Question-and-Answer Session
Operator
(Operator Instructions) Your first question comes from Kevin Liu - B. Riley & Co.
Kevin Liu - B. Riley & Co.
First off, on Photo Stamps, I know you have reduced some marketing spend pretty significantly there but the volumes actually look like they held up relatively well on a sequential basis. So I was wondering if there are any particular channels where you are seeing more of that strength? Whether it's coming out of your retail offering or some of the partnerships with the likes of Adobe and others.
Kyle Huebner
Q3 is our seasonally slowest quarter in Photo Stamps. Most of the revenue in Q3 kind of came from just the Web site traffic and so I think some of what you saw is that we anniversaried the slowdown in 2008. Q3 was where we really a slowdown in our businesses. So I think the year-over-year revenue decline wasn't as pronounced as the first half of the year, as we kind of anniversaried that. But I would say we saw some stabilization in kind of the Web site revenue in Q3, but it is our slowest seasonal quarter.
Kevin Liu - B. Riley & Co.
And as we look towards Q4 for Photo Stamps, would we expect to see the marketing start to pick back up in advance of the holiday season, or is the plan here still to try to maintain the profitability as much as possible?
Kyle Huebner
The plan is still to maintain the profitability. I think we expect that the marketing spend to be up a little bit sequentially but as Ken talked about, we're really not going to invest heavily while the economy is still down. So I think we'll invest a little bit more in Q4 because it the seasonally strongest quarter, but not at the levels that you saw in the previous years.
Kevin Liu - B. Riley & Co.
And two quick questions on the PC Postage segment. One, in terms of the ARPU for your subscribers, it seems like that has continued to tick up, so I'm wondering you guys are in terms of figuring out the appropriate pricing plan. And then secondly, on the Enterprise initiative, just wanted to get a sense of, perhaps on the pilots you have in the works right now, where these could turn out to be more significant roll outs in the coming year.
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