Atlantic Records has become the first major record label to surpass CD sales by their overwhelming digital sales.

According to the New York Times, the record label responsible for rap stars like T.I., Diddy, Missy Elliot and Gnarls Barkley claims over half of their music profits stem from iTunes downloads, ring tones and other digital products.

"We're like a college basketball team on an 18-2 run," Atlantic Chairman Craig Kallman told Times.

Atlantic President Julie Greenwald admits its the company's ability to decipher today's consumer needs and available outlets to get music out.

"I think we've figured it out," Greenwald told Times. "It used to be that you could connect five dots and sell a million records. Now there are 20 dots you can connect to sell a million records."

Atlantic's success comes months after record breaking ring tone sales from their artists including Flo Rida "Get Low" and Lupe Fiasco's popular "Superstar." Despite these achievements, industry analysts are still skeptical to how much help digital sales will offer as the music industry continues to slump as a whole.

"It's not at all clear that digital economics can make up for the drop in physical," former EMI executive John Rose told Times. "The real question is how does the record industry change its rights structure so it captures a fairer percent of the value it creates in funding, marketing and managing the launch the artists."

Impressive sales like Tip's new platinum-selling album Paper Trail have helped Atlantic earn one of the highest digital revenue percentages within the record industry.

Atlantic Records has become the first major record label to surpass CD sales by their overwhelming digital sales.

According to the New York Times, the record label responsible for rap stars like T.I., Diddy, Missy Elliot and Gnarls Barkley claims over half of their music profits stem from iTunes downloads, ring tones and other digital products.

"We're like a college basketball team on an 18-2 run," Atlantic Chairman Craig Kallman told Times.

Atlantic President Julie Greenwald admits its the company's ability to decipher today's consumer needs and available outlets to get music out.

"I think we've figured it out," Greenwald told Times. "It used to be that you could connect five dots and sell a million records. Now there are 20 dots you can connect to sell a million records."

Atlantic's success comes months after record breaking ring tone sales from their artists including Flo Rida "Get Low" and Lupe Fiasco's popular "Superstar." Despite these achievements, industry analysts are still skeptical to how much help digital sales will offer as the music industry continues to slump as a whole.

"It's not at all clear that digital economics can make up for the drop in physical," former EMI executive John Rose told Times. "The real question is how does the record industry change its rights structure so it captures a fairer percent of the value it creates in funding, marketing and managing the launch the artists."

Impressive sales like Tip's new platinum-selling album Paper Trail have helped Atlantic earn one of the highest digital revenue percentages within the record industry.