Despite skeptics, this model persists, and a lot of ISPs have agreed to pay.
http://www.dslreports.com/shownews/ESPN-360-Model-Continues-To-Take-Flak-110062
But here's the fun part. These ISPs are also MVPDs (video providers). They therefore negotiate this access as part of their overall retransmission fee for ESPN.
This is no to say the model won't have consequences, especially for online video and for smaller ISPs. But it does suggest the model is unlikely to become generally popular.