Why cuts into vinyl covers?


Sorry if this has been asked before.  In my search to purchase vinyl I come across albums that have holes drilled or half inch cuts into the corners of the albums.  I've come across this on CD cases as well.  Does anybody know, who does this and why?  And do you think it devalues the album?
Thanks in advance.

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Thanks guys.  All my questions were answered and my curiosity satisfied.  And got an education to boot.  I knew the music industry was corrupt, but I was not aware of Morris Levy.  What a sleazebag of an individual.  He doesn't need to glorified, but you have to admit, that is a Netflix worthy biopic waiting to be written.