Sell Music Stocks

The Motley Fool slaps a strong SELL recommendation on the music/record industry, in “Putting Pandora Back in the Box:”

Thanks to record labels’ considerable whining, government and the music business seem to have joined forces to destroy popular services like Pandora, Last.FM, imeem, and Slacker… I think many consumers are catching on that when the industry howls about defending artists, it’s really just talking about defending the major labels’ broken business model, which has been under constant assault ever since the world went digital… As far as I’m concerned, their draconian reactions to music’s continuing evolution make them great examples of the types of companies and industries I avoid… As an investor, I do all I can to avoid companies that refuse to evolve, and thus find themselves on the wrong side of creative destruction. For the most part, I think the media industry fits that niche. Any company or industry that can perceive massive opportunity as a threat should strike investors as a long-term loser.