Washington - U.S. CD sales were down 13%, and CD shipments to retailers down 12.8% in 2006, while sales of digital albums doubled and overall digital music sales increased 74.4%, according to figures published by the Recording Industry Association of America (RIAA).

Digital song downloads were up 60% over 2005, to 586 million; the 28 million digital albums sold represented an increase of 103%.

Revenues from mobile formats like ringtones grew 84%, to $775 million, while subscription service revenues were up 38% last year to $206 million.

However, the growth in digital revenues only partially compensated for the decline in physical sales.

"Today's music marketplace has challenges but it also offers reason for hope and optimism," said RIAA chairman and CEO Mitch Bainwol.

"The appetite for music is as strong as ever and a digital marketplace now worth nearly $2 billion has emerged virtually overnight."

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