They don't care about Krazam, but they want this particular video to go away. People can be fickle about their music and the resulting concerts. People tend to view corporations and music (really all art) as orthogonal concepts. Art can only be tainted by corporations, therefor any kind of corporate music festival can only be subpar.
I suspect they know the accusations are fair, but were hoping nobody would call them out for it.
https://en.wikipedia.org/wiki/Streisand_effect