It is to promote the artist, and could show growth of the artist as they progress throughout their career. Also to give background information for them. Furthermore to to collect them as it is exclusive.
Why are digipaks still used despite CD sales dropping?
It is used for combating piracy as it shows you are a true music fan by buying the album rather then downloading it for free illegally. Also it carries extra stuff that you will not obtain by downloading that might interest the purchaser and make it moneys worth.
How important are the ancillary products (Digipaks, advertisements) to the artist and the industry?
First of all you have to have advertisements to promote the artist or else you would not know if they have a new single out of any news about them. It promotes the artist even more by giving extra information that you would not normally find on downloading sites.
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