European Music Industry Faces a Demographic Time Bomb Warns JupiterResearch

The JupiterResearch report reveals that European consumers whodownload music from illegal file sharing networks currently outnumberthose downloading from legal services such as Apple's iTunes MusicStore by a factor of three to one: 15% file share while just 5% pay todownload. There is solid demand for paid downloads, however, 10% ofEuropean consumers are willing to pay, rising as high as 31% inSweden.

File sharing penetration in Europe is highest among youngerconsumers (34% of 15-24 year olds) and is impacting the way they valuemusic with many having little concept of music as a paid commodity.Among the 46% of European online 15-24 year olds who use the Internetto consume music, the CD is becoming increasingly irrelevant: 40% donot consider the CD to be a good value for money and 43% prefer tocopy rather than buy CDs. Unless these consumers are encouraged todevelop music purchasing behavior soon they may never developmeaningful music buying habits.

"Illegal activity is a key threat. The Digital Youth of today arebeing brought up on a near limitless diet of free and disposable musicfrom file sharing networks. When these consumers age and increasespending power they should become key music buying consumers," statedMark Mulligan, Analyst at JupiterResearch. "But unless the musicindustry can transition these consumers whilst they are young awayfrom free consumption to paid music formats, be they digital or CDs,they may never develop music purchasing behavior and the recordingindustry could suffer long-term harm," added Mulligan.

The complete findings of this report are immediately available toJupiterResearch clients online. For more information on the report orJupiterResearch's Music research service please contact Kieran Kelly,Vice President of Global Sales and Client Service at 1-800-481-1212 orresearchsales@jupitermedia.com.

About Jupitermedia Corporation

Jupitermedia Corporation (Nasdaq: JUPM), (www.jupitermedia.com)headquartered in Darien, CT, is a leading global provider of originalinformation, images and research for information technology, businessand creative professionals. Jupitermedia includes JupiterImages, oneof the leading images companies in the world with over 7.0 millionimages online serving creative professionals with brands likeBananaStock, Brand X, FoodPix, Botanica, Nonstock, Comstock Images,Creatas Images, PictureQuest, Liquid Library, Thinkstock Images,Thinkstock Footage, Goodshoot, ITStockFree, Photos.com, Ablestock.com,PhotoObjects.net, Clipart.com and Animations.com; and JupiterWeb, theonline media division of Jupitermedia which operates four distinctonline networks: internet.com and EarthWeb.com for IT and businessprofessionals; DevX.com for developers; and Graphics.com for creativeprofessionals. JupiterWeb properties include more than 150 Web sitesand over 150 e-mail newsletters that are viewed by nearly 20 millionusers and generate over 300 million page views monthly. Jupitermediaalso includes: JupiterResearch, a leading international researchadvisory organization specializing in business and technology marketresearch in 18 business areas and 14 vertical markets.

"Safe Harbor" Statement under the Private Securities LitigationReform Act of 1995: Statements in this press release which are nothistorical facts are "forward-looking statements" that are madepursuant to the safe harbor provisions of the Private SecuritiesLitigation Reform Act of 1995. Such forward-looking statements involverisks and uncertainties that could cause actual results to differmaterially from those described in the forward-looking statements. Thepotential risks and uncertainties address a variety of subjectsincluding, for example, the competitive environment in whichJupitermedia competes; the unpredictability of Jupitermedia's futurerevenues, expenses, cash flows and stock price; Jupitermedia's abilityto integrate acquired businesses, products and personnel into itsexisting businesses; Jupitermedia's ability to protect itsintellectual property; and Jupitermedia's dependence on a limitednumber of advertisers. For a more detailed discussion of such risksand uncertainties, refer to Jupitermedia's reports filed with theSecurities and Exchange Commission pursuant to the Securities ExchangeAct of 1934. The forward-looking statements included herein are madeas of the date of this press release, and Jupitermedia assumes noobligation to update the forward-looking statements after the datehereof.

All current JupiterResearch press releases can be found on theWorld Wide Web athttp://www.jupiterresearch.com/bin/item.pl/press:releases/

All current Jupitermedia Corporation press releases can be foundon the World Wide Web athttp://www.jupitermedia.com/corporate/press.html