netflix to connect directly with them and charge them a premium in doing so.
They refuse to increase settlement free capacity. Level 3 can pay for the bit-miles beyond what they are carrying in return for the ISPs, or Netflix can do what every other company does and lease lines as needed.
Level 3 is never going to pay someone else for capacity, they are a tier 1. Their entire business model is "being big enough to never have to pay someone else for capacity".
Basically certain ISPs refuse to increase connection capacity with backbone providers like level3. Instead they (Comcast) is trying to get Netflix to connect directly with them and charge them a premium in doing so.