Classmates.com 2008 Annual Report Download - page 15

Table of Contents
Communications
Our principal Communications pay services are dial-up Internet access and email primarily under the NetZero and Juno brands. We also
offer broadband services, Internet security services, Web hosting services and premium email. In total, we had 1.7 million Communications pay
accounts at December 31, 2008, of which 1.3 million were dial-up Internet access accounts. Most of our Communications revenues are derived
from dial-up Internet access accounts. For additional information regarding our Communications segment, see Note 3—"Segment Information"
of the Notes to the Consolidated Financial Statements, which appears in Part II, Item 8 of this Annual Report on Form 10-K.
Internet Access Services
Our Internet access services consist of dial-up and, to a much lesser extent, broadband services.
Our dial-up Internet access services are provided on both a free and pay basis, with the free services subject to hourly and other limitations.
Basic pay dial-up Internet access services include Internet access and an email account, although we also offer an enhanced email service as a
stand-alone pay service. In addition, we offer accelerated dial-
up Internet access services which can significantly reduce the time for certain Web
pages to download when compared to our basic dial-up Internet access services. Our accelerated dial-
up Internet access services are also bundled
with additional benefits including pop-up blocking, antivirus software and enhanced email storage. Our dial-up Internet access services are
available in more than 11,000 cities across the U.S. and Canada. In general, monthly pricing for our dial-up Internet access services generally
ranges from $9.95 for basic services to $14.95 for our bundled services.
Our broadband Internet access services consist of DSL services that we purchase from third-parties and resell under our own brands. These
services are primarily used as a means to retain users who are leaving our dial-up services and we have not marketed our broadband services to
the general public. We have experienced limited adoption of our broadband services and these services have not been profitable. In general,
monthly pricing for our broadband Internet access services ranges from $12.95 to $34.95, although we anticipate that our pricing may change
and fluctuate based on connection speed and geographic region.
Our primary strategy for the Communications segment is to manage our dial-up business for profitability and cash flows. In certain
instances, we seek to extend the business life cycle and cash flows generated by our dial-up Internet access subscribers by offering them a
broadband alternative to their dial-up service.
Sources of Revenue
We generate revenue from the sale of products, services and online advertising.
Products Revenues
Products revenues consist of the FTD segment's merchandise revenue and related shipping and service fees for consumer orders, as well as
revenues generated from the sale of containers, software and hardware systems, cut flowers, packaging and promotional products and a wide
variety of other floral-related supplies to florist members. We do not generate products revenues from our Classmates Media segment or our
Communications segment.
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