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Actually if you click on the source that this link is referring to it says:

"Overall home-entertainment revenue, including DVD and Blu-ray sales, rentals, video-on-demand and digital downloads and streaming, fell 3.2% in the third quarter to $4 billion"

"The Digital Entertainment Group, an industry trade association, reported that rental revenue rose 9.9% in the three-month period ending Sept. 30, even faster than the 8.3% growth it experienced in the first half of the year.

Every other sector of the home entertainment business, including DVD sales, high definition Blu-ray disc sales and digital transactions, grew slower or shrank faster than during the first half of 2009."

http://latimesblogs.latimes.com/entertainmentnewsbuzz/2009/10/accelerating-rentals-prop-up-shrinking-home-entertainment-biz.html

So basically this thread is just spin. Surprise, surprise.