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So this raises two questions I hadn't thought of before. (1) Doesn't this totally wreck the ISP argument for charging Netflix extra? (2) What's to prevent me from setting up the same sort of caching in my house and effectively breaking the Netflix DRM?

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This came up on HN not too long ago - I imagine it's how they do the caching:

https://www.netflix.com/openconnect/hardware

To answer 1, I would guess this kills the argument for a wired connection, but not necessarily wireless since there are greater bandwidth restrictions. That's just a guess though, since my perception of how far wireless tech has come might be off.

2) as colinsidoti says, our ISP has the hardware from Netflix (& others). We plug it in, tell them the public IP address and forget about it from there.

1) Remember their argument is not logical. And it's a secret that we have local caches in our network, so nobody is allowed to know that anyway.

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