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No. of Recommendations: 0 Goes on a Feeding Frenzy
By Tom Taulli
May 23, 2006

It seems that (Nasdaq: DIET) has been, well, on a diet. In the first quarter, revenue inched up only 6% to $13.8 million.

But maybe it has some excuse -- I mean, the company has been in the midst of a transition. Premium subscriptions form the core of's business model. Users log in to choose from a variety of dietary approaches, including the Zone and Atkins. The biggest problem with this type of business model is that the online (and offline) dieting space is quite crowded, and it's getting more difficult to convince users to pay up for calorie-counting advice. With online advertising getting more expensive, acquiring new customers has also become less profitable......
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