This Is How Netflix Does Its Magic

Netflix has a proven business model.
By Brian Sozzi ,

Netflix (NFLX) - Get Report has quite the magical formula.

Amid Apple's (AAPL) - Get Report $1 billion investment in original programming, TheStreet's founder and Action Alerts PLUS portfolio manager Jim Cramer said the move takes aim at Netflix. But, as Cramer points out, Apple will have a tough time catching up to Netflix because of its knack for creating great content. 

Apple's intention to spend $1 billion on content comes on the heels of its underwhelming 10-episode serial "Planet of the Apps," which aired its final show on Tuesday. The much-hyped series, which featured groups of eager app developers as they sought to win over four judges for Apple's blessings and financial support, failed to draw a wide audience.

That three of the four judges -- actress and Honest Co. founder Jessica Alba, musician Will.i.am and actress Gwyneth Paltrow -- had scant credentials to offer guidance to tech-savvy app developers may have been one reason for the show's paltry following. It also may have had something to do with "Apps" being conspicuously similar to ABC's "Shark Tank" and NBC's "The Voice."

Apple is a holding in Jim Cramer's Action Alerts PLUS Charitable Trust Portfolio. Want to be alerted before Cramer and the AAP team buy or sell AAPL? Learn more now.

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