The Digital Revolution Trade as Apple-EMI Deal To End Restrictions May Spark Download Deluge

The digital revolution continues to unfold at the speed of a Gwen Stefani download. Record giant EMI Music announced today it will sell significant parts of its music catalog on Apple's i-Tunes without anti-piracy software or digital rights management. Steve Jobs is lobbying other labels to follow-suit. Will the demise of copyright protection give birth to new streams of revenue?

CNBC’s Silicon Valley Chief Jim Goldman joins the guys for the conversation.

Jim says this deal could potentially become a huge new revenue stream for Apple (AAPL). If other labels do the same, Jim thinks there could be billions of additional downloads.

Jim adds, “This deal is a rising tide that floats all boats. Everybody wins.”

Tim Strazzini says the deal shows how desperate EMI (EMIPY) is… and in the near term EMI will see a further decline in sales.

Jim adds last year the record industry sold 20 billion songs with no DRM (digital rights protection) protection.

Eric Bolling says the only trade here is to own Apple (AAPL).

Tim Strazzini agrees that Apple is the biggest winner and, he says, intellectual property stocks might get a little cheaper as a result.

Guy Adami adds that investors should “take it downstream” and own content provider Viacom (VIA).

Jeff Macke likes Guy’s stock recommendation, and echoes that investors should buy the content providers.

Questions? Comments?

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