3. Netflix bears insisted the company's cash flow would present serious obstacles. Netflix had negative free cash flow of $42 million in the last quarter. "The company was thought to be incapable of raising money that it needed to survive. But these are more bountiful times." In other words, the company has access to the money it needs to acquire content.
4. Netflix has a 'cool' factor and it's rapidly approaching HBO with total numbers of paying customers. "HBO had 28.7 million paid U.S. subscribers at the end of the year, according to SNL Kagan, while Netflix's paid streaming subscribers at the end of March totaled 27.91 million," wrote the Wall Street Journal.
5. People watch TV differently and the popularity of long-form arc series play to Netflix' business model. "You can't just start watching hot shows such as Breaking Bad or Walking Dead or Mad Men," said Cramer. "If you're new to the series, you have to watch from the beginning." In other words, Netflix provides access to earlier episodes of a series.
All told, Cramer thinks Netflix has landed in the sweet spot.
"Netflix exists because people want to watch programming when they want to on the device they want to," Cramer said. And that's a trend the Mad Money host doesn't expect to change anytime soon.