Juno 2014 Annual Report Download - page 8

Table of Contents
collection available anywhere on the Internet. Visitors to the website can interact with yearbooks, which can facilitate new forms of social connections, such
as sharing memorable content with friends and acquaintances or posting comments on the Classmates website or on Facebook. In addition, members can tag
photos directly in the digitized yearbook collection, search for individuals, and view an index of all members appearing in the yearbooks. Members and
visitors may also purchase a copy of many of the yearbooks available on the Classmates website. Seasonality has historically not had a material impact on
our social networking revenues.
 Visitors to the Classmates website can experience a substantial amount of content free of charge. Members with free accounts can use our
search feature to locate individuals in our database or in our collection of yearbooks; post information and view information posted by other members; tag
yearbook photos; and organize reunions and engage in other reunion-related activities. To engage in the premium features, a member is required to purchase
a paid subscription, which is generally available for terms ranging from three months to two years. Revenues from our Classmates website are derived
primarily from the sale of these subscriptions and, to a lesser extent, from advertising fees and other transactions on our website, including the sale of
yearbooks and yearbook reprints.
Paid subscription holders have access to a variety of premium features. We expect the features available to free users and paid subscription 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.
•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.
•Access to our Classmates Who Remembers You feature that alerts members when another member has remembered them and how they were
remembered (e.g., funny, smart, cool, gutsy, etc.).
 In addition to our Classmates website, we operate five international websites that offer social networking services, primarily as a social
networking platform to reconnect with 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 paid 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 2013, there were approximately 207 million high school graduates living in the U.S. and approximately 137 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.
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