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TheStreet.com TV Recap: Wrecking the Record Companies

Apple's offerings are doing that, as Google is doing to newspapers.

The fact that iTunes is going to be selling

EMI

record label songs without copyright protection software is a "psychological positive for

Apple

(AAPL) - Get Apple Inc. Report

," Jim Cramer said on TheStreet.com TV's Wall St. Confidential

Web video Tuesday.

"It is a generational issue," he told Gregg Greenberg, the host of Wall St. Confidential. "People in their 40s, 50s and 60s, who may be familiar with this music, are not big downloaders, but they are big shareholders and retail investors, so it could propel Apple to $100."

The Beatles stopped writing music a long time ago, and the Rolling Stones stopped innovating a long time ago, but psychologically it's another reason to own Apple, Cramer said.

"Apple is the greatest, other than

Google

(GOOG) - Get Alphabet Inc. Class C Report

, destroyer of traditional intellectual property out there," he said, comparing the record business to the newspaper business.

Google destroyed the newspaper model and Apple and iTunes are destroying the record label model, Cramer said. How Apple destroyed the model has nothing to do with the music itself, but how the music was being sold, he explained.

"It was sold by the album or the CD, and you had a lot of

music you didn't want," Cramer said. "That's not the way the younger people like to buy it."

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People have to recognize there are certain traditional business models that have not done well, he said. "

Warner Music

(WMG) - Get Warner Music Group Corp. Class A Report

,

Vonage

(VG) - Get Vonage Holdings Corp. Report

and

Tribune

(TRB)

are all failed business models."

Market players want to believe there is still value at these companies, but if they listen to Warner's conference call, they'll realize the entertainment company is "in complete denial," Cramer said.

"That company is totally at the precipice," he said. "You cannot trust them."

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