Likely so. But it still takes time to take the CDs out of jewel cases, load the loader, ensure proper operation, tag if necessary. Then there's capital cost, running the thing, power costs, maintenance costs, et al. Don't forget unboxing all those CDs and re-packaging them in the correct jewel cases. Labour costs = high. Capital costs = high. Overhead costs = high.
To go back to my wine storage example, every bottle that they have in their inventory is photographed, has a bar code lable attached, and is matched up with a description of the wine, it's maturity level, etc. In other words, lots of up front labor. Not to mention they pick up and deliver. I can't believe that the capital costs for CD ripping would exceed the capital costs for wine management. Check it out if you'd like at www.vinetrust.com. If Vintrust can provide all the services that they do. It should be cheaper than a $1.50 to rip a CD.