By a hair, I mean a 1.4% gain in total consumer rental and purchase spending to $8.4B, according to data released today by DEG: The Digital Entertainment Group. Netflix and, to a lesser extent, Amazon and Hulu Plus deserve most of the credit for the uptick: Spending on subscription streaming services was up 430.2% to $1.1B, accounting for 13.1% of all home video spending in the period. That outweighed the impact of Netflix’s diminishing promotion of subscription DVD rentals. Spending in this category was -50.4% to $671.9M. Consumers also spent more for streaming subscriptions than they did to rent discs at kiosks, almost exclusively Redbox now that it has bought NCR’s Blockbuster Express machines: The kiosk business was up nearly 23% to $990.5M. The other notable gain in rentals was in VOD, up 11.6% to $983.6M. Rentals at brick-and-mortar stores fell 33.4% to $597.5M.
Related: Consumers Poised To Pay More For Web-Delivered Video Than For Discs: Report
But the report shows that the industry is still suffering from consumers’ cooling desire to own DVDs. DEG offers a single number for DVD and Blu-ray disc sales — packaged goods collectively were down more than 3.6% to $3.7B. (That’s an improvement from the first half of 2011 when packaged goods sales declined 18.3%.) The industry group makes it clear that DVDs are to blame. It says that consumer spending to own Blu-ray discs was up 13.3% vs a dollar number that DEG doesn’t provide for the first half of 2011. Internet downloads failed to make up for the declining DVD sales, although the electronic sell-through category was up nearly 21.9% to $329.4M. That increase “underscores the expansion of the UltraViolet cloud-based system,” which had more than 4M accounts, DEG says.
Related: Global Filmed Entertainment Spending Will Pick Up Through 2016: Forecast


“Spending on subscription streaming services was up 430.2% to $1.1B, accounting for 13.1% of all home video spending in the period.”
Most of the increase in streaming subscription and corresponding fall in disk subscription is really just the DEG shuffling money around. Up until late last year Netflix did not separate out digital and disk revenue so the DEG lumped the two together as disk revenue and the digital subs category only had a tiny amount of revenue from whatever services they did have figures for.
They do have breakout figures now, but still calculate growth/shrinkage figures using last years flawed stats, hence the unrepresentative growth/fall in each category.
Enjoy!
Milt R. Smith