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.
More top news
North Korea is willing to hold talks with the US, Pyongyang's delegate to the Winter Olympics has said.
The shadow Brexit secretary said it would be "better" to reach "bold" new trade agreements by working with the EU.
Two other men missing on Scotland's hills this winter have yet to be found.