Digital sales break £1bn barrier
2 January 2013 Last updated at 06:05 GMT
More than £1bn was spent on downloaded films, music and games in 2012, the highest annual total.
Sales increased 11.4% from 2011, meaning that a quarter of the entertainment market is now digital.
More than half of the digital sales went on video games, which grew 8% to £552m.
Rory Cellan-Jones reports.