Consumers spent $3.9B in the quarter, up just 0.24% vs. the period last year, according to data out today from DEG: The Digital Entertainment Group. But the real story is about the continuing shift in where people spend. Sales of packaged goods — which includes both DVDs and Blu-ray discs — fell 4% to $1.67B. DVDs were the culprit; DEG says that Blu-ray disc sales were up 22% but doesn’t provide a dollar figure. In rentals, revenues from brick-and-mortar stores such as Blockbuster fell 18.7% to $286M, while subscription disc services including Netflix were down 50.4% to $301.5M.

These declines were offset by increased spending for online sales and low-priced video rental sources. Electronic sell-through was up 37.7% — but just to $187.1M, about 5% of total home video spending. Consumers spent a lot more on rentals: Subscription streaming services were up 126.8% to $579.2M, while spending at kiosks was up 9.9% to $454.8M. That’s just slightly less than the outlay for VOD services, up 8.5% to $455.4M.