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"UK sales of music via digital downloads and streaming services such as Spotify and We7 outpaced physical sales for the first time in the opening three months of 2012, a new report has said.  According to data released by trade body the British Phonographic Institute (BPI), digital accounted for 55.5% of UK trade revenues in the first quarter of this year, generating a total of \u00A386.5m, up 23.6% year-on-year. Total UK record industry revenues were up 2.7% year-on-year to \u00A3155.8 over the same period, but sales of physical formats such as CDs were down 15.1% to \u00A369.3 million.  The report was released the day after Sky blocked access to file-sharing site The Pirate Bay in the UK following a successful court action by the BPI.  The BPI said that a &amp;quot;diversified revenue base and strong growth in a la carte albums sales and paid subscriptions&amp;quot; helped digital account for the biggest proportion of recording industry earnings for the first time in Q1, 2012.  Sales of digital albums &amp;quot;contributed significantly&amp;quot; to the rising digital revenues, said the BPI, as they were up 22.7% to \u00A335.9m, outstripping earnings from downloads of single successive tracks for the second successive quarter.  Paid-for digital music subscription services performed even stronger, with income up 93% year-on-year to just under \u00A39m.  Advertising-supported, free music streaming services, such as Spotify and We7, pulled in first quarter revenue of \u00A33.4m, up 20% on the same period in 2011.  BPI chief executive Geoff Taylor said that the quarterly results represent a &amp;quot;significant milestone in the evolution of the music business&amp;quot;. However, he also warned that the shift to digital will have to continue over several quarters to prove that the industry has &amp;quot;turned the corner&amp;quot;. &amp;quot;UK record labels have embraced digital to their core, supporting innovation and licensing more new online and mobile services than any other country. As a result, the industry&amp;#039;s prospects for growth look brighter than for several years,&amp;quot; said Taylor.  &amp;quot;We will need to see this trend repeated for several quarters to say we have turned the corner - demand for physical CDs remains strong in the UK, especially in Q4. &amp;quot;However, the creativity, investment and digital expertise of the British music industry point the way forward for growth in the UK economy.&amp;quot; "^^<http://www.w3.org/2001/XMLSchema#string>
<http://www.digitalspy.com/tech/news/a384653/digital-music-sales-overtake-physical-for-first-time/>