On-demand services like Spotify and We7 will generate £696m for the global music industry in 2012 - a rise of 40%, new research has suggested.
It means streaming music is the fastest-growing sector of the industry, overtaking downloads, which are due to see an increase of 8.5% this year.
CDs and vinyl still dominate the industry, accounting for 61% of all music sold worldwide.
But sales of physical products dropped by 12% globally, and 30% in the UK.
Last updated by Melodic Revolution Records Aug 23, 2012.