REVENUE

12 Months Ended

Dec. 31, 2023

Revenue from Contract with Customer [Abstract]

REVENUE

REVENUE

The following table sets forth the Company’s disaggregated revenues for the years ended December 31, 2023, and 2022, as well as the relative percentage to total revenue.

	Year Ended December 31,
(in thousands)	2023				2022
Direct Business:
Direct-to-Consumer:
O&O Consumer Service	$	26,502	47	%	$	25,549	33	%
App Services	3,384		6	%	3,940		5	%
Total Direct-to-Consumer	29,886		53	%	29,489		38	%
Partner Direct Business	4,706		8	%	4,631		6	%
Total Direct Business	34,592		61	%	34,120		44	%
Content Licensing:
Library sales*	11,739		21	%	6,131		8	%
Presales	2,308		4	%	18,560		24	%
Total Content Licensing	14,047		25	%	24,691		32	%
Bundled Distribution	6,316		11	%	11,726		15	%
Enterprise	141		—	%	5,520		7	%
Other	1,793		3	%	1,986		3	%
Total revenues	$	56,889			$	78,043
* The 2023 amount includes $9.9 million of trade and barter transactions.

REMAINING PERFORMANCE OBLIGATIONS

As of December 31, 2023, the Company expects to recognize revenues in the future related to performance obligations that are unsatisfied as follows:

	Year Ended December 31,
(in thousands)	2024		2025		2026		2027		Thereafter		Total
Remaining performance obligations	$	2,240	$	1,600	$	1,251	$	75	$	55	$	5,221

These amounts include only fixed consideration or minimum guarantees and do not include amounts related to (i) contracts with an original expected term of one year or less or (ii) licenses of content that are solely based on sales or usage-based royalties.

DEFERRED REVENUE

Contract liabilities (i.e., deferred revenue) consists of subscriber and affiliate license fees billed that have not been recognized, amounts contractually billed or collected for content licensing sales in advance of the related content being made available to the customer, and unredeemed gift cards and other prepaid subscriptions that have not been redeemed.

As of December 31, 2023, and 2022, total deferred revenues were $15.2 million and $14.9 million, respectively, with the non-current portions of $0.6 million as of December 31, 2023, and 2022, included in other liabilities on the consolidated balance sheets. The increase in deferred revenue was primarily due to higher subscription rates that the Company began to implement during 2023.

For the year ended December 31, 2023, the Company recognized revenues of $14.3 million related to amounts deferred as of December 31, 2022.

TRADE AND BARTER TRANSACTIONS

In the second quarter of 2023, the Company began entering into trade and barter transactions primarily for the purpose of exchanging content assets through licensing agreements with media counterparties. Certain transactions may also include the exchange of advertising, whereby the Company and its counterparty exchange media campaigns or other promotional services.

For content acquired through trade and barter transactions, the Company records the acquired assets in the consolidated balance sheet and amortizes those assets over the term of the content license, in accordance with the Company’s content and amortization policies. For other products and services received through trade and barter transactions, the Company records operating expenses upon receipt of such products and services, as applicable.

The transaction price for these contracts is measured at the estimated fair value of the non-cash consideration received unless this is not reasonably estimable; in which case, the consideration is measured based on the standalone selling price of the services provided. For an exchange of content, the performance obligation is satisfied at the time the content is made available for the counterparty to use, which represents the point in time that control is transferred. For advertising, the performance obligation is satisfied upon the Company’s delivery of the media campaign or other service to the counterparty.

For the years ended December 31, 2023, and 2022, trade and barter revenues were as follows:

	Year Ended December 31,
(in thousands)	2023		2022
Trade and barter license fees: Content licensing	$	9,873	$	—
Other trade and barter revenue*	1,130		—
Total trade and barter revenues	$	11,003	$	—
* Other revenue primarily relates to other marketing services

For the years ended December 31, 2023, and 2022, trade and barter advertising and marketing expenses were as follows:

	Year Ended December 31,
(in thousands)	2023	2022
Trade and barter advertising and marketing	1,480	—

For the years ended December 31, 2023, and 2022, additions to content assets resulting from trade and barter transactions were as follows:

	Year Ended December 31,
(in thousands)	2023	2022
Trade and barter additions to content assets	9,523	—