Juno 2013 Annual Report Download - page 7

Table of Contents
All-Access Pass holders have access to a variety of premium features. We expect the features available to free users and All-Access Pass holders
to continue to change from time to time. Premium features currently include, among others:
•Access to our Classmates® Guestbook, which alerts members when another member visits his or her Classmates profile, unless the
visiting member makes the profile selection not to leave his or her name. Only All-Access Pass holders are able to see the names of the
members who visited their Classmates profile.
•Access to our Classmates location feature, which shows the geographic locations, based on zip codes, of the members in the All-Access
Pass holder's high school or other community affiliation.
•Ability to send emails through our Classmates website to other members and respond to email messages from any other member,
regardless of whether the sender is a free member or a paying member.
 In addition to our Classmates website, we operate five international websites that offer social networking services, primarily as a
social networking platform to reconnect friends and acquaintances from high school. We operate StayFriends in Germany, Sweden, Austria, and
Switzerland (, and , respectively), and Trombi in France
(). Similar to the Classmates website, each international website includes free and pay memberships.
—The Internet continues to evolve and grow as a platform to enable, among other things, social interaction, consumer
engagement, the sale of goods and services, and advertising. We believe that as people age, many develop a strong interest in reconnecting with people
and events from their past.
The number of Internet users age 35 and older is expected to increase from 124.9 million in 2012 to 138.8 million in 2016, according to 2012
forecasts by eMarketer, a market research firm. Community affiliations based on schools attended encompass a particularly large population of
individuals. According to the U.S. Census Bureau, as of 2012, there were approximately 204 million high school graduates living in the U.S. and
approximately 133 million people living in the U.S. who had attended college. We believe that the occurrence of class reunions among this large
population frequently strengthens an individual's curiosity and nostalgic feelings about school memories, friends and acquaintances, and popular culture
during such individual's years in high school and college.
Our domestic Classmates service, which launched in 1995 as one of the first social networking services, is designed to assist members in finding
friends and acquaintances primarily from high school. Consumers can register for free accounts or pay for premium accounts that give them access to
more information. As the Internet has matured, a number of other platforms and services, such as Facebook and Google, have provided alternative
means for individuals to find and interact with people from their past. Facebook, in particular, has become a dominant platform for finding and
interacting with people online, including both past and present acquaintances. Our services continue to provide a platform for social networking
activities and communications, especially related to the high school experience. We are also using the Facebook platform as an additional location for
people to access our content and services.
—As consumers continue to spend more time and money online, the competition for their time and engagement has continued to
intensify. Consumers have a great number of options for online content and entertainment, including, by way of example, games, websites offering
news and current events, movies, television shows, videos, information about any and virtually every topic, and the opportunity to communicate,
socialize and interact with acquaintances and others. Certain aspects
6