Why is the entertainment industry so stupid?

This is a sincere question.  I don't understand. I get that the overwhelmingly consistent opinion within the music industry as corporate entities is that piracy is singlehandedly undermining the industry, that they're entitled to retain a world that supports their business model, that it's possible to threaten people away from piracy, and that it's proportional to massively fine poor students to do so.

And I get that the overwhelmingly consistent opinion of everyone else who's remotely qualified to address the subject (including most of the artists and production companies represented by the aforementioned corporations) disagrees with some or all of the above premises.

Here's what I don't understand:  Why isn't the recording industry changing its mind?  I get that it's an unpleasant truth, but is it really so unpleasant that none of the major corporations can handle entertaining it?

Is there some entity that actually benefits from refusal to adapt?  Is there some force with a genuine interest in preventing the entertainment industries from coping with changes to the world around them?

Or is it just that the structure of a corporation as an entity is fundamentally incapable of grappling with its own mortality?

Maybe it's like the global climate change thing, that corporations can't cope with file sharing because it's an existential threat, in the same way climate change is an existential threat to humanity, and a lot of humans just can't deal with that.

If I have any readers who understand this issue more intimately than I do, I'd love to hear from you in comments.