So basically what he's saying is he doesn't want to look like the bad guy to his customers. His customers are demanding better netflix performance. The appropriate thing in this situation to do, if a majority of his customers are asking for it, is to run the line to the pop where Netflix is at, and charge the customers more money to make up for the cost. Instead, he wants to whine that Netflix should come to him.
Two problems with that:
1. Netflix doesn't run an ISP. They don't run fiber, they aren't a service provider. If their current bandwidht providers don't service the pop this guy is in, that doesn't really appear to be their problem to me. His problem is with Cogent and Level3, not Netflix (but he already knows that)
2. What is their incentive to do so? So that he can continue charging his customers the same money while Netflix incurs additional cost?
No, it isn't Netflix' problem that you don't have a peering agreement with your uplinks at their nearest pop to you. It also isn't their problem you aren't a tier1 and have to pay for your transit. If your customers want it badly enough, they'll pay for it. Hell, send them all a survey saying "hey, the only way we can make netflix faster is to spend a bunch of money, here's what it's going to cost, would you like us to do it?".