Terms and ConditionsNetwork Management Guide
The internet is a complicated place.
But Per their TOS they are not throttling, netflix simply has choosen very poorly CDN's to deliver their content.
Congestion ManagementVerizon Online does not affirmatively manage congestion on the network through mechanisms such as real-time throttling, blocking, or dropping of specific end user traffic. There are no usage caps applicable to Verizon Online's Internet access services.
Bandwidth is provided on a per-line (not a per-device) basis. The speed of the service may vary based on network or Internet congestion, your computer configuration, your use of FiOS TV video on demand service (VOD), the condition of your telephone line and the wiring inside your location, among other factors. Your FiOS Internet service and FiOS TV VOD service share capacity on the fiber-optic connection to your home. The capacity available for your FiOS Internet access service may be reduced if you are watching multiple FiOS TV VOD titles simultaneously.
Application-Specific BehaviorExcept as noted below with respect to blocking outbound traffic on port 25, Verizon Online does not block or rate-control specific protocols or protocol ports other than for security reasons as set forth below, modify protocol fields in ways not prescribed by the protocol standard, or otherwise inhibit or favor certain applications or classes of applications of traffic on our Internet access service.
Netflix is being VERY DISENGENIOUS in their public media stunts.
If you want to understand what's going on, then you should take a moment to glance over the following articles to get a better understanding. I'd start filing complaints with Netflix and the BBB personally
For a better understanding, Follow industry analyst Dan Rayburn's articles that set the record straight. Or one of the best stories is an informative piece by Maggie Reardon on CNET, which explains what is really going on in more layman's terms
I find the following Quote from Dan Rayburn to be of particular interest myself.
In a little known, but public fact, anyone who is on Comcast or Verizon and using Apple TV to stream Netflix wasn’t having quality problems. The reason for this is that Netflix is using Level 3 and Limelight to stream their content specifically to the Apple TV device. What this shows is that Netflix is the one that decides and controls how they get their content to each device and whether they do it via their own servers or a third party. Netflix decides which third party CDNs to use and when Netflix uses their own CDN, they decide whom to buy transit from, with what capacity, in what locations and how many connections they buy, from the transit provider. Netflix is the one in control of this, not Comcast or any ISP.