London - More than £1bn ($1.6bn) was spent on downloaded films, music and games in 2012, the highest annual total, according to figures released in London by Entertainment Retailers Association (ERA)
Sales increased 11.4% from 2011, meaning that a quarter of the entertainment market is now digital. The figures also show a big drop in physical sales - more bad news for high street shops.
Sales of CDs, DVDs, Blu-ray and video games fell by 17.6% in 2011 although they still make up most of the market.
Kim Bayley, director general of the Entertainment Retailers Association (ERA), said that breaking the £1bn barrier was an "incredible achievement" for retailers.
"This reflects their huge investment in new and innovative services - which means you can buy music, video and games literally at any time of the day and wherever you are.
"At the same time I suspect that many people will be surprised to learn just how resilient the physical business still is - with three-quarters of entertainment sales still on disc.
"Downloads offer convenience and portability, but people still seem to value the quality and tangibility of a physical product."
More than half of the digital sales went on video games, which grew 8% to £552m ($883m)
Films and music had a smaller share of the digital market but sharper growth - downloaded films up by 20% and music by 15%.(FA)
