Realnetworks (RNWK) 10-Q 9 Nov 15 2015 Q3 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	9 Months Ended
	Sep. 30, 2015	Oct. 30, 2015
Document and Entity Information [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Sep. 30, 2015
Document Fiscal Year Focus	2,015
Document Fiscal Period Focus	Q3
Trading Symbol	RNWK
Entity Registrant Name	REALNETWORKS INC
Entity Central Index Key	1,046,327
Current Fiscal Year End Date	--12-31
Entity Filer Category	Accelerated Filer
Entity Common Stock, Shares Outstanding		36,250,994

CONDENSED CONSOLIDATED BALANCE

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Sep. 30, 2015	Dec. 31, 2014
Current assets:
Cash and cash equivalents	$ 61,831	$ 103,253
Short-term investments	50,412	58,453
Trade accounts receivable, net of allowances	20,534	15,257
Deferred costs, current portion	324	702
Deferred tax assets, net, current portion	640	652
Prepaid expenses and other current assets	5,953	8,980
Total current assets	139,694	187,297
Equipment, software, and leasehold improvements, at cost:
Equipment and software	69,437	74,100
Leasehold improvements	3,592	3,590
Total equipment, software, and leasehold improvements, at cost	73,029	77,690
Less accumulated depreciation and amortization	62,353	61,442
Net equipment, software, and leasehold improvements	10,676	16,248
Restricted cash equivalents and investments	3,000	3,000
Investment in and advances to Rhapsody	0	10,000
Available for sale securities	1,756	2,676
Other assets	2,520	2,299
Deferred costs, non-current portion	145	316
Deferred tax assets, net, non-current portion	1,959	999
Other intangible assets, net	2,813	10,109
Goodwill	13,101	17,355
Total assets	175,664	250,299
Current liabilities:
Accounts payable	15,853	18,653
Accrued and other current liabilities	23,890	25,286
Deferred tax liabilities, net, current portion	1,602	1,628
Deferred revenue, current portion	3,638	5,301
Total current liabilities	44,983	50,868
Deferred revenue, non-current portion	98	235
Deferred rent	637	1,215
Deferred tax liabilities, net, non-current portion	156	702
Other long-term liabilities	2,228	81
Total liabilities	$ 48,102	$ 53,101
Commitments and contingencies
Preferred stock, $0.001 par value, no shares issued and outstanding:
Common stock, $0.001 par value authorized 250,000 shares; issued and outstanding 36,251 shares in 2015 and 36,099 shares in 2014	$ 36	$ 36
Additional paid-in capital	625,576	617,756
Accumulated other comprehensive loss	(59,274)	(55,252)
Retained deficit	(438,776)	(365,342)
Total shareholders’ equity	127,562	197,198
Total liabilities and shareholders’ equity	175,664	250,299
Preferred stock, Series A
Preferred stock, $0.001 par value, no shares issued and outstanding:
Preferred stock	0	0
Preferred stock, Undesignated series
Preferred stock, $0.001 par value, no shares issued and outstanding:
Preferred stock	$ 0	$ 0

CONDENSED CONSOLIDATED BALANCE3

CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares shares in Thousands	Sep. 30, 2015	Dec. 31, 2014
Preferred stock, par value (USD per share)	$ 0.001	$ 0.001
Preferred stock, shares issued	0	0
Preferred stock, shares outstanding	0	0
Common stock, par value (USD per share)	$ 0.001	$ 0.001
Common stock, authorized	250,000	250,000
Common stock, issued	36,251	36,099
Common stock, outstanding	36,251	36,099
Preferred stock, Series A
Preferred stock, authorized	200	200
Preferred stock, Undesignated series
Preferred stock, authorized	59,800	59,800

CONDENSED CONSOLIDATED STATEMEN

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS) - USD ($) shares in Thousands, $ in Thousands	3 Months Ended				9 Months Ended
	Sep. 30, 2015		Sep. 30, 2014		Sep. 30, 2015	Sep. 30, 2014
Income Statement [Abstract]
Net revenue (A)	$ 30,823		$ 34,157	[1]	$ 95,374	$ 120,706
Cost of revenue (B)	18,090	[2]	18,928	[2]	54,469	58,500
Extinguishment of liability	0		0		0	(10,580)
Gross profit	12,733		15,229		40,905	72,786
Operating expenses:
Research and development	10,501		12,784		34,681	40,110
Sales and marketing	11,938		13,283		38,822	51,022
General and administrative	7,021		7,723		21,312	25,617
Restructuring and other charges	3,114		2,048		5,563	3,805
Lease exit and related charges	2,121		154		2,208	703
Total operating expenses	34,695		35,992		102,586	121,257
Operating income (loss)	(21,962)		(20,763)		(61,681)	(48,471)
Other income (expenses):
Interest income, net	147		80		597	396
Gain (loss) on investments, net	(615)		0		(222)	2,371
Equity in net loss of Rhapsody	(735)		(1,530)		(13,831)	(4,170)
Other income (expense), net	297		325		628	153
Total other income (expenses), net	(906)		(1,125)		(12,828)	(1,250)
Income (loss) before income taxes	(22,868)		(21,888)		(74,509)	(49,721)
Income tax expense (benefit)	(1,684)		290		(1,075)	1,256
Net income (loss)	$ (21,184)		$ (22,178)		$ (73,434)	$ (50,977)
Basic net income (loss) per share (USD per share)	$ (0.59)		$ (0.62)		$ (2.03)	$ (1.42)
Diluted net income (loss) per share (USD per share)	$ (0.59)		$ (0.62)		$ (2.03)	$ (1.42)
Shares used to compute basic net income (loss) per share (shares)	36,191		36,003		36,134	35,912
Shares used to compute diluted net income (loss) per share (shares)	36,191		36,003		36,134	35,912
Comprehensive income (loss):
Unrealized investment holding gains (losses), net of reclassification adjustments	$ (596)		$ (323)		$ (881)	$ (3,936)
Foreign currency translation adjustments, net of reclassification adjustments	(1,144)		(2,338)		(3,141)	(2,147)
Total other comprehensive income (loss)	(1,740)		(2,661)		(4,022)	(6,083)
Net income (loss)	(21,184)		(22,178)		(73,434)	(50,977)
Comprehensive income (loss)	$ (22,924)		$ (24,839)		$ (77,456)	$ (57,060)
[1]	Quarters ended September 30, 2015 quarter ended September 30, 2015Components of Revenue License Fees7,049 5,925Service Revenue23,774 28,232Net Revenue30,823 34,157 9 months ended September 30, 2015 September 30, 2014Components of Revenue License Fees$21,259 $21,168Service Revenue74,115 99,538Net Revenue$95,374 $120,706
[2]	Components of Cost of RevenueSeptember 30, 2015 September 30, 2014 License Fees1,877 2,044 Service Revenue16,213 16,884 Net Revenue Costs18,090 18,928 9 months ended September 30, 2015 September 30, 2014Components of Cost of Revenue License Fees$5,048 $6,426Service Revenue49,421 52,074Net Revenue Costs$54,469 $58,500

CONDENSED CONSOLIDATED STATEME5

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS) (Parenthetical) - USD ($) $ in Thousands	3 Months Ended				9 Months Ended
	Sep. 30, 2015		Sep. 30, 2014		Sep. 30, 2015	Sep. 30, 2014
Components of net revenue:
License fees	$ 7,049		$ 5,925		$ 21,259	$ 21,168
Service revenue	23,774		28,232		74,115	99,538
Net revenue	30,823		34,157	[1]	95,374	120,706
Components of cost of revenue:
License fees	1,877		2,044		5,048	6,426
Service revenue	16,213		16,884		49,421	52,074
Cost of revenue	18,090	[2]	18,928	[2]	54,469	58,500
Extinguishment of liability	$ 0		$ 0		$ 0	$ (10,580)
[1]	Quarters ended September 30, 2015 quarter ended September 30, 2015Components of Revenue License Fees7,049 5,925Service Revenue23,774 28,232Net Revenue30,823 34,157 9 months ended September 30, 2015 September 30, 2014Components of Revenue License Fees$21,259 $21,168Service Revenue74,115 99,538Net Revenue$95,374 $120,706
[2]	Components of Cost of RevenueSeptember 30, 2015 September 30, 2014 License Fees1,877 2,044 Service Revenue16,213 16,884 Net Revenue Costs18,090 18,928 9 months ended September 30, 2015 September 30, 2014Components of Cost of Revenue License Fees$5,048 $6,426Service Revenue49,421 52,074Net Revenue Costs$54,469 $58,500

CONDENSED CONSOLIDATED STATEME6

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014
Cash flows from operating activities:
Net income (loss)	$ (73,434)	$ (50,977)
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:
Depreciation and amortization	7,952	8,876
Stock-based compensation	3,761	4,158
Equity in net loss of Rhapsody	13,831	4,170
Accrued loss (gain) on excess office facilities	2,208	480
Deferred income taxes, net	(1,531)	(64)
Loss (gain) on investments, net	222	(2,371)
Realized translation gain	(264)	(48)
Extinguishment of liability	0	(10,580)
Fair value of warrants, net of mark to market adjustments	(1,078)	0
Net change in certain operating assets and liabilities:
Trade accounts receivable	(6,279)	6,553
Prepaid expenses and other assets	3,851	1,353
Accounts payable	(1,628)	(1,606)
Accrued and other liabilities	(3,580)	(5,586)
Net cash provided by (used in) operating activities	(55,969)	(45,642)
Cash flows from investing activities:
Purchases of equipment, software, and leasehold improvements	(1,110)	(2,054)
Proceeds from sale of available for sale securities	459	2,754
Purchases of short-term investments	(52,475)	(63,574)
Proceeds from sales and maturities of short-term investments	60,516	74,546
Acquisitions, net of cash acquired	(161)	(733)
Advance to Rhapsody	(5,000)	0
Repayment from Rhapsody	5,000	0
Proceeds from the sale of Slingo and social casino business	10,000	0
Other	0	(467)
Net cash provided by (used in) investing activities	17,229	10,472
Cash flows from financing activities:
Proceeds from issuance of common stock (stock options and stock purchase plan)	297	641
Tax payments from shares withheld upon vesting of restricted stock	(69)	(403)
Payment of contingent consideration	0	(696)
Net cash provided by (used in) financing activities	228	(458)
Effect of exchange rate changes on cash and cash equivalents	(2,910)	(1,534)
Net increase (decrease) in cash and cash equivalents	(41,422)	(37,162)
Cash and cash equivalents, beginning of period	103,253	151,235
Cash and cash equivalents, end of period	61,831	114,073
Supplemental disclosure of cash flow information:
Cash received from income tax refunds	1,035	292
Cash paid for income taxes	1,136	1,457
Non-cash investing activities:
Increase (decrease) in accrued purchases of equipment, software, and leasehold improvements	(124)	(371)
Acquisition of intangible assets	$ 312	$ 0

