Now look what Youtube has become. Can anyone imagine the world now without Youtube or a Youtube-like service?
Who knows what the world could've been if Grooveshark was also acquired by a big company and won its lawsuits. Maybe it would've turned into a major free audio-book platform, or a major podcast platform, or a major indie music artist platform (like how many new artists became popular on Youtube first).
The studios really are innovation killers in their quest to only be paid through the old business models. They only change when they have no choice but to accept the change (like when losing lawsuits against certain companies which they try to shut down). Then they act as if they encouraged that sort of innovation in the first place when they testify in Congress for new copyright laws.
Anyone still remember Turntable.fm? Yeah, they killed that one, too, and I remember it was seen as a highly innovative service.