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

Revenue is recognized upon the transfer of promised goods or services to customers in an amount that reflects the consideration to which the Company expects to be entitled in exchange for those goods 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 in the U.S., including brick and mortar and online retailers, as well as 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.

	As of
	September 30, 2019		December 31, 2018
Accounts receivable, net	$	196,044	$	183,078
Contract assets (included in Prepaid expenses and other current assets)		4,787		753

Deferred revenue, current		35,912		45,442
Deferred revenue, non-current		12,932		19,594
Total deferred revenue	$	48,844	$	65,036

Accounts receivable are recorded at the amount invoiced, net of an allowance for doubtful accounts, sales returns, and sales incentives. Payment terms can vary by customer and contract.

The timing of revenue recognition may differ from the timing of invoicing to customers. Contract assets are created when invoicing occurs subsequent to revenue recognition. Contract assets are transferred to accounts receivable when the right to invoice becomes unconditional. Contract liabilities are included in deferred revenue and reflect consideration invoiced prior to the completion of performance obligations and revenue recognition.

Contract assets increased by approximately $4.0 million during the nine months ended September 30, 2019 primarily due to an increase in the growth of platform revenue combined with the timing of billing which falls into a subsequent period. Deferred revenue decreased by approximately $16.2 million during the nine months ended September 30, 2019 primarily due to revenue recognized of $5.0 million pursuant to customer acceptance of a milestone, and the remaining revenue recognized primarily relates to the timing of fulfillment of performance obligations and the overall growth in the business.

During the three and nine months ended September 30, 2019, the Company recognized revenue of approximately $6.3 million and $44.2 million, respectively, from the amounts deferred as of December 31, 2018. During the three and nine months ended September 30, 2018, the Company recognized revenue of approximately $5.3 million and $34.9 million, respectively, from the amounts deferred as of January 1, 2018.

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 $146.8 million as of September 30, 2019 of which we expect to recognize approximately 62% over the next 12 months and the remainder thereafter.