Description of Business and Sum

Description of Business and Summary of Significant Accounting Policies	9 Months Ended
	Sep. 30, 2015
Accounting Policies [Abstract]
Description of Business and Summary of Significant Accounting Policies	Note 1 Description of Business and Summary of Significant Accounting Policies Description of Business. RealNetworks, Inc. and subsidiaries is a leading global provider of network-delivered digital media applications and services that make it easy to manage, play and share digital media. The Company also develops and markets software products and services that enable the creation, distribution and consumption of digital media, including audio and video. Inherent in our business are various risks and uncertainties, including a limited history of certain of our product and service offerings. RealNetworks' success will depend on the acceptance of our technology, products and services and the ability to generate related revenue. In this Quarterly Report on Form 10-Q (10-Q or Report), RealNetworks, Inc. and Subsidiaries is referred to as “RealNetworks”, the “Company”, “we”, “us”, or “our”. "RealPlayer" and other trademarks of ours appearing in this report are our property. Basis of Presentation. The unaudited condensed consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries. Intercompany balances and transactions have been eliminated in consolidation. The unaudited condensed consolidated financial statements reflect all adjustments, consisting only of normal, recurring adjustments that, in the opinion of management, are necessary for a fair presentation of the results of operations for the periods presented. Operating results for the quarter and nine months ended September 30, 2015 are not necessarily indicative of the results that may be expected for any subsequent period or for the year ending December 31, 2015 . Certain information and disclosures normally included in financial statements prepared in conformity with accounting principles generally accepted in the United States of America (GAAP) have been condensed or omitted pursuant to the rules and regulations of the Securities and Exchange Commission (SEC). These unaudited condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and related notes included in our Annual Report on Form 10-K for the year ended December 31, 2014 (the 10-K). Use of Estimates. The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.

Recent Accounting Pronouncement

Recent Accounting Pronouncements	9 Months Ended
	Sep. 30, 2015
Accounting Changes and Error Corrections [Abstract]
Recent Accounting Pronouncements	Note 2 Recent Accounting Pronouncements In August 2014, the Financial Accounting Standards Board (FASB) issued a new standard, "Disclosure of Uncertainties About an Entity's Ability to Continue as a Going Concern". This standard provides guidance around management's responsibility to evaluate whether there is substantial doubt about an entity's ability to continue as a going concern and to provide related footnote disclosures in certain circumstances. The new guidance is effective for all annual and interim periods ending after December 15, 2016. We are currently evaluating the impact, if any, the adoption of this standard will have on our consolidated financial statements. In May 2014, the FASB issued new revenue recognition guidance. The guidance will require an entity to recognize the amount of revenue to which it expects to be entitled for the transfer of promised goods or services to customers. The new guidance will replace most existing revenue recognition guidance in U.S. GAAP when it becomes effective. The new guidance is effective for us on January 1, 2018; with early adoption permitted beginning January 1, 2017. The guidance permits the use of either the retrospective or cumulative effect transition method. We are evaluating the effect that the guidance will have on our consolidated financial statements and related disclosures. We have not yet selected a transition method nor determined the effect of the standard on our ongoing financial reporting. There have been no other recent accounting pronouncements or changes in accounting pronouncements to be implemented that are of significance or potential significance to RealNetworks.

Sale of Slingo and Social Casin

Sale of Slingo and Social Casino Business	9 Months Ended
	Sep. 30, 2015
Discontinued Operations and Disposal Groups [Abstract]
Sale of Slingo and Social Casino Business	Note 3 Sale of Slingo and Social Casino Business On July 24, 2015, we entered into an agreement to sell the Slingo and social casino portion of our games business to Gaming Realms plc for $18.0 million . Of this amount, $10.0 million of the total consideration was paid in cash at closing and the remaining $8.0 million will be payable either all in cash or a mix of cash and Gaming Realms plc stock, at our election, on the first and second anniversaries of the closing. The transaction closed on August 10, 2015. With the transaction, Gaming Realms plc assumed the operations of our Slingo and social casino businesses, including substantially all of the related assets and liabilities, as well as the stock of Backstage Technologies Incorporated. The disposed assets and liabilities consisted of intangible assets of $5.7 million , net property, plant and equipment of $0.3 million , and other net assets of $0.4 million , as well as a deferred tax liability of $1.6 million related to the indefinite-lived Slingo trade name, which is included as part of the intangible assets disposed of in the sale. Goodwill totaling $3.6 million was also disposed as part of the transaction based on the relative fair values of the business disposed of and the portion of the games reporting unit retained. As this sale does not represent a strategic shift in our business and we do not believe it will have a major impact on our operations and financial results, it does not meet the criteria for discontinued operations under GAAP. As such, we have recorded the related foreign currency gain of $0.5 million in “Other income and expense” on the Statement of Operations. In addition, we have recognized an income tax benefit of $1.6 million from the reversal of a Slingo deferred tax liability as described above. Based on several factors, including the timing of the receipt of the remaining $8.0 million consideration, we have deferred the remaining gain of $8.0 million and will recognize that gain upon realization.

Stock-Based Compensation

Stock-Based Compensation	9 Months Ended
	Sep. 30, 2015
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Stock-Based Compensation	Note 4 Stock-Based Compensation Total stock-based compensation expense recognized in our unaudited condensed consolidated statements of operations and comprehensive income (loss) includes amounts related to stock options, restricted stock units, and employee stock purchase plans and was as follows (in thousands): Quarters Ended Nine Months Ended 2015 2014 2015 2014 Total stock-based compensation expense $ 1,178 $ 1,148 $ 3,761 $ 4,158 The fair value of options granted determined using the Black-Scholes model used the following weighted-average assumptions: Quarters Ended Nine Months Ended 2015 2014 2015 2014 Expected dividend yield 0 % 0 % 0 % 0 % Risk-free interest rate 1.27 % 1.30 % 1.26 % 1.20 % Expected life (years) 3.8 4.5 4.3 3.9 Volatility 35 % 42 % 37 % 40 % The total stock-based compensation amounts for 2015 and 2014 disclosed above are recorded in their respective line items within operating expenses in the unaudited condensed consolidated statements of operations and comprehensive income (loss). As of September 30, 2015 , $11.0 million of total unrecognized compensation cost, net of estimated forfeitures, related to stock awards. The unrecognized compensation cost is expected to be recognized over a weighted-average period of approximately 2 years.

Rhapsody Joint Venture

Rhapsody Joint Venture	9 Months Ended
	Sep. 30, 2015
Equity Method Investments and Joint Ventures [Abstract]
Rhapsody Joint Venture	Note 5 Rhapsody Joint Venture As of September 30, 2015 we owned approximately 43% of the issued and outstanding stock of Rhapsody and account for our investment using the equity method of accounting. Rhapsody was initially formed in 2007 as a joint venture between RealNetworks and MTV Networks, a division of Viacom International Inc. (MTVN), to own and operate a business-to-consumer digital audio music service known as Rhapsody. Following certain restructuring transactions effective March 31, 2010, we began accounting for our investment in Rhapsody using the equity method of accounting. As part of the 2010 restructuring transactions, RealNetworks contributed $18.0 million in cash, the Rhapsody brand and certain other assets, including content licenses, in exchange for shares of convertible preferred stock of Rhapsody, carrying a $10.0 million preference upon certain liquidation events. We recorded our share of losses of Rhapsody of $0.7 million and $13.8 million for the quarter and nine months ended September 30, 2015 , and $1.5 million and $4.2 million for the quarter and nine months ended September 30, 2014 . Because of the $10.0 million liquidation preference on the preferred stock we hold in Rhapsody, under the equity method of accounting we did not record any share of Rhapsody losses that would reduce our carrying value of Rhapsody, which is impacted by Rhapsody equity transactions, below $10.0 million , until Rhapsody's book value was reduced below $10.0 million which occurred in the first quarter of 2015. As of December 31, 2014, the carrying value of our Rhapsody equity investment was $10.0 million . As of September 30, 2015, the carrying value of our Rhapsody equity investment is zero, as we do not record any share of Rhapsody losses that would reduce our carrying value of Rhapsody below zero unless we commit to provide financial support for Rhapsody. In March 2015, RealNetworks extended a $5.0 million loan to Rhapsody, as did the other 43% owner of Rhapsody. The loans had original maturity dates of June 2018, or earlier, if Rhapsody's certain loan to an external strategic partner was repaid in full. The loans to Rhapsody bore interest at the greater of prime plus 5.25% or 9% per annum. During June 2015, Rhapsody's external strategic partner repaid half of its loan to Rhapsody and the maturity date of the second half was extended to August 2015. In August 2015, the second half of the loan to Rhapsody was repaid and Rhapsody then repaid its loan to us and the other 43% owner in full. In addition, Rhapsody paid approximately $0.2 million of accrued interest to us in September 2015. Summarized financial information for Rhapsody, which represents 100% of their financial information, is as follows (in thousands): Quarters Ended Nine Months Ended 2015 2014 2015 2014 Net revenue $ 52,769 $ 44,148 $ 149,156 $ 128,578 Gross profit 9,552 7,739 25,395 24,730 Net loss (6,335 ) (7,965 ) (27,320 ) (14,312 )

