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A report being published by the Entertainment Retailers Association will this morning say that digital sales in the UK passed 1bn in 2012.

That represents the amount spent on games, music and films in 2012, although games accounted for over half of the total at 552m, climbing 7.7 per cent.

It’s the highest annual total on record and represents an annual increase of 11.4 per cent. Digital now accounts for a quarter of the overall entertainment market, partly due to a steep 17.6 per cent decline in the physical market.

"This reflects their huge investment in new and innovative services – which means you can buy music, video and games literally at any time of the day and wherever you are,” ERA director general Kim Bayley stated.

"At the same time I suspect that many people will be surprised to learn just how resilient the physical business still is, with three-quarters of entertainment sales still on disc.

"Downloads offer convenience and portability, but people still seem to value the quality and tangibility of a physical product."