Looking at similar markets, movies cost about the same for a physical copy as they do on Google Play, books tend to cost the same digitally as they do physically, CDs cost about $11, which is what albums tend to cost on Play.
Basically I don't buy that argument. I wish I could, it's a great idea - and only fair considering the lack of transferability and the fact that there is no truck driving goods cross country to get them to me.