America Online 2011 Annual Report Download - page 16

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Table of Contents
seek to deliver a clear and consistent message to consumers and other stakeholders. Our marketing efforts continue to support our new brand identity and our
mission to inform, entertain and connect the world. In addition, we seek to evolve our brand to reflect our efforts to deliver high-quality innovative content,
products and services to consumers by engaging in targeted and strategic marketing efforts. We intend to continue to promote and support the AOL brand as
well as our family of content and product brands. We look for strategic opportunities to integrate AOL into high value sponsorships and targeted promotions
aimed at defining our core value proposition to consumers. We also engage in meaningful marketing partnerships that allow us to grow our audience.
Employees
As of December 31, 2011, we employed approximately 5,660 people, including approximately 1,410 related to Patch. Our employees are based in 15
countries around the world, including the United States, the United Kingdom, Ireland, Germany, India and Canada. At that time, the country outside of the
United States where we had the largest employee population was the United Kingdom, with over 280 employees.
We reduced our total workforce in India by approximately 750 employees in connection with a restructuring initiative that was largely completed
during the second quarter of 2011, while also hiring new employees in areas of strategic focus, including Patch. A significant number of our international
employees support our domestic operations. In general, we consider our relationship with employees to be good.
Global Presence
As of December 31, 2011, we had AOL-branded and co-branded portals and websites in North America and Europe. A Spanish language portal, http://
latino.aol.com, is accessible in primarily Spanish-speaking regions. We offer internet access service under the AOL brand in the United States, Puerto Rico
and Canada and have advertising operations in the United States, Canada and Europe, as well as in Japan through a joint venture with Mitsui & Co., Ltd. In
addition, AOL provides consumer offerings, including Winamp and Shoutcast, internationally. We have also expanded our international operations through
the expansion of The Huffington Post and the acquisition of goviral, a company that distributes branded online video for media agencies, creative agencies
and content producers. As part of our recent restructuring initiatives to improve our ability to execute our strategy, we reduced our cost base in India. For
geographic area data for the years ended December 31, 2011, 2010 and 2009, see "Note 1" in our accompanying consolidated financial statements.
Seasonality
In the fourth quarter, we have historically seen a sequential increase in advertising revenues associated with holiday advertising; however, this
fluctuation can be offset by adverse economic conditions. Additionally, in the first quarter we have historically seen a sequential increase in average monthly
churn of domestic AOL-brand access subscribers (the number of subscribers that terminate or cancel our services, factoring in new and reactivated
subscribers).
12