Open standards (and free software as well) do not directly fight closed distributors (both media and software) or ask them to change their ways. But what they do is give a more open upstart a significant advantage; an advantage that helps them offset some of the other shortcomings they have.

So if my company had average content that could reach 2 billion people against Mediaflix's 50m with closed silverlight, I'd still survive. Once I start making better content, Mediaflix is forced to do something or they'll slowly die.