America Online 2010 Annual Report Download - page 25

Table of Contents
maintain and enhance the image of our brand and consumer perception of it. If we are unable to effectively use our resources to market and affect the
evolution to a more sought after and desired brand, consumer awareness of and interest in our products and services may decline, and our ability to grow our
services and products could be negatively impacted.
If we cannot effectively distribute our content, products and services, our ability to attract new consumers could be adversely affected.
As the behavior of Internet consumers continues to change, distribution of our content, products and services via traditional methods (e.g., toolbars)
may become less effective, and new distribution strategies may need to be developed. Even if we are able to distribute our content, products and services
effectively, this does not assure that we will be able to attract new consumers.
Currently, an important distribution channel for AOL Properties is through our subscription access service. However, our access service subscriber base
has declined and is expected to continue to decline. This continued decline is likely to reduce the effectiveness of our subscription access service as a
distribution channel. If we are unable to grow organically by attracting new consumers directly to our content, products and services, we may need to rely on
distribution channels that require us to pay significant fees to third parties. Furthermore, these fees have been increasing as Internet companies compete for a
limited number of premium distribution channels. Any increased reliance on these third-party distribution channels could adversely affect our business.
If we cannot continue to develop and offer effective advertising products and services, our advertising revenues could be adversely affected.
Growth in our advertising revenues depends on our ability to continue offering effective products and services for advertisers and publishers.
Continuing to develop and improve these products and services may require significant time and costs. If we cannot continue to develop and improve our
advertising products and services, our advertising revenues could be adversely affected. Furthermore, if we cannot enhance our existing advertising offerings
or develop new advertising offerings or technologies to keep pace with market trends, including new technologies that more effectively or efficiently plan,
price or target advertising, our advertising revenues could be adversely affected.
Our access service subscriber base could decline faster than we currently anticipate.
Our access service subscriber base has declined and is expected to continue to decline. This decline is the result of several factors, including the
increased availability of high-speed Internet broadband connections, the fact that a significant amount of online content, products and services has been
optimized for use with broadband Internet connections and the effects of our strategic shift announced in 2006, which resulted in us essentially eliminating
our marketing efforts for our subscription access service and the free availability of the vast majority of our content, products and services. Also, a substantial
number of the subscribers to our subscription access service do not use the service to access the Internet on a regular basis and may terminate their
subscription at any time. In addition, we must maintain the current payment method information of our subscribers and, if we fail to do so, we may lose paid
relationships with some of our access subscribers. If any of these factors result in our access subscriber base declining faster than we currently anticipate, our
subscription revenues and business could be adversely affected.
A disruption or failure of our networks and information systems, the Internet or other technology may disrupt our business.
Our business is heavily dependent on the availability of network and information systems, the Internet and other technologies. Shutdowns or service
disruptions caused by events such as criminal activity, sabotage or espionage, computer viruses or hacking, router disruption, automated attacks such as denial
of service attacks,
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