America Online 2011 Annual Report Download - page 9

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Table of Contents
we launched a self-serve platform that allows advertisers to create advertisements specifically for their customers. Although AOL is facing increasing
competition in the local market, we believe we are well-positioned to be a leader in providing services to local markets through our established brands and
through the continued expansion of Patch, which has grown from approximately 775 sites as of December 31, 2010 to 863 sites as of December 31, 2011. In
order to take advantage of this position, we intend to continue to invest in this area and establish online destinations that provide comprehensive news, events
and directories at the local level.
We seek to continue to supplement our MapQuest offerings beyond navigation through the launch of original travel content, better trip planning
features and MapQuest Vibe, a social platform designed to help users explore and discover the best places in any neighborhood. We plan on further refining
our mobile products with features, enhancements and new products that enable users to experience trips more efficiently.
In addition, we provide local directory listings through our AOL Yellow Pages product. The listings are provided by a third party and AOL receives a
revenue share.
AOL Services
AOL Services encompasses our paid services, search, the AOL.com homepage and mail operations, including mobile development and other offerings.
AOL Services includes our subscription access service, which provides a number of online services including narrow-band (telephone dial-up) access to
the internet. We are developing, testing and marketing additional AOL and third-party products and services that are offered to internet consumers generally.
Some products or services are offered to access subscribers for no additional charge or at a discounted rate in order to increase customer satisfaction and
retention. Computer tools, maintenance and warranty services, online technical support, anti-virus software, identity theft protection, online and social media
privacy and reputation monitoring services, diet and fitness services, online learning and other lifestyle services are currently offered and additional categories
may be added in the future. Consumers will be able to manage their products and services through this platform, including adding or canceling a product or
service. AOL continues to develop and offer other paid services as a way to attract, engage and serve consumers. Currently, the majority of the consumers for
our paid services products are also access subscribers.
The revenue related to these products and services is recognized as subscription revenue in cases where we are responsible for providing the service to
the end consumer. In instances when we are promoting a third-party product and receiving performance compensation on those services, but the third party is
responsible for providing the service to the end consumer, we recognize the revenue as display advertising revenue.
We also offer an array of consumer applications, such as AOL Mail and AIM, which are leading e-mail and instant messaging services in the United
States. We seek to enable consumers to access our content, products and services on mobile devices. In 2011, we made significant improvements to our
mobile web portal and launched a number of innovative mobile applications that extend our desktop properties.
Distribution of AOL Properties
Content, products and services on AOL Properties are generally available to online consumers and we are focused on attracting greater numbers of
consumers to our offerings. In addition, we utilize various distribution channels as described below which allow us to more directly reach online consumers.
Subscription Access Service
Our AOL-brand subscription access service, which we offer to consumers in the United States for a monthly fee, is a valuable distribution channel for
AOL Properties. As of December 31, 2011, we had 3.3 million AOL-brand subscribers in the United States of which approximately 11% use our service for
dial-up access. Our
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