The internet grew in large part because any joe in his basement could literally fire up a server and start offering their content (youtube, google for example started like this).
If people liked it, then it would become popular, joe would pay the ISP more for more bandwidth, then eventually monetize his business, IPO, etc.
ISPs simply moved the bytes around from any basement to the general public, and got paid based on their data plans.
Now, ISPs see that little joe became multimillion dollar netflix, and want a piece of the pie. So they slow down joe's traffic, degrade the experience of joe's users, and demand ransom, while they launch their own "netflix". Joe can't force users to switch ISPs, because unfortunately there's still a lot of monopolies out there.
This isn't new. Public utilities discrimination is well do ented, due to the same monopoly power. Back in the day, government stepped in to regulate it. One of the discussions now is if ISPs should be classified as public utilities (and subject to the same regulations). ISPs obviously don't want that, because it would close their new money spigot.
Perhaps the real solution is to simply mandate net neutrality in areas where there's no real compe ion, and even, perhaps, offer incentives to create compe ion in those areas. But that makes too much sense, so we'll probably end up with some hacked up "solution" that maintains the monopolies, and tries to keep every player happy by taking a dump on the consumer.