The RIAA strategy is an example of a new legal phenomenon that I have dubbed "spamigation" -- bulk litigation that's only become practical due to the economies of scale of the computer era....
The RIAA uses systems to gather lists of alleged infringers, and bulk-sues them. It has set a price that seems to be profitable for it, while being low enough that it is not profitable for the accused to mount a defence, as they do not get the economies of scale involved.