I mean, he's... technically right? Netflix could start showing ads, and increase revenue (either from creating a lower price tier that encourages more adoption, or by adding ads to the lowest price tier to increase revenue).
Of course, that's also the same logic that hundreds of tech companies have already "figured out" about ads. And it always ignores the knock-on effects of ads seeping into other price tiers, of ads taking priority over other features, etc. etc... that eventually destroy entire platforms and pieces of software.
It won't increase revenue if a large chunk of the currently subscribed-for-life people bail, it'll be eternally forfeited profits.
Just as a thought experiment - how many people currently subscribed would be subscribed for 30+ more years if they could just maintain what they have been doing for 30 years? The potential lifetime revenue is so huge it is a shame any time they do something that makes a lifetime subscriber bail on 30+ years of subscription payments without a second thought.
It's like they have the fish on the hook and they're debating if they can catch more fish by cutting the ones they have loose.
Of course, that's also the same logic that hundreds of tech companies have already "figured out" about ads. And it always ignores the knock-on effects of ads seeping into other price tiers, of ads taking priority over other features, etc. etc... that eventually destroy entire platforms and pieces of software.