Revenue Recognition Revenue Recognition

6 Months Ended

Jun. 30, 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 June 30, 2020														Six Months Ended June 30, 2020
	Consumer Media		Mobile Services		Games		Napster		Consumer Media		Mobile Services		Games		Napster
Business Line
Software License	$	1,702	$	972	$	—	$	—	$	3,722	$	1,803	$	—	$	—
Subscription Services	898		5,489		2,730		23,339		1,827		11,348		5,500		49,662
Product Sales	261		—		3,712		—		483		—		6,690		—
Advertising and Other	298		—		1,023		—		622		—		1,912		—
Total	$	3,159	$	6,461	$	7,465	$	23,339	$	6,654	$	13,151	$	14,102	$	49,662

	Quarter Ended June 30, 2019														Six Months Ended June 30, 2019
	Consumer Media		Mobile Services		Games		Napster		Consumer Media		Mobile Services		Games		Napster
Business Line
Software License	$	944	$	957	$	—	$	—	$	1,679	$	1,556	$	—	$	—
Subscription Services	1,040		6,040		3,073		28,583		2,128		12,380		6,058		52,920
Product Sales	206		—		2,177		—		425		—		4,165		—
Advertising and Other	430		—		798		—		874		—		1,535		—
Total	$	2,620	$	6,997	$	6,048	$	28,583	$	5,106	$	13,936	$	11,758	$	52,920

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


	Quarter Ended June 30, 2020														Six Months Ended June 30, 2020
	Consumer Media		Mobile Services		Games		Napster		Consumer Media		Mobile Services		Games		Napster
Sales Channel
Business to Business	$	1,999	$	6,362	$	1,197	$	10,438	$	4,343	$	12,946	$	2,292	$	23,289
Direct to Consumer	1,160		99		6,268		12,901		2,311		205		11,810		26,373
Total	$	3,159	$	6,461	$	7,465	$	23,339	$	6,654	$	13,151	$	14,102	$	49,662

	Quarter Ended June 30, 2019														Six Months Ended June 30, 2019
	Consumer Media		Mobile Services		Games		Napster		Consumer Media		Mobile Services		Games		Napster
Sales Channel
Business to Business	$	1,375	$	6,881	$	1,115	$	13,804	$	2,553	$	13,698	$	2,151	$	25,899
Direct to Consumer	1,245		116		4,933		14,779		2,553		238		9,607		27,021
Total	$	2,620	$	6,997	$	6,048	$	28,583	$	5,106	$	13,936	$	11,758	$	52,920

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 June 30, 2020 and December 31, 2019, our balance of long-term accounts receivable was $0.4 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 June 30, 2020 is primarily due to a contract renewal in 2020. During the quarter and six months ended June 30, 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 June 30, 2020 and December 31, 2019, we had a deferred revenue balance of $6.6 million and $6.7 million, respectively, 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.