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Looking at the latest data though, there is a definite rise in Digital and decrease in Physical.

U.S. Consumer Spending ($ in millions) First Half 2014 First Half 2015 YOY
Sell-Thru Packaged Goods -All  $ 3,263.14 $ 2,799.28 -14.22%
Total Rental (excluding VOD) $ 1,729.93 $ 1,642.92 -5.03%
Total Digital  $ 3,729.93  $ 4,318.50  15.78%
Total U.S. Home Entertainment Spending  $ 8,723.00 $ 8,760.70 0.43%

 

The trend of a decline in physical seems to be real.