Fair Value Measurements

Fair Value Measurements	9 Months Ended
	Sep. 30, 2015
Fair Value Disclosures [Abstract]
Fair Value Measurements	Note 6 Fair Value Measurements Items Measured at Fair Value on a Recurring Basis The following table presents information about our financial assets that have been measured at fair value on a recurring basis as of September 30, 2015 and December 31, 2014 , and indicates the fair value hierarchy of the valuation inputs utilized to determine such fair value (in thousands). Fair Value Measurements as of Amortized Cost as of September 30, 2015 September 30, 2015 Level 1 Level 2 Level 3 Total Cash and cash equivalents: Cash $ 36,321 $ — $ — $ 36,321 $ 36,321 Money market funds 1,064 — — 1,064 1,064 Corporate notes and bonds — 24,446 — 24,446 24,446 Total cash and cash equivalents 37,385 24,446 — 61,831 61,831 Short-term investments: Corporate notes and bonds — 49,812 — 49,812 49,822 U.S. government agency securities 600 — — 600 600 Total short-term investments 600 49,812 — 50,412 50,422 Restricted cash equivalents and investments — 3,000 — 3,000 3,000 Equity investment in publicly traded securities 1,756 — — 1,756 362 Warrant issued by Rhapsody (included in Other assets) — — 1,078 1,078 — Total $ 39,741 $ 77,258 $ 1,078 $ 118,077 $ 115,615 Fair Value Measurements as of Amortized Cost as of December 31, 2014 December 31, 2014 Level 1 Level 2 Level 3 Total Cash and cash equivalents: Cash $ 30,105 $ — $ — $ 30,105 $ 30,105 Money market funds 11,629 — — 11,629 11,630 Corporate notes and bonds — 61,519 — 61,519 61,520 Total cash and cash equivalents 41,734 61,519 — 103,253 103,255 Short-term investments: Corporate notes and bonds — 51,453 — 51,453 51,438 U.S. government agency securities 7,000 — — 7,000 7,000 Total short-term investments 7,000 51,453 — 58,453 58,438 Restricted cash equivalents and investments — 3,000 — 3,000 3,000 Equity investment in publicly traded securities 2,676 — — 2,676 428 Total $ 51,410 $ 115,972 $ — $ 167,382 $ 165,121 Restricted cash equivalents and investments amounts as of September 30, 2015 , and December 31, 2014 relate to cash pledged as collateral against a letter of credit in connection with a lease agreement. Realized gains or losses on sales of short-term investment securities for the quarters and nine months ended September 30, 2015 and 2014 were not significant. Gross unrealized gains and gross unrealized losses on short-term investment securities as of September 30, 2015 and December 31, 2014 were also not significant. Investments with remaining contractual maturities of five years or less are classified as short-term because the investments are marketable and highly liquid, and we have the ability to utilize them for current operations. Contractual maturities of short-term investments as of September 30, 2015 (in thousands): Estimated Fair Value Within one year $ 49,064 Between one year and five years 1,348 Total short-term investments $ 50,412 Our equity investment in a publicly traded company as of September 30, 2015 and December 31, 2014 consisted of J-Stream Inc., a Japanese media services company. This equity investment is accounted for as available for sale. During the first half of 2015, we sold a portion of J-Stream shares we held, resulting in cash proceeds of $0.5 million and a pre-tax gain of $0.4 million . In March 2014, we sold a portion of the J-Stream shares we held, resulting in cash proceeds of $2.8 million and a pre-tax gain of $2.4 million . The gains on the sale of these securities are reported in Other income (expense), net, in the unaudited condensed consolidated statements of operations and comprehensive income (loss). In February 2015, Rhapsody issued warrants to purchase Rhapsody common shares to each of RealNetworks and Rhapsody's one other 43% stockholder. The warrants were issued as compensation for past services provided by RealNetworks and the other 43% stockholder, and both warrants covered the same number of underlying shares. The exercise price of the warrants was equal to the fair value of the underlying shares on the issuance date, and we used the Black-Scholes option-pricing model to calculate the fair value of the warrant, using an expected term of 5 years and expected volatility of 55% . On the date of issuance, we recognized and recorded the $1.2 million fair value of the warrant issued to RealNetworks within Other assets in the unaudited condensed consolidated balance sheets, and as an expense reduction within General and administrative expense in the unaudited condensed consolidated statements of operations and comprehensive income (loss). The warrants are free-standing derivatives and as such their fair value is determined each quarter using updated inputs in the Black-Scholes option-pricing model. During the nine months ended September 30, 2015 , the decrease in the fair value of the warrants from that originally recorded was approximately $0.1 million . Items Measured at Fair Value on a Non-recurring Basis Certain of our assets and liabilities are measured at estimated fair value on a non-recurring basis, using Level 3 inputs. These instruments are subject to fair value adjustments only in certain circumstances (for example, when there is evidence of impairment). During the nine months ended September 30, 2015 and 2014 , we did not record any impairments on those assets required to be measured at fair value on a non-recurring basis. See Note 12 , Lease Exit and Related Charges , for a discussion of the losses related to reductions in the use of RealNetworks' office space, which were recorded at the estimated fair value of remaining lease obligations, less expected sub-lease income.

Allowance for Doubtful Accounts

Allowance for Doubtful Accounts Receivable and Sales Returns	9 Months Ended
	Sep. 30, 2015
Receivables [Abstract]
Allowance for Doubtful Accounts Receivable and Sales Returns	Note 7 Allowance for Doubtful Accounts Receivable and Sales Returns Activity in the allowance for doubtful accounts receivable and sales returns (in thousands): Allowance For Doubtful Accounts Receivable Sales Returns Balances, December 31, 2014 $ 1,288 $ 353 Addition (reduction) to allowance 155 (213 ) Amounts written off (94 ) (7 ) Foreign currency translation (194 ) — Balances, September 30, 2015 $ 1,155 $ 133 One customer accounted for 50% and one customer accounted for 13% of trade accounts receivable as of September 30, 2015 . At December 31, 2014 , one customer accounted for 21% and one other customer accounted for 15% of trade accounts receivable. One customer accounted for 28% or $8.7 million of consolidated revenue during the quarter ended September 30, 2015 , which is reflected in our Mobile Entertainment segment. One customer accounted for 25% of consolidated revenue, or $24.2 million , during the nine months ended September 30, 2015 , also reflected in our Mobile Entertainment segment. One customer accounted for 24% of consolidated revenue, or $8.2 million , during the quarter ended September 30, 2014 and 20% , or $24.6 million , during the nine months ended September 30, 2014 and is reflected in our Mobile Entertainment segment.

Other Intangible Assets

Other Intangible Assets	9 Months Ended
	Sep. 30, 2015
Goodwill and Intangible Assets Disclosure [Abstract]
Other Intangible Assets	Note 8 Other Intangible Assets Other intangible assets (in thousands): September 30, 2015 December 31, 2014 Gross Amount Accumulated Amortization Net Gross Amount Accumulated Amortization Net Amortizing intangible assets: Customer relationships $ 30,074 $ 28,971 $ 1,103 $ 33,853 $ 31,643 $ 2,210 Developed technology 23,982 23,022 960 28,261 25,699 2,562 Patents, trademarks and tradenames 3,945 3,357 588 3,817 3,528 289 Service contracts 5,276 5,114 162 6,312 5,764 548 63,277 60,464 2,813 72,243 66,634 5,609 Non-amortizing intangible assets: Trademarks and tradenames — — — 4,500 — 4,500 Total $ 63,277 $ 60,464 $ 2,813 $ 76,743 $ 66,634 $ 10,109 An asset purchase relating to our Games business was completed in the first quarter of 2015 and resulted in an intangible asset of $0.5 million being recorded. As discussed in Note 3 Sale of Slingo and Social Casino Business , $5.7 million worth of intangible assets, net, related to the third quarter of 2015 sale of our Slingo and social casino portion of our games business. No impairments of other intangible assets were recognized in either of the nine months ended September 30, 2015 or 2014 .

Goodwill

Goodwill	9 Months Ended
	Sep. 30, 2015
Goodwill and Intangible Assets Disclosure [Abstract]
Goodwill	Note 9 Goodwill Changes in goodwill (in thousands): Balance, December 31, 2014 $ 17,355 Decreases due to current year disposals (3,620 ) Effects of foreign currency translation (634 ) Balance, September 30, 2015 $ 13,101 Goodwill by segment (in thousands): September 30, RealPlayer Group $ 955 Mobile Entertainment 1,848 Games 10,298 Total goodwill $ 13,101 No impairment of goodwill was recognized in either of the nine months ended September 30, 2015 or in 2014 .

