Enom 2012 Annual Report Download - page 4

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sites by adding a majority of the new content we publish in 2013 to these distribution points. In addition, we plan to use the extensive
data on how consumers are accessing our content via mobile devices to develop new mobile-centric content.
We will also leverage our audience, data, and content creation platform to expand beyond advertising-driven content with new paid
content opportunities such as e-learning, experts-on-demand and subscription services. We accelerated our paid content strategy with
the recent acquisition of Creativebug, a leading online destination for art and craft instruction. In addition, we plan to launch a new
LIVESTRONG.com subscription-based 30 minute daily workout program and meal plan that is integrated with our calorie tracker.
We are also testing an expert-on-demand service, powered by our studio of experts, which engages users in real-time with a deeper
level of advice and interaction.
We expect our increased investment in new content and expansion into paid content offerings to drive future growth as well as
diversify and strengthen our content & media platform.
Registrar
Our registrar business is preparing for the launch of more than 1,000 new gTLDs, which we believe represents a historic event for the
internet that will unlock more consumer choice and generate new growth opportunities. New gTLDs offer consumers and businesses
additional opportunities to brand themselves online with unique web addresses that are typically unavailable with a .com and .net
extension.
We also view the upcoming launch of gTLDs as a transformative event for our registrar services business as we transition from a high
volume, wholesale distribution model to an end-to-end domain services business featuring registry and other value added services.
Through our platform, we will register unique domain names for consumers and businesses, and provide value added solutions to
build out these new web addresses.
Creation of Two Independent Publicly Traded Companies
Our two strong businesses are addressing increasingly distinct growth opportunities and markets. In February 2013, our Board
authorized management to explore the separation of Demand Media into two independent, publicly traded companies:
• A leading online media company delivering quality content to over 100 million monthly consumers, and
• A leading end-to-end domain services company supporting millions of businesses and consumers.
We believe that a separation will better position each of our companies to pursue its unique strategic priorities and opportunities.
Once the spin-off is completed, Demand Media will become a pure-play media company with a powerful outsourced content creation
platform, leading web properties that reach over 100 million monthly unique visitors, and a unique monetization platform that
incorporates branded, network and mobile optimizations.
Our new domain services company will be one of the only end-to-end domain services providers, with a large registry that includes
numerous gTLDs, expansive wholesale and retail distribution, and, through a joint venture, a dominant aftermarket platform to buy,
sell and monetize domain names.
In short, in 2012, we significantly enhanced our content creation process and expanded our distribution, leading to record traffic
growth and financial results. We also set the stage for future growth with our investments in mobile, international, content channels
and gTLDs.
In 2013, we are excited to further diversify and strengthen both our content & media and domain services businesses, and position
each as a leader in its respective market. We believe the separation of Demand Media into two distinct publicly traded companies will
better enable each business to capitalize on its respective growth opportunities.
I’d like to thank all of our employees for their outstanding efforts over the past year. I’d also like to thank you, our shareholders, for
your continuing support as we embark on these exciting growth initiatives.
Thank you,
Richard Rosenblatt
Chairman and CEO