I attest it to how annoyed I am with Hollywood. Why are we paying these spoiled stars $20 million for 3 months (if that) of work. I would much rather pay for something that the face of the product actually had to work for.
Packaged media refers to games and movies sold in a store, brick and mortar style. As for online sales of games a la Steam or EA Link, I don't believe they are included. I agree that if those games were included, the game sales figures across the board would be much higher.
The numbers are further skewed by the movie RENTAL market. Look at companies like Netflix with more than a 45% increase in revenue last year. I know people also rent games, but Netflix or Blockbuster (and others, of course) can buy a movie once and have 100 people rent and watch that one copy. I doubt the game rental business has numbers like that.
This is also ignoring other digital distribution methods like Netflix watch online service and cable companies on-demand.