NetZero 2011 Annual Report Download - page 58

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Table of Contents
Communications
We do not currently generate products revenues from our Communications segment.
Services Revenues
FTD
FTD services revenues consist of fees charged to its floral network members for access to the FTD and Interflora brands and the Mercury
Man logo; access to the floral networks; credit card processing services; e-commerce website services; online advertising tools; and clearing-
house services, order transmission, and after-hours telephone answering and order taking services.
Content & Media and Communications
Content & Media services revenues primarily consist of amounts charged to pay accounts for online nostalgia services. Communications
services revenues consist of amounts charged to pay accounts for Internet access, email, web hosting, Internet security, and other services, with
substantially all of such revenues associated with Internet access. Our Content & Media and Communications services revenues are primarily
dependent on two factors: the average number of pay accounts for a period and ARPU. In general, we charge our pay accounts in advance of
providing a service, which results in the deferral of services revenue to the period in which the services are provided. Communications services
revenues also include revenues generated from the resale of telecommunications to third parties.
Advertising Revenues
We provide advertising opportunities to marketers with both brand and direct response objectives through a full suite of display, search,
email, and text-link opportunities across our various properties and the Internet. We also offer audience-based media solutions, targeting
technologies, website sponsorships and website integrations in order to provide effective solutions.
FTD
FTD generates advertising revenues primarily from inclusion of advertisements on emails to consumers, for which revenue is recognized
when the advertisement is run, and from referrals of customers to third-party websites and services, for which revenue is recognized when the
related performance criteria is met. Previously, FTD's advertising revenues were primarily from post-transaction sales generated when FTD and
Interflora consumers were presented with third-party offers immediately after completing a purchase on the www.ftd.com and
www.interflora.co.uk websites. FTD terminated its domestic post-transaction sales agreement in January 2010 and its international post-
transaction sales agreement in January 2011.
Content & Media
Our online nostalgia services generate advertising revenues primarily from display advertisements on our websites. Advertising inventory
on our online nostalgia websites includes text and graphic placements on the user home page, profile page, class list page, and most other pages
on our websites.
Our online loyalty marketing service revenues are derived from advertising fees, consisting primarily of fees based on performance
measures, that are generated when emails are transmitted to members, when members respond to emails, when members complete online
transactions, and when members engage in a variety of other online activities, including, but not limited to, games, Internet searches and market
research surveys.
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