Despite downloads increasing, Australian CD sales remain strong / AAP Source: AAP

The 2010 ARIA sales report showed we bought about 23.5 million CD records last year but only 3.3 million digital "bundles", as the long form is known online.

Digital downloads rose by 30 per cent, with singles leading the way after most major record labels stopped producing the CD version last year.

But the growth in downloads wasn't enough to offset the general decline in legal music sales and the effects of piracy.

The Australian music industry made $384 million in sales of CDs, downloads, ringtones and even vinyl last year - down almost 14 per cent.

Some pundits suggest the sluggish sales weren't entirely the fault of file-sharing but fewer quality blockbuster album releases to excite fans in 2010.

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Pink's greatest hits was the biggest seller with Susan Boyle's debut record I Dreamed A Dream and the sequel The Gift figuring in the top 10 alongside new albums from Eminem, Angus and Julia Stone and Mumford and Sons.

But ARIA CEO Dan Rosen said the industry may recoup some of the lost ground this year thanks to a slate of "stellar new releases".

Locals including Delta Goodrem, The Living End, The Presets, Pete Murray, The Sleepy Jackson and maybe Silverchair will drop new records by the end of the year, while Powderfinger will shift hundreds of thousands of a greatest hits package.

They face stiff competition for the entertainment dollar from international superstars who are also planning to release new material in 2011.

Albums from Foo Fighters, The Strokes, U2, Lady Gaga, Beyonce, Green Day, Coldplay, Beastie Boys, Britney Spears, Radiohead and the heavyweight collaboration between Jay-Z and Kanye West are all due out this year.

ARIA will redouble its efforts to pressure the Federal Government and internet service providers to target file-sharing sites and stem the piracy flood.

But some insiders see it as a battle already lost and want to woo consumers to subscription models and cloud streaming which would charge them a monthly fee to play as much music as they wanted.

"Australians are consuming more music than ever," Mr Rosen said.

"Our goal as an industry is to make it easier for people to support the artists they love by embracing innovation and supporting new ways to sell music."

Format luddites will be disappointed to note the sales report reveals only three cassette albums worth a total of $13 were sold last year.