The Company enters into contracts that may include various combinations of products and services, which are generally capable of being distinct and are accounted for as separate performance obligations.

Revenue is recognized when control of promised products or services is transferred to customers, in an amount that reflects the consideration the Company expects to be entitled to in exchange for those products or services.

Shipping charges billed to customers are included in revenue and the related shipping costs are included in cost of revenue. Revenue is recorded net of taxes collected or accrued. Sales taxes are recorded as current liabilities until remitted to the relevant government authority.

The Company does not have any capitalized costs associated with contract acquisition because most direct contract acquisition costs relate to contracts that are recognized over a period of one year or less.

The Company’s contracts may contain multiple distinct performance obligations. The computed transaction price of each contract is allocated to each performance obligation based on a relative stand-alone selling price (“SSP”). For performance obligations routinely sold separately, the SSP is determined by evaluating such stand-alone sales. For those performance obligations that are not routinely sold separately, the Company determines SSP based on a market assessment approach, or on an expected cost-plus margin approach.

The Company’s platform segment generates revenue from advertising sales, subscription and transaction revenue shares, the sale of branded channel buttons on remote controls and licensing arrangements with TV brands and service operators.

The Company sells the majority of its players through retail distribution channels, including brick and mortar and online retailers, and through the Company’s website. The Company’s player revenue includes allowances for returns and sales incentives in the estimated transaction price. These estimates are based on historical experience and anticipated performance.

The Company’s disaggregated revenue is represented by the two reportable segments discussed in Note 14. The disaggregation is based on the evaluations that are regularly performed by the chief operating decision maker (“CODM”) for purposes of allocating resources and evaluating financial performance. The Company’s CODM is its Chief Executive Officer.

Revenue allocated to remaining performance obligations represents estimated contracted revenue that has not yet been recognized which includes unearned revenue and amounts that will be invoiced and recognized as revenue in future periods. Estimated contracted revenue was $100.3 million as of March 31, 2019 of which we expect to recognize approximately 84% over the next 12 months and the remainder thereafter.

Contract balances include accounts receivable, contract assets and contract liabilities. Accounts receivable are recorded at the amount invoiced, net of an allowance for doubtful accounts and sales incentives. The payment terms with customers vary by contract. Contract assets are created when the timing of invoicing to a customer occurs subsequent to revenue recognition. Contract assets are transferred to accounts receivable when the right to bill becomes unconditional. The Company’s contract assets are current in nature and are included in “Prepaid expenses and other current assets”. The Company did not have any impairments relating to contract assets.

Contract liabilities are recorded as deferred revenue and primarily relate to timing differences between the billing terms and the fulfillment of performance obligations. Revenue is recognized when the performance obligation is completed and delivered or transfer of control occurs.

	As of		As of
	March 31, 2019		December 31, 2018
Accounts receivable, net	$	174,195	$	183,078
Contract assets, current		2,351		753

Deferred revenue, current		41,939		45,442
Deferred revenue, non-current		15,297		19,594
Total deferred revenue	$	57,236	$	65,036

Contract assets increased by approximately $1.6 million during the three months ended March 31, 2019 primarily due to a $1.8 million increase in contract asset from one customer where the Company’s right to bill falls into subsequent period. Deferred revenue decreased by approximately $7.8 million during the three months ended March 31, 2019 primarily due to revenue recognized of $5.0 million pursuant to customer acceptance of a milestone.