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JUPITERRESEARCH FORECASTS EUROPEAN DIGITAL MUSIC SALES WILL REACH €836 MILLION IN 2009, BUT WON'T REPLACE CDS

Digital music to represent 8% of total European market by 2009

(London, U.K. - 27 September 2004) -- "European Digital Music: Identifying Opportunity" published today by JupiterResearch, a division of Jupitermedia Corporation (Nasdaq: JUPM) reveals that while the launch of new online music stores and services has jump started Europe's digital music market, the CD will remain the bedrock of music sales. By 2009, JupiterResearch forecasts that digital music revenues will grow to 836 million from €10.6 million at the end of 2003, representing 8% of the total music market, and will be a significant alternate distribution channel.

The JupiterResearch report is one of the most extensive undertaken in Europe, integrating in-depth interviews with leading executives in key areas of online music with proprietary consumer survey data on current music purchasing and future intentions. The report highlights a quadrupling in digital music revenues, from €10.6 million in 2003 to €46.3 million at the end of 2004, driven largely by new market entrants such as Apple's iTunes Music Store and Napster, and by sales of digital music devices such as the iPod. However, despite the improved consumer choice these services bring, catalogue availability and prices remain inconsistent whilst incompatible audio formats add further confusion. In an extensive survey of music industry executives fielded by JupiterResearch, three quarters believed that interoperability of audio formats and digital rights management would aid consumer adoption.

Interoperability is key because Europe's digital music landscape will not be dominated by any single player in the long term. A range of stores and services will evolve, optimised around distinct consumer segments, countries and suppliers. Although the more technologically sophisticated Nordic markets will experience the highest rates of channel shift, the U.K. will dominate Europe's digital music market by 2009 with revenues of €248 million, accounting for 30% of the European total.

"Although Europe's digital music market has finally begun to take off after a sluggish start, it will remain a relatively niche market, considering the total European music market in 2009 will be €10.2 billion. Even with the success of the new services, digital music spending will make up less than a half of a percent of Europe's total music market at the end of 2004," stated Mark Mulligan, Research Director at JupiterResearch. "In the context of successive years of declining music sales, digital music distribution will be an important alternative revenue channel for the music industry but it is not about to replace the CD," added Mulligan.

On the market opportunity for established music content providers and emerging new players, Mulligan concludes, "Current business models define digital distribution as a low-margin business. Companies with ulterior revenue streams (e.g., selling devices or broadband access) will be best placed to succeed, and will often market loss leading digital products short term for gains over time."

The complete findings of this report are immediately available to JupiterResearch clients online. For more information on the report contact Tim Stevens, Senior Sales Manager, JupiterResearch at +44 (0) 774 332 7477 or [email protected]. For more information on JupiterResearch's European research services please visit www.jupiterresearch.com.

About Jupitermedia Corporation
Jupitermedia Corporation (Nasdaq: JUPM), (www.jupitermedia.com), headquartered in Darien, CT, is a leading global provider of original information, images, research and events for information technology, business and creative professionals. JupiterWeb, the online division of Jupitermedia, operates four distinct online networks: internet.com and EarthWeb.com for IT and business professionals; DevX.com for developers; and ClickZ.com for interactive marketers. JupiterWeb properties include more than 150 Web sites and over 150 e-mail newsletters that are viewed by approximately 20 million users and generate approximately 300 million page views monthly. Jupitermedia also includes: JupiterImages, one of the leading images companies in the world with over 3.5 million images online serving creative professionals with products like Comstock Images, Thinkstock Images, Photos.com and ClipArt.com; JupiterResearch, a leading international research advisory organization specializing in business and technology market research in 18 business areas and 14 vertical markets; and JupiterEvents, which produces offline conferences and trade shows focused on IT and business-specific topics, including Search Engine Strategies and Wi-Fi Planet.

"Safe Harbor" Statement under the Private Securities Litigation Reform Act of 1995: Statements in this press release which are not historical facts are "forward-looking statements" that are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements involve risks and uncertainties that could cause actual results to differ materially from those described in the forward-looking statements. The potential risks and uncertainties address a variety of subjects including, for example, the competitive environment in which Jupitermedia competes; the unpredictability of Jupitermedia's future revenues, expenses, cash flows and stock price; Jupitermedia's ability to integrate acquired businesses, products and personnel into its existing businesses; Jupitermedia's dependence on a limited number of advertisers; and Jupitermedia's ability to protect its intellectual property. For a more detailed discussion of such risks and uncertainties, refer to Jupitermedia's reports filed with the Securities and Exchange Commission pursuant to the Securities Act of 1933 and the Securities Exchange Act of 1934. The forward-looking statements included herein are made as of the date of this press release, and Jupitermedia assumes no obligation to update the forward-looking statements after the date hereof.

All current Jupiter Research press releases can be found online at www.jupitermedia.com/corporate/press.html.

All current Jupitermedia Corporation press releases can be found on the World Wide Web at http://www.jupitermedia.com/corporate/press.html.

Jupiter Research's European Offices:
U.K.
Gainsborough House, 81 Oxford Street
London W1D 2EU
Tel: +44 (0) 207 903 5020
Fax: +44 (0) 207 903 5021