Accrued and Other Liabilities

Accrued and Other Liabilities	9 Months Ended
	Sep. 30, 2015
Payables and Accruals [Abstract]
Accrued and Other Liabilities	Note 10 Accrued and Other Current Liabilities Accrued and other current liabilities (in thousands): September 30, 2015 December 31, 2014 Royalties and other fulfillment costs $ 3,672 $ 4,868 Employee compensation, commissions and benefits 8,134 7,711 Sales, VAT and other taxes payable 5,744 5,896 Other 6,340 6,811 Total accrued and other current liabilities $ 23,890 $ 25,286

Restructuring Charges

Restructuring Charges	9 Months Ended
	Sep. 30, 2015
Restructuring and Related Activities [Abstract]
Restructuring Charges	Note 11 Restructuring Charges Restructuring and other charges in 2015 and 2014 consist of costs associated with the ongoing reorganization of our business operations and our ongoing expense re-alignment efforts. The expense amounts in both years relate primarily to severance costs due to workforce reductions. On November 4, 2015, we commenced the elimination of approximately 60 positions worldwide and recorded $2.3 million in charges associated with this reduction in force in the quarter ended September 30, 2015. Restructuring charges are as follows (in thousands): Employee Separation Costs Costs incurred and charged to expense for the nine months ended September 30, 2015 $ 5,563 Costs incurred and charged to expense for the nine months ended September 30, 2014 $ 3,805 Changes to the accrued restructuring liability (which is included in Accrued and other current liabilities) for 2015 (in thousands) are as follows: Employee Separation Costs Accrued liability at December 31, 2014 $ 449 Costs incurred and charged to expense for the nine months ended September 30, 2015 5,563 Cash payments (2,840 ) Accrued liability at September 30, 2015 $ 3,172

Lease Exit and Related Charges

Lease Exit and Related Charges	9 Months Ended
	Sep. 30, 2015
Disclosure Changes To Accrued Loss On Excess Office Facilities [Abstract]
Lease Exit and Related Charges	Note 12 Lease Exit and Related Charges As a result of the reduction in use of RealNetworks' office space, lease exit and related charges have been recognized representing rent and contractual operating expenses over the remaining life of the leases. In the quarter ended September 30, 2015 , we recorded $2.1 million of losses relating to an approximate 43% reduction of office space at our corporate headquarters in Seattle, Washington. We continue to regularly evaluate the market for office space. If the market for such space changes further in future periods, we may have to revise our estimates which may result in future adjustments to expense for excess office facilities. Changes to accrued lease exit and related charges (which is included in Accrued and other current liabilities) for 2015 (in thousands) are as follows: Accrued loss at December 31, 2014 $ 234 Additions and adjustments to the lease loss accrual, including estimated sublease income 2,764 Less amounts paid, net of sublease amounts (240 ) Accrued loss at September 30, 2015 2,758 Less current portion (included in Accrued and other current liabilities) (988 ) Accrued loss, non-current portion (included in Other long term liabilities) $ 1,770

Shareholders_ Equity

Shareholders’ Equity	9 Months Ended
	Sep. 30, 2015
Equity [Abstract]
Shareholders’ Equity	Note 13 Shareholders’ Equity Accumulated Other Comprehensive Income (Loss) Changes in components of accumulated other comprehensive income (in thousands): Quarters Ended Nine Months Ended 2015 2014 2015 2014 Investments Accumulated other comprehensive income (loss), beginning of period $ 1,967 $ 2,784 $ 2,252 $ 6,397 Unrealized gains (losses), net of tax effects of $(56), $0, $0 and $0 (596 ) (323 ) (488 ) (1,565 ) Reclassification adjustments for losses (gains) included in other income (expense), net of tax effects of $0, $0, $(1) and $(4) — — (393 ) (2,371 ) Net current period other comprehensive income (loss) (596 ) (323 ) (881 ) (3,936 ) Accumulated other comprehensive income (loss) balance, end of period $ 1,371 $ 2,461 $ 1,371 $ 2,461 Foreign currency translation Accumulated other comprehensive income (loss), beginning of period $ (59,501 ) $ (53,901 ) $ (57,504 ) $ (54,092 ) Translation adjustments (880 ) (2,338 ) (2,877 ) (2,099 ) Reclassification adjustments for losses (gains) included in other income (expense) (264 ) — (264 ) (48 ) Net current period other comprehensive income (loss) (1,144 ) (2,338 ) (3,141 ) (2,147 ) Accumulated other comprehensive income (loss) balance, end of period $ (60,645 ) $ (56,239 ) $ (60,645 ) $ (56,239 ) Total accumulated other comprehensive income (loss), end of period $ (59,274 ) $ (53,778 ) $ (59,274 ) $ (53,778 )

Income Taxes

Income Taxes	9 Months Ended
	Sep. 30, 2015
Income Tax Disclosure [Abstract]
Income Taxes	Note 14 Income Taxes As of September 30, 2015 , there have been no material changes to RealNetworks’ uncertain tax positions disclosures as provided in Note 14 of the 2014 10-K. However, as a result of the closure of our United States federal audit for the year ended December 31, 2012, we anticipate a decrease in the Company’s total unrecognized tax benefit by an amount up to $3.3 million within the next 12 months, which will have no impact on the financial statements since the Company maintains a valuation allowance on its deferred tax assets. We file numerous consolidated and separate income tax returns in the U.S. including federal, state and local, as well as foreign jurisdictions. With few exceptions, we are no longer subject to U.S. federal income tax examinations for tax years before 2013 or state, local, or foreign income tax examinations for years before 1993. We are currently under audit by various states and foreign jurisdictions for certain tax years subsequent to 1993.

Earnings Per Share

Earnings Per Share	9 Months Ended
	Sep. 30, 2015
Earnings Per Share [Abstract]
Earnings Per Share	Note 15 Earnings (Loss) Per Share Basic net income (loss) per share (EPS) is computed by dividing net income (loss) by the weighted average number of common shares outstanding during the period. Diluted EPS is computed by dividing net income (loss) by the weighted average number of common and dilutive potential common shares outstanding during the period. Basic and diluted EPS (in thousands, except per share amounts): Quarters Ended Nine Months Ended 2015 2014 2015 2014 Net income (loss) $ (21,184 ) $ (22,178 ) $ (73,434 ) $ (50,977 ) Weighted average common shares outstanding used to compute basic EPS 36,191 36,003 36,134 35,912 Dilutive effect of stock based awards — — — — Weighted average common shares outstanding used to compute diluted EPS 36,191 36,003 36,134 35,912 Basic EPS $ (0.59 ) $ (0.62 ) $ (2.03 ) $ (1.42 ) Diluted EPS $ (0.59 ) $ (0.62 ) $ (2.03 ) $ (1.42 ) During the quarter and nine months ended September 30, 2015 , 5.7 million and 6.0 million shares of common stock, respectively, of potentially issuable shares from stock awards were excluded from the calculation of diluted EPS because of their antidilutive effect. During the quarter and nine months ended September 30, 2014 , 6.3 million and 6.2 million shares of common stock, respectively, of potentially issuable shares from stock awards were excluded from the calculation of diluted EPS because of their antidilutive effect.

Commitments and Contingencies

Commitments and Contingencies	9 Months Ended
	Sep. 30, 2015
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	Note 16 Commitments and Contingencies We may become subject to legal proceedings, governmental investigations and claims in the ordinary course of business, including employment claims, contract-related claims, and claims of alleged infringement of third-party patents, trademarks and other intellectual property rights. Such claims, even if not meritorious, could force us to expend significant financial and managerial resources. In addition, given the broad distribution of some of our consumer products, any individual claim related to those products could give rise to liabilities that may be material to us. In the event of a determination adverse to us, we may incur substantial monetary liability, and/or be required to change our business practices. Either of these could have a material adverse effect on our consolidated financial statements.

Guarantees

Guarantees	9 Months Ended
	Sep. 30, 2015
Guarantees [Abstract]
Guarantees	Note 17 Guarantees In the ordinary course of business, RealNetworks is subject to potential obligations for standard warranty and indemnification provisions that are contained within many of our customer license and service agreements. Our warranty provisions are consistent with those prevalent in our industry, and we do not have a history of incurring losses on warranties; therefore, we do not maintain accruals for warranty-related obligations. With regard to indemnification provisions, nearly all of our carrier contracts obligate us to indemnify our carrier customers for certain liabilities that may be incurred by them. We have received in the past, and may receive in the future, claims for indemnification from carrier customers. In relation to the patents and other technology assets we sold to Intel in the second quarter of 2012, we have specific obligations to indemnify Intel for breaches of the representations and warranties that we made and covenants that we agreed to in the asset purchase agreement for certain potential future intellectual property infringement claims brought by third parties against Intel. The amount of any potential liabilities related to our indemnification obligations to Intel will not be determined until a claim has been made, but we are obligated to indemnify Intel up to the amount of the gross purchase price that we received in the sale.

Segment Information

Segment Information	9 Months Ended
	Sep. 30, 2015
Segment Reporting [Abstract]
Segment Information	Note 18 Segment Information We have three reportable segments: (1) RealPlayer Group, which includes our RealTimes and RealPlayer Cloud products, our RealPlayer media player software and related products and our SuperPass service; (2) Mobile Entertainment, which includes our SaaS services, our LISTEN product, and the residual components of our Helix business; and (3) Games, which includes all our games-related businesses, including licenses, online games subscription services, advertising on games sites and social network sites, microtransactions from online and social games, and mobile games. See Note 3 , Sale of Slingo and Social Casino Business , for information on the third quarter 2015 sale of this business. We allocate certain corporate expenses which are directly attributable to supporting the business to our reportable segments. These corporate expenses include but are not limited to a portion of finance, legal, human resources and headquarters facilities. Remaining expenses, which are not directly attributable to supporting the business, are reported as corporate items. Also reported in our corporate segment were restructuring charges as well as lease exit and related charges, and in 2014 the extinguishment of the liability associated with our historical music business. RealNetworks reports three reportable segments based on factors such as how we manage our operations and how our Chief Operating Decision Maker reviews results. Our Chief Operating Decision Maker is considered to be the CEO Staff (CEOS), which includes the Chief Executive Officer, Chief Financial Officer, our Presidents and General Counsel. The CEOS reviews financial information presented on both a consolidated basis and on a business segment basis. The accounting policies used to derive segment results are the same as those described in Note 1, Description of Business and Summary of Significant Accounting Policies, in the 10-K. Segment results for the quarters and nine months ended September 30, 2015 and 2014 (in thousands): RealPlayer Group Quarters Ended Nine Months Ended 2015 2014 2015 2014 Revenue $ 6,565 $ 6,565 $ 21,922 $ 30,336 Cost of revenue 3,902 3,566 12,331 10,704 Gross profit 2,663 2,999 9,591 19,632 Operating expenses 11,492 12,392 36,868 42,668 Operating income (loss) $ (8,829 ) $ (9,393 ) $ (27,277 ) $ (23,036 ) Mobile Entertainment Quarters Ended Nine Months Ended 2015 2014 2015 2014 Revenue $ 16,414 $ 19,190 $ 49,409 $ 62,285 Cost of revenue 11,518 12,626 34,103 38,874 Gross profit 4,896 6,564 15,306 23,411 Operating expenses 5,219 7,086 16,153 26,126 Operating income (loss) $ (323 ) $ (522 ) $ (847 ) $ (2,715 ) Games Quarters Ended Nine Months Ended 2015 2014 2015 2014 Revenue $ 7,844 $ 8,402 $ 24,043 $ 28,085 Cost of revenue 2,513 2,573 7,593 8,419 Gross profit 5,331 5,829 16,450 19,666 Operating expenses 6,431 8,658 23,833 27,193 Operating income (loss) $ (1,100 ) $ (2,829 ) $ (7,383 ) $ (7,527 ) Corporate Quarters Ended Nine Months Ended 2015 2014 2015 2014 Cost of revenue $ 157 $ 163 $ 442 $ 503 Extinguishment of liability — — — (10,580 ) Operating expenses 11,553 7,856 25,732 25,270 Operating income (loss) $ (11,710 ) $ (8,019 ) $ (26,174 ) $ (15,193 ) Our customers consist primarily of consumers and corporations located in the U.S., Europe, Republic of Korea and various foreign countries (Rest of the World). Revenue by geographic region (in thousands): Quarters Ended Nine Months Ended 2015 2014 2015 2014 United States $ 11,460 $ 12,280 $ 36,112 $ 47,800 Europe 3,670 5,749 11,561 21,129 Republic of Korea 9,569 9,728 28,268 31,114 Rest of the World 6,124 6,400 19,433 20,663 Total net revenue $ 30,823 $ 34,157 $ 95,374 $ 120,706 Long-lived assets (which consist of equipment, software, leasehold improvements, other intangible assets, and goodwill) by geographic region (in thousands) are as follows: September 30, December 31, United States $ 18,303 $ 33,421 Europe 5,617 6,696 Republic of Korea 324 547 Rest of the World 2,346 3,048 Total long-lived assets $ 26,590 $ 43,712

