According to a report from the Official Charts Company, at least 3.7 billion songs were streamed in 2012 from sites such as Spotify, Deezer and We7.
This figure is up 40 per cent on the previous year and is equivalent to the total number of singles sold in the UK over the past 60 years.
There was growth in the digital retail market for music downloads, as it increased by 7.7 per cent last year. Similarly, video games sales on digital were up 15.1 per cent.
The figures come as rumours continue to circulate that YouTube and Apple are both preparing to launch a music streaming service later this year.