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Intangible Assets
12 Months Ended
Dec. 31, 2017
Intangible Assets  
Intangible Assets

4. Intangible Assets

Intangible assets consisted of the following (in thousands):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

December 31, 2017

 

 

 

 

 

Gross carrying

 

Accumulated

 

Net carrying

 

Weighted average

 

 

 

amount

 

amortization

 

amount

 

useful life (years)

 

Customer relationships

 

$

2,853

 

$

(1,628)

 

$

1,225

 

4.3

 

Artist relationships

 

 

12,235

 

 

(10,659)

 

 

1,576

 

4.1

 

Media content

 

 

91,445

 

 

(90,187)

 

 

1,258

 

5.1

 

Technology

 

 

6,204

 

 

(4,751)

 

 

1,453

 

4.6

 

Non-compete agreements

 

 

25

 

 

(20)

 

 

 5

 

3.0

 

Trade names

 

 

9,889

 

 

(4,975)

 

 

4,914

 

10.2

 

 

 

$

122,651

 

$

(112,220)

 

$

10,431

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

December 31, 2016

 

 

 

 

 

Gross carrying

 

Accumulated

 

Net carrying

 

Weighted average

 

 

 

amount

 

amortization

 

amount

 

useful life (years)

 

Customer relationships

 

$

1,453

 

$

(1,252)

 

$

201

 

3.7

 

Artist relationships

 

 

11,916

 

 

(10,337)

 

 

1,579

 

4.1

 

Media content

 

 

91,616

 

 

(87,604)

 

 

4,012

 

5.1

 

Technology

 

 

5,654

 

 

(3,649)

 

 

2,005

 

4.7

 

Non-compete agreements

 

 

25

 

 

(11)

 

 

14

 

3.0

 

Trade names

 

 

7,539

 

 

(4,077)

 

 

3,462

 

10.2

 

 

 

$

118,203

 

$

(106,930)

 

$

11,273

 

 

 

Identifiable finite-lived intangible assets are amortized on a straight-line basis over their estimated useful lives.

Amortization expense by classification is shown below (in thousands):

 

 

 

 

 

 

 

 

 

 

 

 

 

Year ended December 31, 

 

 

    

2017

    

2016

    

2015

    

Service costs

 

$

3,212

 

$

7,037

 

$

12,680

 

Sales and marketing

 

 

692

 

 

2,319

 

 

3,862

 

Product development

 

 

1,101

 

 

987

 

 

1,440

 

General and administrative

 

 

723

 

 

557

 

 

724

 

Total amortization

 

$

5,728

 

$

10,900

 

$

18,706

 

Service costs for the years ended December 31, 2017, 2016 and 2015 include an accelerated amortization charge of $0.7 million, $1.9 million and $3.4 million, respectively, as a result of the removing certain content assets from service.

Based upon the current amount of intangible assets subject to amortization, the estimated amortization expense for the next five years as of December 31, 2017 is as follows (in thousands):

 

 

 

 

 

 

 

Estimated

 

 

    

Amortization

 

Year ending December 31,

 

 

 

 

2018

 

$

3,397

 

2019

 

$

1,959

 

2020

 

$

1,336

 

2021

 

$

1,172

 

2022

 

$

930

 

Thereafter

 

$

1,637