Figures due to be released by the Entertainment Retailers Association (ERA) show that digital downloads hit over £1bn in 2012, up 11.5 per cent from 2011.
The highest sales were for video games in which 7.7 per cent (£552m) of sales were of the digital persuasion.
Unfortunately, the figures don't look quite so rosy for old school physical media - those sales dropped 17.6 per cent in 2011 - although "proper" CDs, Blu-rays and game discs continue to make up the majority of retail sales.
Kim Bayley, director general at the ERA said it was an incredible achievement for retailers to break the £1bn barrier.
"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," she said.
"Downloads offer convenience and portability, but people still seem to value the quality and tangibility of a physical product."
If you're wanting to get into the digital downloading mood for 2013, we can think of no better place to start than T3's own award-winning iPad app. You're welcome, internet.