The retailers to which a distributor sells records sometimes have the right to “return” any unsold physical records to the distributor for full credit. The distributor allows this so that these retailers stock more physical records than they otherwise would.
The New Formula for Success in the Music Business
The old method of promoting a new act in the music business was for a record company to invest at least $500,000 in studio time with a good producer, the cost of a good video, the advertising budget, and the cost of the first promotional road tour.