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4
Item 1. Business
As used herein, “Demand Media,” the “Company,” “our,” “we,” “us” and similar terms include Demand
Media, Inc. and its subsidiaries, unless the context indicates otherwise.
“Demand Media” and other trademarks of ours appearing in this report are our property. This report contains
additional trade names and trademarks of other companies. We do not intend our use or display of other companies’
trade names or trademarks to imply an endorsement or sponsorship of us or our business by such companies, or any
relationship with any of these companies.
Overview
Demand Media is a diversified Internet company that builds platforms across its media and marketplaces
properties to enable communities of creators to reach passionate audiences in large and growing lifestyle categories. In
addition, our branded content creation and diverse advertising offerings help advertisers find innovative ways to engage
with their customers.
Our business is comprised of two service offerings: Content & Media and Marketplaces.
x Content & Media: Our Content & Media service offering includes our leading owned and operated
online properties that publish media content, including text articles, videos, photographs and designed
visual formats. This content is published across several key categories on eHow.com (“eHow”), a do-it-
yourself and how-to reference destination; Livestrong.com, a health and healthy living destination;
Cracked.com (“Cracked”), a humor site offering original and engaging comedy-driven video series, text
articles and blogs; and certain niche properties focused on specific interests. Additionally, our studioD
business develops and executes content marketing strategies and creates custom content for third-party
brands, advertisers and publishers.
x Marketplaces: Through our Marketplaces service offering, we operate two leading art and design
marketplaces where large communities of artists can market and sell their original artwork or original
designs printed on a wide variety of products. Society6.com (“Society6”) provides artists with an online
commerce platform to feature and sell their original designs on art prints, phone and tablet cases, t-shirts,
throw pillows and other consumer and home décor products. SaatchiArt.com (“Saatchi Art”) is an online
art gallery featuring a wide selection of original paintings, drawings, sculptures and photography that
provides a global community of artists a curated environment in which to exhibit and sell their work
directly to consumers around the world.
Our Content & Media service offering derives the majority of its revenue from the sale of advertising on our
online properties. We also generate revenue from the sale or license of content and the sale of content marketing
services. Our Marketplaces service offering generates revenue from the sale of products and services through our art and
design marketplaces. Information about our revenue by service offering is set forth in Note 16 of our Notes to
Consolidated Financial Statements included in Part III, Item 15, “Exhibits, Financial Statement Schedules” of this
Annual Report on Form 10-K.
On August 1, 2014, we completed the separation of Rightside Group, Ltd. (“Rightside”) from Demand Media,
resulting in two independent, publicly traded companies (hereinafter referred to as the “Separation”). Following the
Separation, Rightside operates our former domain name services business, while we continue to own and operate our
Content & Media and Marketplaces businesses. The Separation was structured as a pro rata tax-free dividend involving
the distribution of all outstanding shares of Rightside common stock to holders of Demand Media common stock as of
the August 1, 2014 record date (the “Distribution”). Immediately following the Distribution, we completed a 1-for-5
reverse stock split of our outstanding and treasury shares of common stock. The financial results of Rightside are
presented as discontinued operations in our consolidated statements of operations for all periods prior to fiscal 2015
presented in this Annual Report on Form 10-K.