Related Party Transactions

Related Party Transactions	9 Months Ended
	Sep. 30, 2015
Related Party Transactions [Abstract]
Related Party Transactions	Note 19 Related Party Transactions See Note 5 , Rhapsody Joint Venture , and Note 6 , Fair Value Measurements , for details on transactions involving Rhapsody.

Description of Business and S26

Description of Business and Summary of Significant Accounting Policies (Policies)	9 Months Ended
	Sep. 30, 2015
Accounting Policies [Abstract]
Description of Business	Description of Business. RealNetworks, Inc. and subsidiaries is a leading global provider of network-delivered digital media applications and services that make it easy to manage, play and share digital media. The Company also develops and markets software products and services that enable the creation, distribution and consumption of digital media, including audio and video. Inherent in our business are various risks and uncertainties, including a limited history of certain of our product and service offerings. RealNetworks' success will depend on the acceptance of our technology, products and services and the ability to generate related revenue. In this Quarterly Report on Form 10-Q (10-Q or Report), RealNetworks, Inc. and Subsidiaries is referred to as “RealNetworks”, the “Company”, “we”, “us”, or “our”.
Basis of Presentation	Basis of Presentation. The unaudited condensed consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries. Intercompany balances and transactions have been eliminated in consolidation. The unaudited condensed consolidated financial statements reflect all adjustments, consisting only of normal, recurring adjustments that, in the opinion of management, are necessary for a fair presentation of the results of operations for the periods presented. Operating results for the quarter and nine months ended September 30, 2015 are not necessarily indicative of the results that may be expected for any subsequent period or for the year ending December 31, 2015 . Certain information and disclosures normally included in financial statements prepared in conformity with accounting principles generally accepted in the United States of America (GAAP) have been condensed or omitted pursuant to the rules and regulations of the Securities and Exchange Commission (SEC). These unaudited condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and related notes included in our Annual Report on Form 10-K for the year ended December 31, 2014 (the 10-K).
Use of Estimates	Use of Estimates. The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.

Stock-Based Compensation (Table

Stock-Based Compensation (Tables)	9 Months Ended
	Sep. 30, 2015
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Stock-Based Compensation Expense	Total stock-based compensation expense recognized in our unaudited condensed consolidated statements of operations and comprehensive income (loss) includes amounts related to stock options, restricted stock units, and employee stock purchase plans and was as follows (in thousands): Quarters Ended Nine Months Ended 2015 2014 2015 2014 Total stock-based compensation expense $ 1,178 $ 1,148 $ 3,761 $ 4,158
Weighted-Average Assumptions Used to Determine Fair Value of Options Granted	The fair value of options granted determined using the Black-Scholes model used the following weighted-average assumptions: Quarters Ended Nine Months Ended 2015 2014 2015 2014 Expected dividend yield 0 % 0 % 0 % 0 % Risk-free interest rate 1.27 % 1.30 % 1.26 % 1.20 % Expected life (years) 3.8 4.5 4.3 3.9 Volatility 35 % 42 % 37 % 40 %

Rhapsody Joint Venture (Tables)

Rhapsody Joint Venture (Tables)	9 Months Ended
	Sep. 30, 2015
Equity Method Investments and Joint Ventures [Abstract]
Summarized Financial Operating Information for Rhapsody	Summarized financial information for Rhapsody, which represents 100% of their financial information, is as follows (in thousands): Quarters Ended Nine Months Ended 2015 2014 2015 2014 Net revenue $ 52,769 $ 44,148 $ 149,156 $ 128,578 Gross profit 9,552 7,739 25,395 24,730 Net loss (6,335 ) (7,965 ) (27,320 ) (14,312 )

Fair Value Measurements (Tables

Fair Value Measurements (Tables)	9 Months Ended
	Sep. 30, 2015
Fair Value Disclosures [Abstract]
Financial Assets Measured at Fair Value on a Recurring Basis	The following table presents information about our financial assets that have been measured at fair value on a recurring basis as of September 30, 2015 and December 31, 2014 , and indicates the fair value hierarchy of the valuation inputs utilized to determine such fair value (in thousands). Fair Value Measurements as of Amortized Cost as of September 30, 2015 September 30, 2015 Level 1 Level 2 Level 3 Total Cash and cash equivalents: Cash $ 36,321 $ — $ — $ 36,321 $ 36,321 Money market funds 1,064 — — 1,064 1,064 Corporate notes and bonds — 24,446 — 24,446 24,446 Total cash and cash equivalents 37,385 24,446 — 61,831 61,831 Short-term investments: Corporate notes and bonds — 49,812 — 49,812 49,822 U.S. government agency securities 600 — — 600 600 Total short-term investments 600 49,812 — 50,412 50,422 Restricted cash equivalents and investments — 3,000 — 3,000 3,000 Equity investment in publicly traded securities 1,756 — — 1,756 362 Warrant issued by Rhapsody (included in Other assets) — — 1,078 1,078 — Total $ 39,741 $ 77,258 $ 1,078 $ 118,077 $ 115,615 Fair Value Measurements as of Amortized Cost as of December 31, 2014 December 31, 2014 Level 1 Level 2 Level 3 Total Cash and cash equivalents: Cash $ 30,105 $ — $ — $ 30,105 $ 30,105 Money market funds 11,629 — — 11,629 11,630 Corporate notes and bonds — 61,519 — 61,519 61,520 Total cash and cash equivalents 41,734 61,519 — 103,253 103,255 Short-term investments: Corporate notes and bonds — 51,453 — 51,453 51,438 U.S. government agency securities 7,000 — — 7,000 7,000 Total short-term investments 7,000 51,453 — 58,453 58,438 Restricted cash equivalents and investments — 3,000 — 3,000 3,000 Equity investment in publicly traded securities 2,676 — — 2,676 428 Total $ 51,410 $ 115,972 $ — $ 167,382 $ 165,121
Schedule of Contractual Maturity Date	Contractual maturities of short-term investments as of September 30, 2015 (in thousands): Estimated Fair Value Within one year $ 49,064 Between one year and five years 1,348 Total short-term investments $ 50,412

Allowance for Doubtful Accoun30

Allowance for Doubtful Accounts Receivable and Sales Returns (Tables)	9 Months Ended
	Sep. 30, 2015
Receivables [Abstract]
Activity in Allowance for Doubtful Accounts Receivable and Sales Returns	Activity in the allowance for doubtful accounts receivable and sales returns (in thousands): Allowance For Doubtful Accounts Receivable Sales Returns Balances, December 31, 2014 $ 1,288 $ 353 Addition (reduction) to allowance 155 (213 ) Amounts written off (94 ) (7 ) Foreign currency translation (194 ) — Balances, September 30, 2015 $ 1,155 $ 133

Other Intangible Assets (Tables

Other Intangible Assets (Tables)	9 Months Ended
	Sep. 30, 2015
Goodwill and Intangible Assets Disclosure [Abstract]
Other Intangible Assets	Other intangible assets (in thousands): September 30, 2015 December 31, 2014 Gross Amount Accumulated Amortization Net Gross Amount Accumulated Amortization Net Amortizing intangible assets: Customer relationships $ 30,074 $ 28,971 $ 1,103 $ 33,853 $ 31,643 $ 2,210 Developed technology 23,982 23,022 960 28,261 25,699 2,562 Patents, trademarks and tradenames 3,945 3,357 588 3,817 3,528 289 Service contracts 5,276 5,114 162 6,312 5,764 548 63,277 60,464 2,813 72,243 66,634 5,609 Non-amortizing intangible assets: Trademarks and tradenames — — — 4,500 — 4,500 Total $ 63,277 $ 60,464 $ 2,813 $ 76,743 $ 66,634 $ 10,109

Goodwill (Tables)

Goodwill (Tables)	9 Months Ended
	Sep. 30, 2015
Goodwill and Intangible Assets Disclosure [Abstract]
Changes in Goodwill	Changes in goodwill (in thousands): Balance, December 31, 2014 $ 17,355 Decreases due to current year disposals (3,620 ) Effects of foreign currency translation (634 ) Balance, September 30, 2015 $ 13,101
Goodwill Assigned by Segments	Goodwill by segment (in thousands): September 30, RealPlayer Group $ 955 Mobile Entertainment 1,848 Games 10,298 Total goodwill $ 13,101

