CONTENT ASSETS

9 Months Ended

Jun. 30, 2023

Content Assets [Abstract]

CONTENT ASSETS

NOTE 3 – CONTENT ASSETS

Content Assets

The content we stream to our users is generally acquired by securing the intellectual property rights to the content through licenses from, and paying royalties or other consideration to, rights holders or their agents. The licensing can be for a fixed fee or can be a revenue sharing arrangement. The licensing arrangements specify the period when the content is available for streaming, the territories, the platforms, the fee structure and other standard content licensing terms

defining the rights and/or restrictions for how the licensed content can be used by Loop Media.  We also develop original content internally, which is capitalized when the content is ready and available for streaming, and generally amortized over a period of two to three years. 

As of June 30, 2023, content assets were $2,462,777 recorded as Content asset, net – current and $579,869 recorded as Content asset, net – noncurrent, of which $159,077 was internally-developed content asset, net.  

We recorded amortization expense in cost of revenue, in the consolidated statements of operations, related to capitalized content assets:

	Three months ended June 30,				Nine months ended June 30,
	2023		2022		2023		2022
Licensed Content Assets	$	760,951	$	275,823	$	2,045,794	$	933,036
Internally-Developed Assets		18,215		—		46,082		—
Total	$	779,166	$	275,823	$	2,091,876	$	933,036

Our content license contracts are typically two to three years. The amortization expense for the next three years for capitalized content assets as of June 30, 2023:

	Remaining in Fiscal Year 2023		Fiscal Year 2024		Fiscal Year 2025		Fiscal Year 2026
Licensed Content Assets	$	755,022	$	2,010,157	$	115,726	$	2,664
Internally-Developed Assets		18,215		72,860		59,440		8,562
Total	$	773,237	$	2,083,017	$	175,166	$	11,226

License Content Liabilities

On June 30, 2023, we had $935,664 of obligations comprised of $568,906 in License content liability – current and $366,758 in accounts payable on our consolidated balance sheets. Payments for content liabilities for the nine months ended June 30, 2023, were $4,206,768. The expected timing of payments for these content obligations is $280,320 payable in the fourth quarter of fiscal year 2023 with the remaining payable in the first, second and third quarters of fiscal year 2024.