Companies will go bankrupt. Their business models will break down. Yes. That's intended. There's no need for these middlemen in the age of the internet.
The more effective approach would be to simply remove the economy entirely. In a post-scarcity or communist or whatever you want to call it society, you could abolish copyright entirely without hurting anyone, because no one's able to profit off it in the first place and spending effort on things that don't pay off is no longer penalized.