Sales of songs legally downloaded from the web have leapt massively, with over 200 million tracks being bought online in the US, UK and Germany in 2004.
The number of tunes bought on the internet over the last 12 months has increased by ten times, giving digital music sales a huge boost.
Experts say the increase in portable music players like the Apple iPod, could be behind the huge jump in sales.
A million songs are now available to buy on legal download websites.
In 2004 around 25 million portable players were sold and ten million of those were Apple iPods.
International Federation of the Phonographic Industry (IFPI) boss John Kennedy reckons that in 2005 mobile phones with the ability to store loads of tracks could take over as the top portable music players.
Some experts think that by 2010 as much as 25 per cent of record company cash could come from digital sales.