Global music sales have fallen by 4 per cent over the last year, according to the The International Federation of the Phonographic Industry (IFPI).
Total music sales in the first half of 2006 dropped to $13.7bn (£7.4bn) but digital sales, which represent 11 per cent of the worldwide recorded music market rose by $945m (£510m).
Meanwhile, the sale of physical formats dropped by 10 per-cent, apparently due to a surge in cheap illegal copies, reports BBC News.
The total fall is up by 1 per cent compared with the whole of 2005 but the (IFPI) confirmed that sales in the second half of the year were higher due to Christmas sales.
The British Phonographic Industry (BPI) also said that both album and single sales had shown a slight rise in 2006 compared with last year.