Accrued and Other Liabilities (

Accrued and Other Liabilities (Tables)	9 Months Ended
	Sep. 30, 2015
Payables and Accruals [Abstract]
Accrued and Other Liabilities	Accrued and other current liabilities (in thousands): September 30, 2015 December 31, 2014 Royalties and other fulfillment costs $ 3,672 $ 4,868 Employee compensation, commissions and benefits 8,134 7,711 Sales, VAT and other taxes payable 5,744 5,896 Other 6,340 6,811 Total accrued and other current liabilities $ 23,890 $ 25,286

Restructuring Charges (Tables)

Restructuring Charges (Tables)	9 Months Ended
	Sep. 30, 2015
Restructuring and Related Activities [Abstract]
Schedule of Restructuring Charges by Type of Cost	Restructuring charges are as follows (in thousands): Employee Separation Costs Costs incurred and charged to expense for the nine months ended September 30, 2015 $ 5,563 Costs incurred and charged to expense for the nine months ended September 30, 2014 $ 3,805 Changes to the accrued restructuring liability (which is included in Accrued and other current liabilities) for 2015 (in thousands) are as follows: Employee Separation Costs Accrued liability at December 31, 2014 $ 449 Costs incurred and charged to expense for the nine months ended September 30, 2015 5,563 Cash payments (2,840 ) Accrued liability at September 30, 2015 $ 3,172

Lease Exit and Related Charges

Lease Exit and Related Charges (Tables)	9 Months Ended
	Sep. 30, 2015
Disclosure Changes To Accrued Loss On Excess Office Facilities [Abstract]
Changes to Accrued Loss on Excess Office Facilities	Changes to accrued lease exit and related charges (which is included in Accrued and other current liabilities) for 2015 (in thousands) are as follows: Accrued loss at December 31, 2014 $ 234 Additions and adjustments to the lease loss accrual, including estimated sublease income 2,764 Less amounts paid, net of sublease amounts (240 ) Accrued loss at September 30, 2015 2,758 Less current portion (included in Accrued and other current liabilities) (988 ) Accrued loss, non-current portion (included in Other long term liabilities) $ 1,770

Shareholders_ Equity (Tables)

Shareholders’ Equity (Tables)	9 Months Ended
	Sep. 30, 2015
Equity [Abstract]
Schedule of Accumulated Other Comprehensive Income (Loss)	Changes in components of accumulated other comprehensive income (in thousands): Quarters Ended Nine Months Ended 2015 2014 2015 2014 Investments Accumulated other comprehensive income (loss), beginning of period $ 1,967 $ 2,784 $ 2,252 $ 6,397 Unrealized gains (losses), net of tax effects of $(56), $0, $0 and $0 (596 ) (323 ) (488 ) (1,565 ) Reclassification adjustments for losses (gains) included in other income (expense), net of tax effects of $0, $0, $(1) and $(4) — — (393 ) (2,371 ) Net current period other comprehensive income (loss) (596 ) (323 ) (881 ) (3,936 ) Accumulated other comprehensive income (loss) balance, end of period $ 1,371 $ 2,461 $ 1,371 $ 2,461 Foreign currency translation Accumulated other comprehensive income (loss), beginning of period $ (59,501 ) $ (53,901 ) $ (57,504 ) $ (54,092 ) Translation adjustments (880 ) (2,338 ) (2,877 ) (2,099 ) Reclassification adjustments for losses (gains) included in other income (expense) (264 ) — (264 ) (48 ) Net current period other comprehensive income (loss) (1,144 ) (2,338 ) (3,141 ) (2,147 ) Accumulated other comprehensive income (loss) balance, end of period $ (60,645 ) $ (56,239 ) $ (60,645 ) $ (56,239 ) Total accumulated other comprehensive income (loss), end of period $ (59,274 ) $ (53,778 ) $ (59,274 ) $ (53,778 )

Earnings Per Share (Tables)

Earnings Per Share (Tables)	9 Months Ended
	Sep. 30, 2015
Earnings Per Share [Abstract]
Calculation of Basic and Diluted Earnings Per Share	Basic and diluted EPS (in thousands, except per share amounts): Quarters Ended Nine Months Ended 2015 2014 2015 2014 Net income (loss) $ (21,184 ) $ (22,178 ) $ (73,434 ) $ (50,977 ) Weighted average common shares outstanding used to compute basic EPS 36,191 36,003 36,134 35,912 Dilutive effect of stock based awards — — — — Weighted average common shares outstanding used to compute diluted EPS 36,191 36,003 36,134 35,912 Basic EPS $ (0.59 ) $ (0.62 ) $ (2.03 ) $ (1.42 ) Diluted EPS $ (0.59 ) $ (0.62 ) $ (2.03 ) $ (1.42 )

Segment Information (Tables)

Segment Information (Tables)	9 Months Ended
	Sep. 30, 2015
Segment Reporting Information [Line Items]
Revenue by Geographic Region	Our customers consist primarily of consumers and corporations located in the U.S., Europe, Republic of Korea and various foreign countries (Rest of the World). Revenue by geographic region (in thousands): Quarters Ended Nine Months Ended 2015 2014 2015 2014 United States $ 11,460 $ 12,280 $ 36,112 $ 47,800 Europe 3,670 5,749 11,561 21,129 Republic of Korea 9,569 9,728 28,268 31,114 Rest of the World 6,124 6,400 19,433 20,663 Total net revenue $ 30,823 $ 34,157 $ 95,374 $ 120,706
Long-Lived Assets by Geographic Region	Long-lived assets (which consist of equipment, software, leasehold improvements, other intangible assets, and goodwill) by geographic region (in thousands) are as follows: September 30, December 31, United States $ 18,303 $ 33,421 Europe 5,617 6,696 Republic of Korea 324 547 Rest of the World 2,346 3,048 Total long-lived assets $ 26,590 $ 43,712
RealPlayer Group
Segment Reporting Information [Line Items]
Segment Results	RealPlayer Group Quarters Ended Nine Months Ended 2015 2014 2015 2014 Revenue $ 6,565 $ 6,565 $ 21,922 $ 30,336 Cost of revenue 3,902 3,566 12,331 10,704 Gross profit 2,663 2,999 9,591 19,632 Operating expenses 11,492 12,392 36,868 42,668 Operating income (loss) $ (8,829 ) $ (9,393 ) $ (27,277 ) $ (23,036 )
Mobile Entertainment
Segment Reporting Information [Line Items]
Segment Results	Mobile Entertainment Quarters Ended Nine Months Ended 2015 2014 2015 2014 Revenue $ 16,414 $ 19,190 $ 49,409 $ 62,285 Cost of revenue 11,518 12,626 34,103 38,874 Gross profit 4,896 6,564 15,306 23,411 Operating expenses 5,219 7,086 16,153 26,126 Operating income (loss) $ (323 ) $ (522 ) $ (847 ) $ (2,715 )
Games
Segment Reporting Information [Line Items]
Segment Results	Games Quarters Ended Nine Months Ended 2015 2014 2015 2014 Revenue $ 7,844 $ 8,402 $ 24,043 $ 28,085 Cost of revenue 2,513 2,573 7,593 8,419 Gross profit 5,331 5,829 16,450 19,666 Operating expenses 6,431 8,658 23,833 27,193 Operating income (loss) $ (1,100 ) $ (2,829 ) $ (7,383 ) $ (7,527 )
Corporate
Segment Reporting Information [Line Items]
Segment Results	Corporate Quarters Ended Nine Months Ended 2015 2014 2015 2014 Cost of revenue $ 157 $ 163 $ 442 $ 503 Extinguishment of liability — — — (10,580 ) Operating expenses 11,553 7,856 25,732 25,270 Operating income (loss) $ (11,710 ) $ (8,019 ) $ (26,174 ) $ (15,193 )

Sale of Slingo and Social Cas39

Sale of Slingo and Social Casino Business (Details) - USD ($) $ in Thousands	Jul. 24, 2015	Sep. 30, 2015	Sep. 30, 2014
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Cash consideration received		$ 10,000	$ 0
Slingo and Social Casino
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Sale price	$ 18,000
Cash consideration received	10,000
Consideration receivable	8,000
Intangible assets of disposal group	5,700
Net property, plant and equipment of disposal group	300
Other assets of disposal group	400
Deferred tax liabilities of disposal group	1,600
Goodwill of disposal group	3,600
Foreign currency gain recognized on disposal	500
Gain recognized due to reversal of deferred tax liability of disposal group	1,600
Deferred gain recognized	$ 8,000

Stock-Based Compensation (Recog

Stock-Based Compensation (Recognized Stock-Based Compensation Expense) (Detail) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Total stock-based compensation expense	$ 1,178	$ 1,148	$ 3,761	$ 4,158

Stock-Based Compensation (Weigh

Stock-Based Compensation (Weighted-Average Assumptions Used to Determine Fair Value of Options Granted) (Detail)	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Expected dividend yield (percent)	0.00%	0.00%	0.00%	0.00%
Risk-free interest rate (percent)	1.27%	1.30%	1.26%	1.20%
Expected life (years)	3 years 9 months	4 years 6 months	4 years 4 months	3 years 11 months
Volatility (percent)	35.00%	42.00%	37.00%	40.00%

Stock-Based Compensation (Addit

Stock-Based Compensation (Additional Information) (Detail) $ in Millions	9 Months Ended
	Sep. 30, 2015USD ($)
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Total unrecognized compensation cost	$ 11
Total unrecognized compensation cost, expected recognition period (in years)	2 years

