2012 reached an annual record-breaking digital sales total for films, music and games of more than £1bn, according to a UK trade organisation.
The figures show digital sales have increased 11.4% from 2011, which means that digital sales account for 25% of the entertainment market, according to the BBC.
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Video games accounted for the biggest proportion of digital sales, growing 8% to £552m to represent more than half the total of digital sales.
Digital sales of music of £383m were up 15.1% compared with 2011 and film sales were up 20.3% to £98m.
The total of just over £1bn in digital sales reflects the huge investment in services which enable consumers to make purchases anywhere and at any time, said Kim Bayley, director general of the Entertainment Retailers Association (ERA).
Traditional trade remains resilient, she said with 75% of entertainment sales still on disc. But commentators say digital sales are not making up for the fall in traditional sales.