> same amount of money for a worse product.

I like physical media, but this is not objectively true. Digital purchases come with benefits consumers want like quicker access, less materials waste, and (in general) more longevity since a digital product cannot rot or be damaged. Obviously that last one is lessened because the seller is able to yank your "license" at any time, but it generally holds that you're in less danger of a little brother snapping a disc in half or a roommate borrowing and losing it.