Short sighted for who? Executive compensation is tied to stock performance via options. If their actions boost the stock price in the short term, what do they care about the companies performance at a future date after they've cashed out?
We're currently in the extraction phase of our neoliberal economic system's lifecycle and it's only downhill from here.
They know it has. Think of this like when a porn studio uploads their own films to a torrent site, and then goes after people who download them.
Except, in this case, everyone involved are terrible human beings. So... while I will never cheer for Sony Music, I will happily root against all the AI/tech companies they go after for scraping their catalogues.