JupiterResearch Merges With Kagan as Jupitermedia Shifts to Imaging

Share this article:
Jupitermedia Corp., New York, continued its increasing focus on the digital imaging market yesterday as it shed its JupiterResearch division.


JupiterResearch and Kagan Research LLC, Monterey, CA, which focuses on media business research, merged to form JupiterKagan Inc. And JupiterKagan, a portfolio company of MCG Capital Corp., acquired the JupiterResearch division for $10.1 million in cash.


Jupitermedia started shedding its non-imaging businesses last August, when it sold the ClickZ.com Network, which includes SearchEngineWatch.com and the Search Engine Strategies trade shows, to Incisive Media.


Instead, it is focusing on its rapidly growing Jupiterimages division, which specializes in selling commercial images. It has one other division, JupiterWeb, which operates four online networks including Internet.com and Graphics.com.


The imaging division makes up 80 percent of the company's revenue, said Aaron Kessler, an analyst with Piper Jaffrey Co., New York. In comparison, JupiterResearch made up only 8 percent of Jupitermedia's earnings in 2005.


For 2006, Jupitermedia projects $125 million in revenue for Jupiterimages and $33 million in revenue for JupiterWeb.


Jupitermedia chairman/CEO Alan Meckler told DM News that the company plans more acquisitions in the digital assets industry.


"It's an emphasis on images, but we have also made acquisitions in royalty-free music," he said. "We're a digital asset company, where we can sell a variety of assets to media companies."


Jupiterimages acquired VA Software Corp.'s Animation Factory Inc. in December, and last July it picked up PictureArts Corp. Acquisitions this year likely will be smaller firms, Kessler said, to help Jupitermedia "build its portfolio of images into its distribution capabilities."


Already, Jupiterimages' divisions, including AbleStock.com, Animation Factory and BigShot Media, are benefiting from promoting across divisions, Meckler said.


"We probably have well over a million customers who have purchased either animations or images or clip art or Flash movies. We cross-promote where appropriate," he said.


For example, Jupiterimages immediately promoted its FlashFoundry.com royalty-free Flash content service to Animation Factory subscribers earlier this year, soon after acquiring the Animation Factory.


"We brought in thousands of dollars of new subscribers," Meckler said.


Christine Blank covers online marketing and advertising, including e-mail marketing and paid search, for DM News and DMNews.com. To keep up with the latest developments in these areas, subscribe to our daily and weekly e-mail newsletters by visiting www.dmnews.com/newsletters


Share this article:
You must be a registered member of Direct Marketing News to post a comment.
close

Next Article in Digital Marketing

Follow us on Twitter @dmnews

Latest Jobs:

Featured Listings

More in Digital Marketing

Hallmark Takes Baby Steps to a New Brand

Hallmark Takes Baby Steps to a New Brand

The company relied on digital to get its growing children's apparel brand off of the ground.

One Third of Americans' Social Media Time Is Spent on Facebook

One Third of Americans' Social Media Time Is ...

Pandora, meanwhile, attracts more user time but far fewer digital advertisng dollars, says a study.

News Corp. Chief Brands Google an 'Unaccountable Bureaucracy'

News Corp. Chief Brands Google an 'Unaccountable Bureaucracy'

Robert Thomson warns the EU that an antitrust deal with Google will lead to a decrease in competitive options for marketers and an increase in piracy.

Copyright © 2014 Haymarket Media, Inc. All Rights Reserved
This material may not be published, broadcast, rewritten or redistributed in any form without prior authorization.
Your use of this website constitutes acceptance of Haymarket Media's Privacy Policy and Terms & Conditions.