Job #1 is to stop the bleeding. A new Jupiter report predicts in 2010 European digital music revenues will offset declines in CD sales.

Jupiter analyst Mark Mulligan posted about the report today at his blog.

"The key finding is that although European spending will total €2 billion by 2012 revenues will not fully Compensate for Declining CD Sales Until 2010, and even then mobile digital revenues will be partially responsible for the turn around. The cold reality is that 2007 was a record year of revenue decline for the overall European music market and that although digital revenues experienced a record high of €401.2 million they represented just 13 percent of the drop in CD sales."

And he commented on (all too) recent strategies to apply pressure to those gaping wounds.

"iTunes is not the be all and end all of digital music. Less than 10 percent of European Internet users currently buy online. This is why the labels are beginning to pursue more adventurous (and risky) licensing strategies with initiatives such as Nokia’s ‘Comes With Music’ with Universal Music. This brave new approach by the major labels will help free digital music from its chains and will be as important to the future of digital music as the longer term drivers, such as MP3 player adoption and consumer awareness."

paidContent has a blurb on the report.