Juno 2013 Annual Report Download - page 41

Table of Contents
during a period; and for the Content & Media segment the average foreign currency exchange rate between the U.S. Dollar and the Euro.
 To evaluate the retention characteristics of our membership base, we also monitor the percentage of pay accounts that terminate or expire,
which we refer to as our average monthly churn rate. Our average monthly churn rate is calculated as the total number of pay accounts that terminated or
expired in a period divided by the average number of pay accounts for that period, divided by the number of months in that period. Our average monthly
churn percentage may fluctuate from period to period due to our mix of subscription terms, which affects the timing of subscription expirations, and
other factors. We make certain normalizing adjustments to the calculation of our churn percentage for periods in which we add a significant number of
pay accounts due to acquisitions. For our Communications segment pay accounts, we do not include in our churn calculation accounts canceled during
the first 30 days of service, other than dial-up accounts that have upgraded from free accounts. A number of such accounts nevertheless will be included
in our account totals at any given measurement date. Subscribers who cancel one pay service but subscribe to another pay service are not necessarily
considered to have canceled a pay account depending on the services and, as such, our segment churn rates are not necessarily indicative of the
percentage of subscribers canceling any particular service.
 We monitor the number of active accounts among our membership base. Content & Media segment active accounts are defined
as the sum of all pay accounts as of the date presented; the monthly average for the period of all free accounts who have visited our domestic or
international social networking websites (excluding schoolFeed, The Names Database and Yearbook app), at least once during the period; and the
monthly average for the period of all loyalty marketing members who have earned or redeemed points during such period. Communications segment
active accounts include all Communications segment pay accounts as of the date presented combined with the number of free dial-up Internet access and
email accounts that logged onto our services at least once during the preceding 31 days. Content & Media segment and Communications segment active
accounts for the six-month, nine-month and annual periods, as applicable, are calculated as a simple average of the quarterly active accounts for each
respective segment.
In general, we count and track pay accounts and free accounts by unique member identifiers. Users have the ability to register for separate services
under separate brands and member identifiers independently. We do not track whether a pay account has purchased more than one of our services
unless the account uses the same member identifier. As a result, total active accounts may not represent total unique users.
The pay accounts and ARPU metrics for the Content & Media segment may fluctuate significantly from period to period due to various factors,
including, but not limited to, the extent to which discounted pricing is offered in prior and current periods, the percentage of pay accounts being
represented by international pay accounts, which, on average, have lower-priced subscription plans compared to U.S. pay accounts, and the churn rate.
The pay accounts, churn and ARPU metrics for the Communications segment may fluctuate significantly from period to period due to various
factors, including, but not limited to, the number of mobile broadband pay accounts, which have a higher churn rate and ARPU.
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