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Everything is culture.

But yeah, the stuff produced by copyright mafia/Big Entertainment/Hollywood/whatever is far, far from the only culture that exists.

A lot of culture is happening on DRM-free places like YouTube, Vimeo, SoundCloud, Bandcamp, DeviantART, Tumblr, itch.io, etc.

Especially YouTube. It's huge. And it's full of people who download other videos and remix them in interesting ways.

Shakespeare didn't write all those plays for free.

If a modern day Shakespeare wants to create "culture," they can license their works appropriately. But for the most part the stuff that people want to copy are entertainment products.

I think the point he was trying to make is that you don't start out with culture. You start out with profit generating entertainment products, and then via the market bringing lots of people to this enterprise and survivor bias, you end up with "culture".

And as such they are at the very least displacing "culture" to some degree, and the argument thus still applies?

Welcome to your modern culture, which is centered around neoliberal consumerism.