Classmates.com 2010 Annual Report Download - page 12

Table of Contents
exclusive video content and classic television commercials, among other forms of new content, to the website.
Our intent is to leverage our large base of registered consumers age 35 and over who joined Classmates to reconnect with important
memories from their past, by offering these and other consumers a broader value proposition. The historical features of the Classmates service
remain available within a dedicated Classmates section of the new Memory Lane website. In addition, concurrent with the website's rebranding
to Memory Lane, pay accounts of the historical Classmates website received access to new premium features, such as viewing high school
yearbooks, at no additional cost.
The first category of nostalgic content added to the website in June 2010 was the high school yearbook. As of December 31, 2010, we had
approximately 60,000 digitized high school yearbooks available on the Memory Lane website, representing the largest collection available
anywhere on the Internet. During 2011, we intend to both increase the number of yearbooks on the website as well as enhance the functionality
of our digital yearbooks, including adding search and other features to facilitate engagement and sharing of yearbook content. All visitors to the
website currently may view the first several pages of each yearbook for free, but are required to purchase an All-
Access Pass to view, in full size,
the entire yearbook on the website.
The nostalgic content on the Memory Lane website is chronicled using navigation features that are intended to drive engagement and
exploration. Website visitors simply choose any individual year or decade from the 1940s through the 1990s to relive the sights, sounds and
memories of that time period. After choosing the desired time period, visitors can select from various categories of nostalgic content including
movies, music, television, headlines, sports, lifestyle, magazines, videos, and yearbooks. Visitors can also search for a specific type of nostalgic
content, such as a popular recording artist or historical event, through a search toolbar on the website.
Visitors to the Memory Lane website can purchase a broad range of nostalgic products that are primarily made available through third
parties. Content currently marketed on Memory Lane and available for purchase from third-party websites includes music, movies, posters, and
reprints of high school yearbooks.
Business Model
Domestic. While visitors to the Memory Lane website can experience a substantial amount of nostalgic content free of charge, accessing
certain types or amounts of content and using certain features requires them to register for membership and purchase an All-Access Pass that is
available for terms ranging from one day to two years. Revenues from our Memory Lane website are derived primarily from the sale of All-
Access Passes and, to a lesser extent, from advertising fees and other transactions on our website.
All-Access Pass holders have access to a variety of premium features. We expect the features available to free users and All-Access Pass
holders to continue to change from time to time. Premium features currently include, among others:
• Unlimited viewing of the largest online collection of digitized high school yearbooks.
•
Unlimited viewing of premium video content that includes video newsreels from the 1940s through the 1960s and vintage sports
videos covering U.S. professional and college sports from the 1940s through the 1990s.
• Unlimited viewing of iconic magazines.
• Access to our Classmates® Guestbook, which alerts members when another member visits his or her Classmates profile, unless
the visiting member makes the profile selection not to leave his or
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