When LPs were the primary medium for the commercial distribution of sound recordings, manufacturers would cut the corner, punch a hole, or add a notch to the spine of the jacket of unsold records returned from retailers; these "cut-outs" might then be re-sold to record retailers or other sales outlets for sale at a discounted price.
wˌɛn ˌɛlpˈiːz wɜː ðə pɹˈaɪmɚɹi mˈiːdiəm fɚðə kəmˈɜːʃəl dˌɪstɹɪbjˈuːʃən ʌv sˈaʊnd ɹᵻkˈoːɹdɪŋz, mˌænjuːfˈæktʃɚɹɚz wʊd kˈʌt ðə kˈɔːɹnɚ, pˈʌntʃ ɐ hˈoʊl, ɔːɹ ˈæd ɐ nˈɑːtʃ tə ðə spˈaɪn ʌvðə dʒˈækɪt ʌv ʌnsˈoʊld ɹˈɛkɚdz ɹᵻtˈɜːnd fɹʌm ɹˈiːteɪlɚz; ðˈiːz "kˈʌtˈaʊts" mˌaɪt ðˈɛn biː ɹˌiːsˈoʊld tə ɹᵻkˈoːɹd ɹˈiːteɪlɚz ɔːɹ ˈʌðɚ sˈeɪlz ˈaʊtlɛts fɔːɹ sˈeɪl æɾə dɪskˈaʊntᵻd pɹˈaɪs.