youtube is a symptom.
record companies' greed, short sidedness, and RIAA legal actions, etc., instead of effectively managing digital distribution and sharing when Napster, Kazaa, etc., were emerging destroyed the industry, reduced profits, limited funding for new and established artists, limited investment in non-mainstream commercial music, etc., from which it never recovered.
In the late 90s/early 00s, I worked on a system prototype for p2p digital content distribution, content sharing and tracking, and embedded digital rights management. We shopped it to several record labels, and industry organizations that license music for commercial use, etc.
All of them equated digital sharing of music with illegal distribution, stealing, etc., instead of addressing the issue effectively, they took legal action.
We had data that basically said the "genie was out of the bottle" and it wasn't possible to put it in; i.e., their legal actions would not stop the technology. Industry data also indicated that music consumers were willing to pay a fair price for music if it was easy to find, access and use. The ignored the data, and let tech companies control the online music distribution middleman position, between the record companies/artists and the consumers. Big mistake, opportunity missed. Now everyone in the industry including music consumers, has to deal with the results.
same thing is happening with AI tech today...
Gabe Newell, the CEO of video game company Valve Software, famously (and correctly) recognized that almost everyone else fundamentally misunderstood the piracy problem. Everybody thought it was a money or pricing problem, when it's actually a service problem.
In other words, most people don't pirate things because they can't afford them, they pirate because the "customer experience" of pirating is better than the customer experience of buying the product legitimately.
For the longest time, video games were all individual pieces of software that installed who knows what kind of computer-destroying copy protection DRM on your PC alongside them, and some games treated you even more like a criminal, doing stuff like making you enter a different random code from a randomized page of a the manual every time you launched it, etc. Pirating fixed that. Download game, install game, launch game to play it, done deal. Some people would even buy games legitimately and then also pirate them anyway just because playing the pirated version was faster and easier.
Don't even get me started on movies. No I don't want to sit through 18 minutes of unskippable previews, 12 minutes of warnings that I BETTER FUCKING NOT SHOW THIS MOVIE TO ANYONE EVER OR ELSE I'LL HAVE TO PAY A BILLION DOLLAR FINE AND BE PUBLICLY EXECUTED, mandatory software installations and
software updates on a movie are you kidding me, etc. When I could just rip the movie to file, double click it, and start watching it immediately. Want chapter selection? Get a README.TXT file with chapters and timestamps, done deal.
Anyway, cut to Valve creating Steam, the desktop app that's an all-in-one video game marketplace and purchased game library. It's nice to use, has tons of value adding features, and it makes the process of buying, organizing, downloading, and playing PC video games safe, easy, and fast, and now they lead industry marketshare and it's not even close. They actually turned a ton of pirates into paying customers. Somebody finally made the customer experience of buying video games superior to pirating them and people couldn't throw money at Valve fast enough. Gabe was totally right about piracy and is now a multi-billionaire.
Fin, roll credits.
Music was/is the exact same way. The industry had every opportunity in the world to take control of the digital landscape but they refused to do it because they were too stubborn, greedy, controlling, and coked up to accept change. They idiotically thought they could control consumer behavior by simply telling the customer "no" to digital distribution and digging their heels in on the demand for everyone to adhere to the archaic and limiting media formats the industry tried to dictate everyone use, so when every consumer collectively said "fine then, fuck you I'll just pirate, because mp3 and flac files let me listen to music the way I want" the industry went all surprised Pikachu face. Then "legit" music streaming services popped up and that was the ballgame. And this time, unlike Valve, they don't appear to be quite as friendly to the customers and creatives in the industry. Honestly the current music streaming business models are pretty predatory and it doesn't look like it's ever going away. Woops.