As a supporter of capitalism, I was taken in by the
socialist propaganda.
My interpretation is rather different. I thought the corporations are creature of politics and political institutions, rather than a product of free markets. The state make a bunch of laws that influence the size and nature of corporations, determine what they cannot do and often what they can do, and so on. The state would then give favors and listen to what corporations wanted the law to be, and so on.
Politics is the partitioning of a cake without expanding the cake. Indeed, in some case, the cake probably become smaller. Interests are easily given into thinking short term, not the general long term prosperity. They rather not work so hard amongst their competitors to get what they want.
Ease of life with no competitors to contend with on the market lead to less innovation, laziness, and blindness.
We see that the record labels are lazy and blind, and less keen on innovations. This of course make them vulnerable to adversaries and emerging competitors.
No matter how intensive their lobbying is, they are targeting consumers, not competitors. Unless their behaviors change, it will only be a matter of time before they are out-competed.