Classmates.com 2010 Annual Report Download - page 11

Table of Contents
large networks of floral network members provide an order fulfillment vehicle for our consumer business and allows FTD to offer same-day
delivery capability (subject to certain limitations) to populations throughout the U.S., Canada, the U.K., and the Republic of Ireland.
Additionally, FTD is part of a large international network of floral retailers that enables FTD to market consumer products for delivery in more
than 150 countries.
FTD products and services available to floral network members include: access to the FTD and Interflora brands and the Mercury Man
logo, supported by various marketing campaigns; access to the floral networks; credit card processing services; e-commerce website services;
online advertising tools; and telephone answering, order taking, order transmission, and clearing-house services. FTD also provides point-of-
sale
and related technology services and systems that enable its floral network members to transmit and receive orders and manage several back
office functions of a floral retailer's business, including accounting, customer relationship management, direct marketing campaigns, and
delivery route management. FTD also acts as a national wholesaler to its floral network members, providing branded and non-branded hard
goods and cut flowers as well as packaging, promotional products and a wide variety of other floral-related supplies. Wholesaling vases and
other hard goods to floral network members helps to ensure consistency between the consumer orders fulfilled by floral network members and
the product imagery displayed on the FTD and Interflora websites.
Content & Media
Our Content & Media services include online nostalgia services under the Memory Lane, Classmates, StayFriends, and Trombi brands. Our
Content & Media services also include online loyalty marketing under the MyPoints brand. For additional information regarding our Content &
Media segment, see Note 2—"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.
Online Nostalgia Services
We have historically operated our nostalgia services as a platform to enable users to locate and interact with acquaintances from their past,
with high school affiliations as the primary focus. Led by our Classmates.com website that serves the U.S. and Canada, our nostalgia services
comprise a large and diverse population of users, with over 60 million registered accounts at December 31, 2010.
Over the years, Classmates members have contributed a substantial amount of distinct, relevant pieces of user-generated content, such as
names, high school affiliations, biographies, interests, and photos. We believe our large membership base and the user-generated content posted
on the Classmates section of the newly-branded Memory Lane website assist us in attracting new members and bringing existing members back
to the website on a recurring basis. Until mid-2010, we pursued a strategy of primarily obtaining and featuring user-generated content on the
Classmates website.
During 2010, partially in response to changing industry dynamics, we began the process of evolving the Classmates.com website to
significantly broaden our focus on nostalgia. We now feature nostalgic content including digitized versions of high school yearbooks,
photographic images, premium video content, historic newsreels, vintage music samples, classic movie trailers, and iconic magazines. Visitors to
the website now can engage with a significantly broader range of available content, which can facilitate new forms of social interaction, such as
sharing memorable content with friends and acquaintances or posting comments on the website after viewing the nostalgic content.
In February 2011, we re-branded the Classmates website as Memory Lane to reflect the significant broadening of the website's value
proposition to increasingly feature nostalgic content. Our objective is to create the premier U.S. online website for accessing, acquiring,
interacting, and sharing nostalgic content, supported by ongoing efforts to augment the existing content and to add new forms of nostalgic
content and social interaction features to the website. We plan to add newspaper archives,
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