The volume of UK single sales grew for the fifth successive year, according to new figures from the BPI.
Total single sales increased by 6 percent from £177.9m in 2011 £188.6m in 2012, with 99.6% accounted for by digital tracks.
CD singles sales nearly halved - falling from £1.1m in 2011 to £0.6m last year.
Gotye's Somebody That I Used to Know was 2012's biggest-selling single, with X Factor's James Arthur the highest placed British artist at number five, Official Charts Company data showed.
Psy's Gangnam Style was one place behind.