Sales of digital music tracks rose by 45 per cent in the US in 2007, it has been reported.
And while overall music sales increased by 14 per cent according to Nielsen Soundscan, album sales have dropped by 9.5 per cent.
The popularity of digital downloading has also impacted upon physical album sales with a 19 per cent decline for current and catalogue releases.
Digital sales now represent ten per cent of all albums sold, almost twice as much as the 2006 figure of 5.5 per cent, after digital album sales climbed 53 per cent to 50 million in the last 12 months.
The Nielsen Soundscan data also revealed the biggest-selling artist of the year in the US: Josh Groban.
The 26-year-old's Noel was the bestseller of the year, with 3.7 million units sold.
As well as being the only album to sell over three million copies, it was also the first Christmas-themed album to top the Soundscan charts since sales tracking began in 1991.
The soundtrack for Disney's High School Musical 2 shipped 2.96 million units, while the Eagles' eagerly-awaited Long Road out of Eden sold 2.6 million.
Kanye West's Graduation claimed the biggest sales week of the year, shifting a massive 957,000 copies after its mid-September release in the US.
The digital boom was also noticeable in downloads of the biggest singles of the year, with Soulja Boy's Crank That selling 2.7 million copies.
While only one track sold more than two million copies in 2006, nine managed the feat in 2007.