The entertainment industry killed the original Napster, they just killed Grokster; but you can best believe file sharing will survive.
The pity is that if they made their peace with it they could make trillions. All their old play lists would be marketable. With this method of distribution small bands, regional music and other niche styles could be profitably promoted. It would be like the old 45RPM, only even better, because everything ever recorded would be a single.