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A comment on Verizon Throttles Netflix Subscribers in Test It Doesn't Inform Customers About. Parent comment

Re:Verizon Throttles Netflix Subscribers in Test It Doesn't ... by jdmichal on Monday July 24, 2017 @02:12PM (#14841091)
My complete guess:

Netflix mass-negotiates content contracts with distributors for lump sums. The distributor then pays out one-time royalties from that lump sum.

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Re:Verizon Throttles Netflix Subscribers in Test It Doesn't ... by logfromblammo on Monday July 24, 2017 @05:53PM (#14843071)
My guess is similar, except that the distributor never actually pays out royalties; instead using Hollywood-accounting to funnel the extra money away into the contract for some captive film-rights service company owned by contacts and cronies.
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