Revenue Recognition Revenue Recognition

3 Months Ended

Mar. 31, 2020

Revenue from Contract with Customer [Abstract]


Note 3			Revenue Recognition

We generate all of our revenue through contracts with customers. Revenue is either recognized over time as the service is provided, or at a point in time when the product is transferred to the customer, depending on the contract type. Our performance obligations typically have an original duration of one year or less.

Disaggregation of Revenue

The following table presents our disaggregated revenue by source and segment (in thousands):


	Quarter Ended March 31, 2020
	Consumer Media		Mobile Services		Games		Napster
Business Line
Software License	$	2,020	$	831	$	—	$	—
Subscription Services	929		5,859		2,770		26,323
Product Sales	222		—		2,978		—
Advertising and Other	324		—		889		—
Total	$	3,495	$	6,690	$	6,637	$	26,323

	Quarter Ended March 31, 2019
	Consumer Media		Mobile Services		Games		Napster
Business Line
Software License	$	735	$	599	$	—	$	—
Subscription Services	1,088		6,340		2,985		24,337
Product Sales	219		—		1,988		—
Advertising and Other	444		—		737		—
Total	$	2,486	$	6,939	$	5,710	$	24,337

The following table presents our disaggregated revenue by sales channel (in thousands):


	Quarter Ended March 31, 2020
	Consumer Media		Mobile Services		Games		Napster
Sales Channel
Business to Business	$	2,343	$	6,584	$	1,095	$	12,851
Direct to Consumer	1,152		106		5,542		13,472
Total	$	3,495	$	6,690	$	6,637	$	26,323

	Quarter Ended March 31, 2019
	Consumer Media		Mobile Services		Games		Napster
Sales Channel
Business to Business	$	1,178	$	6,817	$	1,036	$	12,095
Direct to Consumer	1,308		122		4,674		12,242
Total	$	2,486	$	6,939	$	5,710	$	24,337

Contract Balances

The timing of revenue recognition may differ from the timing of invoicing to our customers. We record accounts receivable when the right to consideration becomes unconditional, except for the passage of time. For certain contracts, payment schedules may exceed one year; for those contracts we recognize a long-term receivable. As of March 31, 2020 and December 31, 2019, our balance of long-term accounts receivable was $0.5 million and $0.3 million, respectively, and is included in other long-term assets on our condensed consolidated balance sheets. The increase in this balance from December 31, 2019 to March 31, 2020 is primarily due to a contract renewal in the first quarter of 2020. During the quarter ended March 31, 2020, we recorded no impairments to our contract assets.

We record deferred revenue when cash payments are received in advance of our completion of the underlying performance obligation. As of March 31, 2020 and December 31, 2019, we had a deferred revenue balance of $6.7 million, primarily due to deferred revenue associated with monthly subscriptions.

Practical Expedients

For those contracts for which we recognize revenue at the amount to which we have the right to invoice for service performed, we do not disclose the value of any unsatisfied performance obligations. We also do not disclose the remaining unsatisfied performance obligations which have an original duration of one year or less. Additionally, we immediately expense sales commissions when incurred as the amortization period would have been less than one year. These costs are recorded within sales and marketing expense.