Juno 2013 Annual Report Download - page 17

Table of Contents
Failure to have a successful strategy that aligns with technology advances and trends could adversely affect our business.
Consumers increasingly connect to the Internet through sources other than the personal computer, including mobile phones, smartphones,
handheld computers such as netbooks and tablets, video game consoles, and television set-top devices, and their penetration will likely continue to
increase. Our business will be adversely affected if we do not have a successful strategy that aligns with such trends. As new devices are continually
being released, it is difficult to predict the problems we may encounter in adapting our services and products and developing competitive new services
and products. Our social networking services and loyalty marketing service have a limited mobile presence, and we only began offering a mobile
broadband service in March 2012. We may devote significant resources to the creation, support and maintenance of services and products across
multiple platforms. If we are slow to develop services, products and technologies that are more compatible with alternative devices, we will fail to
capture the opportunities available as consumers and advertisers transition to a dynamic, multi-screen environment. If we fail to implement a successful
strategy that aligns with technology advances and trends, our business, financial condition, results of operations, and cash flows could be materially and
adversely affected.
Our marketing efforts may not be successful or may become more expensive, either of which could increase our costs and adversely impact our
business, financial condition, results of operations, and cash flows.
We spend significant resources marketing our brands, services and products. We rely on relationships with a wide variety of third parties,
including Internet search providers such as Google, social networking platforms such as Facebook, Internet advertising networks, co-registration
partners, retailers, distributors, television advertising agencies, and direct marketers, to source new members and to promote or distribute our services
and products. In addition, in connection with the launch of new services or products, we may spend a significant amount on marketing. With any of our
brands, services and products, if our marketing activities are inefficient or unsuccessful, if important third-party relationships or marketing strategies,
such as Internet search engine marketing and search engine optimization, become more expensive or unavailable, or are suspended or terminated, for
any reason, if there is an increase in the proportion of consumers visiting our websites or purchasing our services and products by way of marketing
channels with higher marketing costs as compared to channels that have lower or no associated marketing costs, or if our marketing efforts do not result
in our services and products being prominently ranked in Internet search listings, our business, financial condition, results of operations, and cash flows
could be materially and adversely impacted.
Legal actions or investigations could subject us to substantial liability, require us to change our business practices, and adversely affect our
business, financial condition, results of operations, and cash flows.
We are currently, and have been in the past, party to various legal actions and investigations. These actions may include, without limitation, claims
by private parties in connection with consumer protection and other laws, claims that we infringe third-party patents, trademarks, copyrights or other
intellectual property or proprietary rights, securities laws claims, claims involving marketing practices or unfair competition, claims in connection with
employment practices, breach of contract claims, and other business-related claims. The nature of our business could subject us to additional claims for
similar matters, as well as a wide variety of other claims, including, without limitation, claims for defamation, right of publicity, negligence, and privacy
and security matters. The failure to successfully defend against these and other types of claims, including claims relating to our business practices, could
result in our incurring significant liabilities related to judgments or settlements or require us to change our business practices. Infringement claims may
also result in our being required to obtain licenses from third parties, which licenses may not be available on acceptable terms, if at all. Both the cost of
defending claims, as well as the effect of settlements and judgments, could cause our results of
16