Cramer speaks both sides of the mouth. In 2009, he was bashing NFLX while the stock was in the $40s. As the stock started rising to $70-80s, he changed his tunes. He then became really bullish when NFLX crossed $120 and became a big NFLX bull.
I know, I was the early investor since 2009 before it ran up to $300....
I have sympathy for Cramer. You can only truly follow a handful of stocks, yet Cramer is expected to rate thousands of stocks a buy or a sell. He's acknowledged in the past that he's primarily an entertainer.
So, when he says:
Jim: I love Netflix. I really...I love to buy, watch things. I'm a binge viewer just like Reed Hastings talked about. I like to watch five hours in a row, watch with my kids and Netflix is instrumental. They always say, 'Dad, why are you using anything other than Netflix?'
He fails to grasp the titanic shift happening (right here, right now) which his kids intuitively grasp.
Reed Hastings must be pinching himself to see if he is dreaming. Redbox/Verizon announce one day that they will offer $6 unlimited streaming, but the next day the streaming offer is pulled and we have this complicated, over-burdened hybrid Disc+Streaming offer for $8. The streaming only offer was cancelled, no doubt, because because Coinstar felt they were being excluded from a profit stream. There is speculation that they only have money for a variable pricing content deal which explains why they are only signing up EPIX which is the one outfit willing to eschew fixed pricing.
Because Amazon is bundling shipping with streaming, it cannot offer a month-by-month payment system because customers would game the shipping side of the equation, i.e., sign up for a month or two, do all their shipping and cancel until they have another load.