dave of Suits wrote:
unlike a privately held company, which can take risks based on the instincts of a smaller group of owners, media giants are publicly held. They have a legal responsibility...
There are 2 angles to this. First, if this threat of legal repercussion is in fact enough to impede any member of Hollywood and the RIAA to enter a premium Kazaa into the market, then it will indeed be up to private companies - like Kazaa - to dominate this market until buying a company like Kazaa is no longer too scary for media giants to realize the potential profits of leveraging such a product.