Except for the fact that regardless of any of the 3 methods Netflix has to Deliver content, there are charges and fee's associated with each.
Why are they entitled to free bandwidth on demand or free co-location services, both are established services that have been around since the internet was born and both cost money?
Balanced Peering is exactly that. If they are not using balanced peering then they should pay an interconnection fee which they always have, and every other company in the world (including microsoft and google) have and use.