Juno 2012 Annual Report Download - page 14

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Table of Contents

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Products revenues are derived primarily from selling floral, gift and related products to consumers and include merchandise revenue and the related
shipping and service fees, less discounts and refunds. Products revenues also include revenues generated from sales of branded and non-branded hard
goods, software and hardware systems, cut flowers, packaging and promotional products, and a wide variety of other floral-related supplies to floral
network members.

Products revenues consist of revenues generated from the sale of yearbook reprints and related shipping and handling fees, as well as revenues
generated from reselling third-party merchandise.

Products revenues consist of revenues generated from the sale of NetZero 4G mobile broadband service devices and the related shipping and
handling fees, less discounts and refunds.


FTD services revenues are primarily derived from membership fees, order-related fees and services, and subscription and other fees generated
from independent members of the FTD and Interflora floral networks, as well as credit card processing services, e-commerce website services, online
advertising tools, and system support services.

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 dial-up Internet access, NetZero 4G mobile broadband, DSL, email, Internet security, web
hosting, 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 average monthly revenue per pay account
("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. We
have offered, and may offer in the future, a variety of price points, subscription periods, discounts, and promotions, both in connection with offers
extended to some of our existing accounts and through external marketing channels. Changes in our offers, the extent to which we make such offers and
the percentage of such offers that are accepted, can have a significant impact on ARPU, profitability, pay account acquisition metrics, conversion rates
of free accounts to pay accounts, and retention rates.

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.

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
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