A few reasons why newer acts have to rely on digital downloads for selling their music, as opposed to the traditional vinyl record or CD format:
There are many fewer stores selling new CDs and other 'hard copy' home entertainment. Older people like to own a physical asset; younger people prefer to subscribe to streaming services, or portable entertainment that can amuse them anywhere on their phone.
I spoke with Chelsea Tyler of Kane Holler, (she's the youngest daughter of Aerosmith lead singer Steven Tyler), at The Mod Club seven years ago. She said the major hurdle for new acts is that record companies don't want to invest money in the packaging costs for recording artists who do not already have a proven record for physical sales. A CD costs pennies to manufacture. The jewel case/ booklet/ sleeve in which it's stored is much more expensive to manufacture. I bought Kane Holler's 4 song EP at the show, (I think I was the only one who bought any of their merchandise), on the condition that Chelsea sign it for me. She was cool with that.
Almost five years ago, I saw Vanessa Carlton at Longboat Hall - that's the lower bowl concert venue in The Great Hall at Queen Street West and Dundas. Tthe building is a former Templar Lodge, now rented for events; acoustics are excellent. Vanessa sells CDs and T-shirts at concerts, and they are expensive, but about ten minutes after the show, she comes out and personally signs and speaks with anyone who bought tour merchandise, so part of the cost is for that meet and greet opportunity.
I'm not a huge fan of Vanessa's music, but I very much approve of the career path she chose. Most people think of her as a one-hit wonder for her song 2002 song
A Thousand Miles. The lead single from her follow-up album was
White Houses:
Which only played on MTV a couple of times. The lyrics refer to a young lady losing her virginity, and someone with a bug up their ass complained. Walmart refused to stock the album unless the track was removed. Vanessa refused, her record label did next to nothing to promote the album, and soon dropped her from the label. She now makes Indy music, and earns enough from sales to her hard core fan base that she doesn't need to have a day job. The stories that she tells between songs are almost worth the price of admission to one of her shows. She could have been a big star, but chose to be true to herself instead.
I have a theory that what put Kurt Cobain over the edge was that he caved in to Walmart; he allowed Geffen Records to change the name of the song
Rape Me from In Utero to "
Waif Me" for copies sold at Walmart, and I think he lost self respect for making that decision.