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Error: Invalid or unsupported picture format. Picture not inserted

Error Message

Upon inserting a JPEG2000 image file into ArcMap, the following error message displays:

"Invalid or unsupported picture format. Picture not inserted."

Cause

JPEG2000 is not a supported format for ArcMap Insert picture.

Solution or Workaround

Convert the JPEG2000 file to a supported format when selecting 'Insert Picture'. For example, use IrfanView to convert a JPEG2000 file to any of the supported formats. The following formats are supported:

JPEG (*.jpg)
GIF, (*.gif)
TIFF (*.tif)
Windows Enhanced Metafile (*.emf) Windows Bitmap (*.bmp)
PNG (*.png)