He managed to use a handful of examples such as cellphones and razorblades where any freebie is actually heavily subsidized by later or hidden costs.
that was his initial point. for 100 years or more, there have been 'free' products that are offered with a monthly fee, etc.
Though, he doesn't even bother to guess as to some of the future problems of the 'free-stuff' marketing model.
for the right products, there aren't really any downsides. shit, i remember when wired when digital, and i remember thinking they wouldn't last a month.