Rhapsody Joint Venture (Additio

Rhapsody Joint Venture (Additional Information) (Detail) - USD ($) $ in Thousands	1 Months Ended		3 Months Ended			9 Months Ended
	Sep. 30, 2015	Mar. 31, 2015	Sep. 30, 2015	Sep. 30, 2014	Mar. 31, 2010	Sep. 30, 2015	Sep. 30, 2014	Dec. 31, 2014
Schedule of Equity Method Investments [Line Items]
Losses recorded in the operations of Rhapsody			$ 735	$ 1,530		$ 13,831	$ 4,170
Carrying value	$ 0		$ 0			0		$ 10,000
Loan to investee						$ 5,000	0
Rhapsody America LLC
Schedule of Equity Method Investments [Line Items]
Percentage of ownership interest in Rhapsody	43.00%		43.00%			43.00%
Payments for restructuring					$ 18,000
Liquidation preference amount	$ 10,000		$ 10,000			$ 10,000
Losses recorded in the operations of Rhapsody			$ 700	$ 1,500			$ 4,200
Carrying value								$ 10,000
Loan to investee		$ 5,000
Annual interest rate (percent)	9.00%		9.00%			9.00%
Interest payments received	$ 200
Rhapsody America LLC | Prime Rate
Schedule of Equity Method Investments [Line Items]
Variable rate (percent)		5.25%
Rhapsody America LLC | Other Owner
Schedule of Equity Method Investments [Line Items]
Percentage of ownership interest in Rhapsody held by third party	43.00%	43.00%	43.00%			43.00%

Rhapsody Joint Venture (Summari

Rhapsody Joint Venture (Summarized Financial Operating Information for Rhapsody) (Detail) - Rhapsody America LLC - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Schedule of Equity Method Investments [Line Items]
Net revenue	$ 52,769	$ 44,148	$ 149,156	$ 128,578
Gross profit	9,552	7,739	25,395	24,730
Net loss	$ (6,335)	$ (7,965)	$ (27,320)	$ (14,312)

Fair Value Measurements (Financ

Fair Value Measurements (Financial Assets Measured at Fair Value on a Recurring Basis) (Detail) - USD ($) $ in Thousands	Sep. 30, 2015	Dec. 31, 2014
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Financial assets fair value	$ 118,077	$ 167,382
Amortized Cost	115,615	165,121
Cash and Cash Equivalents
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Financial assets fair value	61,831	103,253
Amortized Cost	61,831	103,255
Cash and Cash Equivalents | Cash
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Financial assets fair value	36,321	30,105
Amortized Cost	36,321	30,105
Cash and Cash Equivalents | Money market funds
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Financial assets fair value	1,064	11,629
Amortized Cost	1,064	11,630
Cash and Cash Equivalents | Corporate notes and bonds
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Financial assets fair value	24,446	61,519
Amortized Cost	24,446	61,520
Short-term Investments
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Financial assets fair value	50,412	58,453
Amortized Cost	50,422	58,438
Short-term Investments | Corporate notes and bonds
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Financial assets fair value	49,812	51,453
Amortized Cost	49,822	51,438
Short-term Investments | U.S. government agency securities
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Financial assets fair value	600	7,000
Amortized Cost	600	7,000
Restricted cash equivalents and investments | Restricted cash equivalents and investments
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Financial assets fair value	3,000	3,000
Amortized Cost	3,000	3,000
Equity Investment in Publicly Traded Securities | Publicly Traded Investments
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Financial assets fair value	1,756	2,676
Amortized Cost	362	428
Related Party Transaction [Domain] | Warrants issued by Rhapsody
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Financial assets fair value	1,078
Amortized Cost	0
Level 1
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Financial assets fair value	39,741	51,410
Level 1 | Cash and Cash Equivalents
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Financial assets fair value	37,385	41,734
Level 1 | Cash and Cash Equivalents | Cash
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Financial assets fair value	36,321	30,105
Level 1 | Cash and Cash Equivalents | Money market funds
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Financial assets fair value	1,064	11,629
Level 1 | Cash and Cash Equivalents | Corporate notes and bonds
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Financial assets fair value	0	0
Level 1 | Short-term Investments
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Financial assets fair value	600	7,000
Level 1 | Short-term Investments | Corporate notes and bonds
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Financial assets fair value	0	0
Level 1 | Short-term Investments | U.S. government agency securities
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Financial assets fair value	600	7,000
Level 1 | Restricted cash equivalents and investments | Restricted cash equivalents and investments
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Financial assets fair value	0	0
Level 1 | Equity Investment in Publicly Traded Securities | Publicly Traded Investments
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Financial assets fair value	1,756	2,676
Level 1 | Related Party Transaction [Domain] | Warrants issued by Rhapsody
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Financial assets fair value	0
Level 2
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Financial assets fair value	77,258	115,972
Level 2 | Cash and Cash Equivalents
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Financial assets fair value	24,446	61,519
Level 2 | Cash and Cash Equivalents | Cash
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Financial assets fair value	0	0
Level 2 | Cash and Cash Equivalents | Money market funds
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Financial assets fair value	0	0
Level 2 | Cash and Cash Equivalents | Corporate notes and bonds
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Financial assets fair value	24,446	61,519
Level 2 | Short-term Investments
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Financial assets fair value	49,812	51,453
Level 2 | Short-term Investments | Corporate notes and bonds
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Financial assets fair value	49,812	51,453
Level 2 | Short-term Investments | U.S. government agency securities
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Financial assets fair value	0	0
Level 2 | Restricted cash equivalents and investments | Restricted cash equivalents and investments
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Financial assets fair value	3,000	3,000
Level 2 | Equity Investment in Publicly Traded Securities | Publicly Traded Investments
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Financial assets fair value	0	0
Level 2 | Related Party Transaction [Domain] | Warrants issued by Rhapsody
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Financial assets fair value	0
Level 3
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Financial assets fair value	1,078	0
Level 3 | Cash and Cash Equivalents
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Financial assets fair value	0	0
Level 3 | Cash and Cash Equivalents | Cash
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Financial assets fair value	0	0
Level 3 | Cash and Cash Equivalents | Money market funds
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Financial assets fair value	0	0
Level 3 | Cash and Cash Equivalents | Corporate notes and bonds
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Financial assets fair value	0	0
Level 3 | Short-term Investments
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Financial assets fair value	0	0
Level 3 | Short-term Investments | Corporate notes and bonds
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Financial assets fair value	0	0
Level 3 | Short-term Investments | U.S. government agency securities
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Financial assets fair value	0	0
Level 3 | Restricted cash equivalents and investments | Restricted cash equivalents and investments
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Financial assets fair value	0	0
Level 3 | Equity Investment in Publicly Traded Securities | Publicly Traded Investments
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Financial assets fair value	0	$ 0
Level 3 | Related Party Transaction [Domain] | Warrants issued by Rhapsody
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Financial assets fair value	$ 1,078

Fair Value Measurements (Short-

Fair Value Measurements (Short-term Investments) (Details) - USD ($) $ in Thousands	Sep. 30, 2015	Dec. 31, 2014
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Financial assets fair value	$ 118,077	$ 167,382
Short-term Investments
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Financial assets fair value	50,412	$ 58,453
Estimate of Fair Value Measurement | Short-term Investments
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Financial assets fair value	50,412
Estimate of Fair Value Measurement | Short-term Investments | Within one year
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Financial assets fair value	49,064
Estimate of Fair Value Measurement | Short-term Investments | Between one year and five years
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Financial assets fair value	$ 1,348

Fair Value Measurements - Addit

Fair Value Measurements - Additional Information (Detail) - USD ($) $ in Thousands	1 Months Ended		3 Months Ended		9 Months Ended
	Feb. 28, 2015	Mar. 31, 2014	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014	Mar. 31, 2015	Dec. 31, 2014
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Proceeds from sale of investment					$ (459)	$ (2,754)
Gain (loss) on sale of investment			$ (615)	$ 0	(222)	2,371
Financial assets fair value			$ 118,077		118,077			$ 167,382
J-Stream
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Proceeds from sale of investment		$ (2,800)			(500)
Gain (loss) on sale of investment					$ 400
Lo En Entertainment Inc
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Gain (loss) on sale of investment						$ 2,400
Rhapsody America LLC | Other Owner
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Percentage of ownership interest in Rhapsody held by third party			43.00%		43.00%		43.00%
Warrants issued by Rhapsody | Related Party Debt Obligation
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Expected term	5 years
Expected volatility rate	55.00%
Financial assets fair value	$ 1,200
Decrease in fair value					$ (100)

Allowance for Doubtful Accoun48

Allowance for Doubtful Accounts Receivable and Sales Returns (Activity in Allowance for Doubtful Accounts Receivable and Sales Returns) (Detail) $ in Thousands	9 Months Ended
	Sep. 30, 2015USD ($)
Allowance for Doubtful Accounts Receivable
Movement in Valuation Allowances and Reserves [Roll Forward]
Beginning Balance	$ 1,288
Addition (reduction) to allowance	155
Amounts written off	(94)
Foreign currency translation	(194)
Ending Balance	1,155
Allowance for Sales Returns
Movement in Valuation Allowances and Reserves [Roll Forward]
Beginning Balance	353
Addition (reduction) to allowance	(213)
Amounts written off	(7)
Foreign currency translation	0
Ending Balance	$ 133

Allowance for Doubtful Accoun49

Allowance for Doubtful Accounts Receivable and Sales Returns (Additional Information) (Detail) $ in Millions	3 Months Ended		9 Months Ended		12 Months Ended
	Sep. 30, 2015USD ($)Customer	Sep. 30, 2014USD ($)Customer	Sep. 30, 2015Customer	Sep. 30, 2014USD ($)	Dec. 31, 2014USD ($)Customer
Accounts Receivable | Company A
Concentration Risk [Line Items]
Number of customers	1				1
Percentage by major customer	50.00%				21.00%
Accounts Receivable | Company B
Concentration Risk [Line Items]
Number of customers	1				1
Percentage by major customer	13.00%				15.00%
Revenue by Segment | Mobile Entertainment | Company A
Concentration Risk [Line Items]
Number of customers	1	1	1
Percentage by major customer	28.00%	24.00%		20.00%	25.00%
Significant customer revenue | $	$ 8.7	$ 8.2		$ 24.6	$ 24.2

