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Yes, they “shut down” Napster (by simply buying it up and turning it into a legitimate outlet). But alternatives kept springing up (as well as non-web based hosts, like Usenet and torrents etc). It’s only really when the music industry embraced downloads that those alternatives basically became redundant.
And, having embraced downloads, the industry “superceded” them with streaming music instead.
But the point is, they got onboard and it fundamentally changed the delivery mechanism of music for ever. Had they not got onboard, they were losing revenue (and obviously by enough to make them make the move to embrace the technology they previously just tried to shut down).
Who buys CDs and LPs any more? Twenty years ago, the idea that you wouldn’t amass a music collection by lining up plastic cases on a shelf was unheard of 😉