I had to deal with a similar quagmire. The first big label who does will reap huge rewards. The musicians must want it. Most of the customers are honest. We will pay for the tunes we use.
New channels can develop.
Focus on the honest customers, make product for them, the dishonest ones will get a clue. I think there's a simple solution to the problem. Now, it may be naive, I'm just a user, albeit a passionate one. I love music. I almost always have music on when I'm writing and browsing.