Meanwhile, an actor's daughter became the industry's new darling, while a hotel heiress found her albums defaced.
Here are some of the highlights - or lowlights - of 2006 in music.
TAKE THAT MAKE THEIR COMEBACK
Take That's return saw Gary Barlow, Jason Orange, Howard Donald and Mark Owen back in the limelight with a comeback tour and new album.
But Robbie Williams elected not to join the party - a hologram of him took his place on tour.
By December the older, wiser foursome topped both the single and album charts for the first time in their career. "It's like a fairytale," Barlow cooed.
All Saints also made a comeback as a mini-1990s revival took place.
First chart double for Take That
THE RISE OF LILY ALLEN
Lily Allen stepped out from actor father Keith's shadow in 2006 with her single Smile becoming one of the soundtracks to the summer.
Her debut album Alright, Still - full of perky, witty songs about London life - picked up the first of what looks likely to be many awards when she was honoured at the Digital Music Awards.
But behind her sing-song voice, the 21-year-old was not afraid of sharing her forthright views on fellow stars.
"They look like lap dancers as far as I'm concerned," she said of the Pussycat Dolls.
Women top list of music's coolest
FAREWELL SMASH HITS AND TOP OF THE POPS
Over 25? Think you're still in touch with the kids? 2006 saw two closures which reminded us the music industry simply is not what it was.
In February, Smash Hits magazine closed - leaving thirtysomethings crying into their Black Type tea towels.
Then the BBC finally took Top of the Pops off life support, after a year spent withering away on BBC Two.
Aged DJs and tapes of 70s dancers were wheeled out - reminding younger viewers just why the show had been axed.
Fans say goodbye to Top of the Pops
ARCTIC MONKEYS BECOME WESTMINSTER DARLINGS
The rise of the Arctic Monkeys gave hope for anyone who wants to see the young and talented rise to the top.
But the sight of politicians falling over themselves to namecheck the publicity-shy Sheffield four-piece was a less impressive sight.
Whatever People Say I Am, That's What I'm Not was the fastest-selling debut album in UK chart history, and scooped the Mercury Prize.
But don't expect to hear them crowing about their success any time soon.
Politicians' monkey business
PETE DOHERTY'S COURTROOM SAGAS
Pete Doherty's music did not provide the soundtrack to 2006 - but his troubles with the law certainly provided the background noise.
The Babyshambles frontman was a regular visitor to London's Thames Magistrates Court as he wrestled with the consequences of his drug addiction.
His on-off relationship with model Kate Moss also kept him in the public eye.
Doherty's band of fans will be hoping 2007 is the year he is able to let his music do his talking for him again.
Doherty voted leading 'anti-icon'
SANDI THOM'S BASEMENT BONANZA
From webcasting gigs from a south London basement to a number one album in four months - it was a good 2006 for singer-songwriter Sandi Thom.
But critics cried foul - suggesting she wasn't the "struggling musician" she had been portrayed as when she was performing at home in Tooting.
Her record company boss backed the 25-year-old up, calling her "a great artist, which is why RCA signed her".
Thom called the criticism "saddening" - but it didn't dent her popularity.
Talking Shop: Sandi Thom
THE YEAR OF MYSPACE
Lily Allen used it. The Arctic Monkeys denied using it. And if you were a musician who didn't use it in 2005, then you almost certainly did in 2006.
MySpace's domination of music was sealed in 2006, with acts of all sizes using the Rupert Murdoch-owned social networking website to showcase their material.
Or - if you're Lily Allen - using it to take a pop at other acts.
But it is now being sued by Universal for copyright infringement. Can music's love affair with MySpace go on?
MySpace sued by Universal Music
THE YEAR'S TOP WANNABES
The also-rans from 2006's music scene included socialite Paris Hilton, whose Stars Are Blind was a number five hit.
But her album Paris fared less well, peaking at number 29, with 500 copies doctored by art prankster Banksy, who depicted her with a dog's head.
Peter Andre's brief revival of fortunes was long forgotten, but an out-of-tune clip purporting to be of him and wife Katie Price became an internet cult.
The pair released an album, A Whole New World, which made its debut at No 20.
Paris Hilton targeted in CD prank
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