U.S. home video spending rose nearly 1 percent to $18.2 billion in 2013, the second straight year of growth as higher spending on video streaming subscriptions and digital purchases offset the decline in DVDs.
The figures were released by the consortium of Hollywood studios and electronics makers, The Digital Entertainment Group, on Tuesday.
Digital sales of movies and TV shows rose 47 percent to $1.2 billion, while subscription streaming spending rose 32 percent to $3.2 billion.
Blu-ray disc sales rose about 5 percent, but overall physical disc sales fell 8 percent to $7.8 billion. Rental revenue fell 5 percent to $6.1 billion.
The group credited the growth to increased use of high-definition TVs and Blu-ray players and greater adoption of its cloud storage system, UltraViolet, now with 15 million accounts.
