ServiceMagic 2010 Annual Report Download - page 14

Table of Contents
provides the requested service, as well as from one-time fees charged upon enrollment and activation of new service professionals in our
network. Lead fees vary based upon the service requested, with fees for leads generated through our Exact Match service being greater than
those for leads generated through our Market Match service. Our revenues are also generated, to a lesser extent, from fees paid by service
professionals for website development and hosting services provided by MarketHardware.
Competition
We currently compete with other service-related lead generation services, primarily home service-related services, as well as with internet
directories and local advertising, including radio, direct marketing campaigns, yellow pages, newspapers and other offline directories. We also
compete with local and national retailers of home improvement products that offer or promote installation services. We believe that our ability to
compete successfully will depend primarily upon the following factors:
• the size, quality (as determined, in part, by reference to our pre-screening efforts and customer ratings and reviews), diversity and
stability of our network of service professionals and the quality of services provided by these professionals;
• our continued ability to deliver consumer leads that convert into revenues for our network of service professionals in a cost-
effective manner; and
•
the functionality of our websites and the attractiveness of their features and our services generally to consumers and service
professionals, as well as our ability to introduce new products and services that resonate with consumers and service
professionals.
Media & Other Businesses
Our Media & Other segment currently consists primarily of Electus, Connected Ventures, Vimeo, Pronto, Shoebuy and Proust.com .
Electus is a multimedia company that seeks to enable media content creators to engage with advertising and technology partners at the inception
of the creative process and partner on the finished product across a global and multi-platform distribution model.
Connected Ventures is a new media network and development company that operates: CollegeHumor Media, a leading online entertainment
company targeting a core audience of young males ages eighteen to twenty-four through CollegeHumor.com and other websites; Notional, a
production company specializing in the creation of video content for all distribution platforms; and BustedTees.com , an online t-shirt retailer
targeting the CollegeHumor Media demographic. Vimeo is a website on which users can upload, share and view video. Pronto owns and
operates Pronto.com , a leading comparison search engine, through which consumers can search and compare prices for a wide range of
merchandise offered by online retailers.
Shoebuy, a leading internet retailer of footwear and related apparel and accessories, generally passes purchases made by customers through
its various websites on to the relevant vendors for fulfillment and shipping. On Proust.com , users ask and answer questions about the different
chapters of their lives, which information is then available online to share with family and friends.
Through January 2011, we owned and operated The Daily Beast, which was merged with print magazine Newsweek to form a joint venture
on February 1, 2011. The Daily Beast is a website dedicated to news and commentary, culture and entertainment that curates and provides
existing online content and new works from its own roster of contributors to users free of charge.
In the case of our Media & Other segment, revenues are generated primarily from merchandise sales, online advertising and content
production.
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