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Table of Contents
FTD Restructuring and Other Exit Costs
FTD restructuring and other exit costs for the year ended December 31, 2011 totaled $0.9 million and were associated with reductions in
headcount. Restructuring and other exit costs for the year ended December 31, 2010 totaled $1.6 million and primarily related to the closure of
certain call center facilities in the U.S. and the U.K.
Content & Media Segment Results
Content & Media Revenues
The decrease in Content & Media services revenues was a result of a 15% decrease in our average number of pay accounts for the year
ended December 31, 2011 compared to the year ended December 31, 2010, partially offset by a 9% increase in ARPU. The increase in ARPU
was primarily attributable to an overall decrease in the percentage of pay accounts on discounted plans and a higher percentage of domestic pay
accounts on shorter-term subscription plans, which have higher ARPUs. In addition, Content & Media advertising revenues decreased due to a
decrease in segment active accounts and a decrease in available inventory on the Classmates website as well as a decrease in advertising
revenues generated by our online loyalty marketing service due to a number of factors, including the loss of a major customer. These decreases
were partially offset by $0.9 million in products revenues generated in the year ended December 31, 2011. We anticipate that Content & Media
pay accounts and revenues will continue to decline.
Content & Media Cost of Revenues
The decrease in Content & Media cost of revenues was primarily due to a $1.6 million decrease in personnel- and overhead-
related costs, an
$0.8 million decrease in bank fees and a $0.5 million decrease in the cost of points earned by members of our online loyalty marketing service.
64
Year Ended
December 31, Change
2011 2010 $ %
(in thousands, except percentages)
FTD restructuring and other exit costs
$
876
$
1,574
$
(698
)
(44
)%
Year Ended December 31, Change
2011
2010
$
%
(in thousands, except percentages and ARPU)
$
864
$
—
$
864
N/A
Services
123,992
134,055
(10,063
)
(8
)%
Advertising
60,619
67,589
(6,970
)
(10
)%
Total Content & Media Revenues
$
185,475
$
201,644
$
(16,169
)
(8
)%
ARPU
$
2.59
$
2.38
$
0.21
9
%
Average pay accounts
3,992
4,693
(701
)
(15
)%
Year Ended December 31,
Change
2011
2010
$
%
(in thousands, except percentages)
Content & Media cost of revenues
$
32,575
$
35,514
$
(2,939
)
(8
)%
Content & Media cost of revenues as a percentage of
Content & Media revenues
17.6
%
17.6
%