Photo: Gigwise

The music industry has hit a new major milestone in the digital revolution, with digital downloads and streaming services outselling CDs for the first time in history.

56% of music sales in 2012 has been downloads and streams, figures show that £86.5million was earned from digital formats, with album sales up 22% on the last quarter of 2011. Physical formats earned the industry £69.3million in the same three months.

"This is a significant milestone in the evolution of the music business," says BPI chief executive, Geoff Taylor. "UK record labels have embraced digital to their core, supporting innovation and licensing more new online and mobile services than any other country."

He emphasised that there was still a place for CDs in the music industry, and added that CDs remain popular gifts at Christmas.