Music downloads sales soared by almost 50 per cent last year, boosted by a Christmas rush, but the recording industry failed to counter a CD slump, new figures showed.

Sales of single track downloads increased from 52.5 million in 2006 to 77.6 million, according to the British Phonographic Industry.

Despite the 47.7 per cent increase in tracks sales, music fans are still reluctant to purchase legally an entire album from digital stores such as iTunes.

CDs still dominate with 95 per cent of all album sales on physical formats. However the total CD market contracted by around 10 per cent, in line with a global sales slump.

A bright sign for the music industry was a surge in downloads in the week between Christmas and New Year. Nearly three million tracks were bought in a record week, one million up on the equivalent period in 2006.

X Factor winners Leon Jackson and Leona Lewis led the download chart. The surge was ascribed to fans purchasing tracks to fill digital music players received as Christmas gifts.

However, record companies are seeking to wrest control of the digital market from Apple’s iTunes, which accounts for 70 per cent of sales.

Mobile music is seen as a more lucrative source of income. Universal Music, which declined to renew its long-term deal with Apple, has partnered with Nokia to give phone users unlimited downloads from a catalogue of millions of tracks. The big labels want to generate new income streams from songs streamed on websites such as MySpace and YouTube.

Amy Winehouse’s Back To Black, although released in 2006, was last year’s biggest selling album, racking up two million sales, followed by the debut album by Lewis.

A BPI spokesman said: “Recent years have seen a boost in download sales in the week after Christmas, but this was a larger increase than expected, and sales should continue to grow throughout 2008.

“The enormous choice of music and great value for money, combined with the ease and convenience of downloading, means legal digital music services are becoming increasingly popular with music fans.”

Explore Industry Sectors

• Banking & Finance

• Construction & Property

• Consumer Goods

• Engineering

• Health

• Industrials

• Leisure

• Media

• Natural Resources

• Retailing

• Support Services

• Technology

• Telecoms

• Transport

• Utilities

Times Recommends

• BA chief waives bonus after T5 fiasco
• Prospects of cheaper loans hit as Libor soars
• Rice price dives as US and Japan set to unlock grain pact