Sure, on a small scale, but Spotify, Apple Music, Tidal and I'm sure many other platforms exist and are quite successful.
I'm a big pirate myself, with multiple TB harddrives full of pirated music accrued over the years, but even I choose to use Spotify and Tidal a lot of the time, out of pure convenience.
Exactly though, the fears of the industry of the time were met, one way or the other. Spotify and others came around and basically destroyed the album / CD model, led to independent publishers having way more power than ever before. It is a record company hell that we're living in right now. Despite spending as much as they did to kill Napster, they weren't able to stop the "inevitable."
perfect example, as piracy has _never_ been effectively stopped and _never_ will be effectively stopped by legislative means