problem of usage license rather than format
So the artist creates the music but as theyre piss poor broke they rely on an advance from a music company to get them advertising and pay for their living, in which case the music industry takes quite a large slice of the pie. The music company is funded by shareholders who all want a share of the profit as that's why they put the money in the business in the first place. Once the music is created, the format for the master is cut and that becomes the golden source. The music company has to recoup their costs and sell the product. Ideally, they would like to sell the same thing multiple times to the same person to maximize the revenue and potentially have a big slush fund. The problem is the format and security on the format is "easily" (with the right tools) intercepted and converted into something else. As the internet is essentially the Wild West, jurisdiction of it is impossible and ends up at a country's/unions "borders".
If the music company could lock down the format to be only played by one device they would, this has probably been tried and failed in the past - essentially the People (or the Plebs if your a Roman (pleb being a free citizen of plebian status rather than slave and so had rights)) do not like to be told what they can do with something that they have bought the rights to listen to/watch/use and so will convert/subvert it to their own use.
The government owns a duty of care to its people but also to the companies that may/may not pay Tax to them (depending on how good their accountants are). The theory is that the goods sold have a level of taxation that is collected by the Revenue Office and are for the good of the social aspect of the country. The reality is that the tax collected may find its way back to the pocket of the music company due to a variety of schemes that are employed to minimize the tax profile of a company (for the benefit of the shareholders).
So the problem ends up that the music company believes that they are being ripped off on their products and hence needs the government to intervene so that in the long run, their theory is that they can pay more Tax and so help the country. The reality is that the Plebs don't like to pay twice for the same thing and so will "challenge" any formats that limit their ability to enjoy their goods/services. The music company calls this piracy and every person who is involved in it is helping fund terrorism/etc whereas in reality, probably 99.9% of the Plebs listen to it for 3 months and then move on to something else. Even with a ripped CD, theres probably about 30% of music worth listening to and the other 70% is listened to once and then skipped - or it never makes the favorite playlist.
Streaming companies have stepped into the gap so that the Plebs can listen to their favorite music, endure a few ads as they dont want to pay for it, and if they really do they can purchase a digital format that can be centralized and shared among their many devices.
The music company revenue model accounts for sales and not for other digital services that they could make revenue from - hence their drop in traditional markets and the perceived lower total revenue sales in digital than what they believe they are due (if a traditional model was applied). The Plebs are loyal to the Artist and not the music company as they are perceived as not having a value add and being greedy in terms of the slice of the pie they believe they are entitled to.
So... to cut to the chase, if the music company had actually marketed itself to its customers rather than just the artist, they may actually have some support from the Plebs. As they are seen as trying to stifle the market and introduce barriers/limits to entry to the music industry, transactions/sales, and overall crying "Wolf" with a "poor me" attitude, the Plebs have moved on and don't give a flying monkeys about them - they love their Spotify/[insert streaming music supplier here]/etc as that's whats being marketed to them.
So how does a company get loyalty from their customers... they should probably go talk to Apple marketing, take notes and not indulge in the after meeting drinks.
Now..wheres my vodka...