"Since then downloads have come to dominate the top 40.
About 98% of all single sales are now from downloads, with about 100,000 needed every week to get to the top spot."
Using open source software was about "better and more effective government".
He criticised government IT procurement for lacking "open standards" and making it difficult for small companies to get the contracts.
"All too often a government IT system is incompatible with other types of software, which stifles competition and hampers innovation.
"Looking at the litany of IT projects that have collapsed or spiralled over budget, it's clear too that this has meant billions of pounds wasted and public service reform being hampered," Mr Osborne said.
"The government's approach needs to be overhauled."
"But what's missing from the whole debate is some data. Just how much unlawful file-sharing is going on in the UK and what effect is it having on the creative industries? It's hard to be sure really - the music industry often says that twenty unauthorised tracks are downloaded for every one that's paid for, but I'm not sure how that figure was worked out. The government, too, seems hazy, unable to say how it will know when file-sharing has been reduced by 70%, the target to be attained by the initial deterrence campaign before stronger measures are contemplated."
NRK, Norway's public broadcaster, has decided that its BitTorrent distribution experiment has gone so well that the company will launch its own tracker in order to distribute its programming. Norway's commitment to openness means that the files are DRM-free and even available for fansubbing.