Once Upon a Time, entertainment was done on a much smaller scale than we're used to. Like one house at a time. The only way to recover money from the people doing this was to get it when they bought the sheet music.

Today, it's the opposite. You're much more likely to get your entertainment via recorded music, or at a public venue. Either of which already gets your money for the "artist". (Chyeah, you mean for the label.)

So yes, they're shooting themselves in the foot for a short term gain.