The system (10) includes a digital media creator-destroyer apparatus (12) for receiving and storing digital media from a remote digital media source (20), for generating multiple transferable copies of the digital media, and for destroying unused copies of the digital media. The digital media creator-destroyer apparatus (12) is housed within a retail store (14) or similar outlet that displays transferable copies of digital media to end-user purchasers. The system (10) provides retailer control at a single store (14) level, regional or national (38) level of inventory, distribution and destruction of digital media, such as music, movies, video games, computer software, ring tones for cell phones, etc., stored on compact disks, digital video disks or other apparatus capable of storing and transferring digital media. Destroying unused copies eliminates cost inefficiencies of the retailer having to return unused copies.