Other Intangible Assets (Detail

Other Intangible Assets (Detail) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2015	Sep. 30, 2015	Jul. 24, 2015	Dec. 31, 2014
Finite-Lived Intangible Assets, Net [Abstract]
Gross Amount		$ 63,277		$ 72,243
Accumulated Amortization		60,464		66,634
Net		2,813		5,609
Indefinite-Lived Intangible Assets (Excluding Goodwill) [Abstract]
Intangible Assets, Gross		63,277		76,743
Intangible assets, net		2,813		10,109
Tradenames and Trademarks
Indefinite-Lived Intangible Assets (Excluding Goodwill) [Abstract]
Indefinite-Lived Intangible Assets (Excluding Goodwill)		0		4,500
Customer relationships
Finite-Lived Intangible Assets, Net [Abstract]
Gross Amount		30,074		33,853
Accumulated Amortization		28,971		31,643
Net		1,103		2,210
Developed technology
Finite-Lived Intangible Assets, Net [Abstract]
Gross Amount		23,982		28,261
Accumulated Amortization		23,022		25,699
Net		960		2,562
Patents, trademarks and tradenames
Finite-Lived Intangible Assets, Net [Abstract]
Gross Amount		3,945		3,817
Accumulated Amortization		3,357		3,528
Net		588		289
Servicing contracts and other
Finite-Lived Intangible Assets, Net [Abstract]
Gross Amount		5,276		6,312
Accumulated Amortization		5,114		5,764
Net		$ 162		$ 548
Games
Indefinite-Lived Intangible Assets (Excluding Goodwill) [Abstract]
Intangible assets acquired	$ 500
Slingo and Social Casino
Indefinite-Lived Intangible Assets (Excluding Goodwill) [Abstract]
Intangible assets of disposal group			$ 5,700

Goodwill (Changes in Goodwill)

Goodwill (Changes in Goodwill) (Detail) $ in Thousands	9 Months Ended
	Sep. 30, 2015USD ($)
Goodwill [Roll Forward]
Beginning Balance	$ 17,355
Decreases due to current year disposals	(3,620)
Effects of foreign currency translation	(634)
Ending Balance	$ 13,101

Goodwill (Goodwill by Segments)

Goodwill (Goodwill by Segments) (Detail) - USD ($) $ in Thousands	Sep. 30, 2015	Dec. 31, 2014
Goodwill [Line Items]
Goodwill	$ 13,101	$ 17,355
RealPlayer Group
Goodwill [Line Items]
Goodwill	955
Mobile Entertainment
Goodwill [Line Items]
Goodwill	1,848
Games
Goodwill [Line Items]
Goodwill	$ 10,298

Accrued and Other Liabilities53

Accrued and Other Liabilities (Detail) - USD ($) $ in Thousands	Sep. 30, 2015	Dec. 31, 2014
Payables and Accruals [Abstract]
Royalties and other fulfillment costs	$ 3,672	$ 4,868
Employee compensation, commissions and benefits	8,134	7,711
Sales, VAT and other taxes payable	5,744	5,896
Other	6,340	6,811
Total accrued and other liabilities	$ 23,890	$ 25,286

Restructuring Charges Restructu

Restructuring Charges Restructuring Charges (Details) - Employee Separation Costs $ in Thousands	Nov. 04, 2015USD ($)position	Sep. 30, 2015USD ($)	Sep. 30, 2014USD ($)
Restructuring Cost and Reserve [Line Items]
Costs incurred and charged to expense		$ 5,563	$ 3,805
Restructuring Reserve [Roll Forward]
Accrued liability beginning balance		449
Costs incurred and charged to expense		5,563
Cash payments		(2,840)
Accrued liability ending balance		$ 3,172
Subsequent Event [Member]
Restructuring Cost and Reserve [Line Items]
Number of positions eliminated | position	60
Restructuring Reserve [Roll Forward]
Costs incurred and charged to expense	$ 2,300

Lease Exit and Related Charge55

Lease Exit and Related Charges (Changes to Accrued Loss on Excess Office Facilities) (Detail) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Disclosure Changes To Accrued Loss On Excess Office Facilities [Abstract]
Lease exit and related charges	$ 2,121	$ 154	$ 2,208	$ 703
Percent reduction in office space	43.00%
Accrued Loss on Excess Office Facilities [Roll Forward]
Accrued loss at December 31, 2014			234
Additions and adjustments to the lease loss accrual, including estimated sublease income			2,764
Less amounts paid, net of sublease amounts			(240)
Accrued loss at September 30, 2015	$ 2,758		2,758
Less current portion (included in Accrued and other current liabilities)	(988)		(988)
Accrued loss, non-current portion (included in Other long term liabilities)	$ 1,770		$ 1,770

Shareholders_ Equity (Accumulat

Shareholders’ Equity (Accumulated Other Comprehensive Income (Loss)) (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Accumulated Other Comprehensive Income (Loss) [Roll Forward]
Accumulated other comprehensive income (loss), beginning of period			$ (55,252)
Unrealized gains (losses), net of tax effects of $(56), $0, $0 and $0	$ (596)	$ (323)	(881)	$ (3,936)
Total other comprehensive income (loss)	(1,740)	(2,661)	(4,022)	(6,083)
Accumulated other comprehensive income (loss) balance, end of period	(59,274)	(53,778)	(59,274)	(53,778)
Investments
Accumulated Other Comprehensive Income (Loss) [Roll Forward]
Accumulated other comprehensive income (loss), beginning of period	1,967	2,784	2,252	6,397
Unrealized gains (losses), net of tax effects of $(56), $0, $0 and $0	(596)	(323)	(488)	(1,565)
Reclassification adjustments for losses (gains) included in other income (expense)	0	0	(393)	(2,371)
Total other comprehensive income (loss)	(596)	(323)	(881)	(3,936)
Accumulated other comprehensive income (loss) balance, end of period	1,371	2,461	1,371	2,461
Accumulated Other Comprehensive Income (Loss), Tax [Abstract]
Unrealized gains (losses), tax effects	(56)	0	0	0
Reclassification adjustments for losses (gains) included in other income (expense), tax effects	0	0	(1)	(4)
Foreign currency translation
Accumulated Other Comprehensive Income (Loss) [Roll Forward]
Accumulated other comprehensive income (loss), beginning of period	(59,501)	(53,901)	(57,504)	(54,092)
Translation adjustments	(880)	(2,338)	(2,877)	(2,099)
Reclassification adjustments for losses (gains) included in other income (expense)	(264)	0	(264)	(48)
Total other comprehensive income (loss)	(1,144)	(2,338)	(3,141)	(2,147)
Accumulated other comprehensive income (loss) balance, end of period	$ (60,645)	$ (56,239)	$ (60,645)	$ (56,239)

Income Taxes Income Taxes (Deta

Income Taxes Income Taxes (Details) $ in Millions	Sep. 30, 2015USD ($)
Income Tax Disclosure [Abstract]
Anticipated decrease in the unrecognized tax benefits	$ 3.3

Earnings Per Share (Calculation

Earnings Per Share (Calculation of Basic and Diluted Earnings Per Share) (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Earnings Per Share [Abstract]
Net income (loss) available to common shareholders	$ (21,184)	$ (22,178)	$ (73,434)	$ (50,977)
Weighted average common shares outstanding used to compute basic EPS	36,191	36,003	36,134	35,912
Dilutive effect of stock based awards	0	0	0	0
Weighted average common shares outstanding used to compute diluted EPS	36,191	36,003	36,134	35,912
Basic EPS (USD per share)	$ (0.59)	$ (0.62)	$ (2.03)	$ (1.42)
Diluted EPS (USD per share)	$ (0.59)	$ (0.62)	$ (2.03)	$ (1.42)

Earnings Per Share - Additional

Earnings Per Share - Additional Information (Detail) - shares shares in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Earnings Per Share [Abstract]
Shares of common stock excluded from the calculation of diluted net income per share because of antidilutive effect	5.7	6.3	6	6.2

Segment Information (Additional

Segment Information (Additional Information) (Detail)	9 Months Ended
	Sep. 30, 2015Segment
Segment Reporting [Abstract]
Number of reporting segments	3

Segment Information (Segment Re

Segment Information (Segment Results) (Detail) - USD ($) $ in Thousands	3 Months Ended				9 Months Ended
	Sep. 30, 2015		Sep. 30, 2014		Sep. 30, 2015	Sep. 30, 2014
Segment Reporting Information [Line Items]
Revenue	$ 30,823		$ 34,157	[1]	$ 95,374	$ 120,706
Cost of revenue	18,090	[2]	18,928	[2]	54,469	58,500
Extinguishment of liability	0		0		0	(10,580)
Gross profit	12,733		15,229		40,905	72,786
Operating expenses	34,695		35,992		102,586	121,257
Operating income (loss)	(21,962)		(20,763)		(61,681)	(48,471)
RealPlayer Group
Segment Reporting Information [Line Items]
Revenue	6,565		6,565		21,922	30,336
Cost of revenue	3,902		3,566		12,331	10,704
Gross profit	2,663		2,999		9,591	19,632
Operating expenses	11,492		12,392		36,868	42,668
Operating income (loss)	(8,829)		(9,393)		(27,277)	(23,036)
Mobile Entertainment
Segment Reporting Information [Line Items]
Revenue	16,414		19,190		49,409	62,285
Cost of revenue	11,518		12,626		34,103	38,874
Gross profit	4,896		6,564		15,306	23,411
Operating expenses	5,219		7,086		16,153	26,126
Operating income (loss)	(323)		(522)		(847)	(2,715)
Games
Segment Reporting Information [Line Items]
Revenue	7,844		8,402		24,043	28,085
Cost of revenue	2,513		2,573		7,593	8,419
Gross profit	5,331		5,829		16,450	19,666
Operating expenses	6,431		8,658		23,833	27,193
Operating income (loss)	(1,100)		(2,829)		(7,383)	(7,527)
Corporate
Segment Reporting Information [Line Items]
Cost of revenue	157		163		442	503
Extinguishment of liability	0		0
Operating expenses	11,553		7,856		25,732	25,270
Operating income (loss)	$ (11,710)		$ (8,019)		$ (26,174)	$ (15,193)
[1]	Quarters ended September 30, 2015 quarter ended September 30, 2015Components of Revenue License Fees7,049 5,925Service Revenue23,774 28,232Net Revenue30,823 34,157 9 months ended September 30, 2015 September 30, 2014Components of Revenue License Fees$21,259 $21,168Service Revenue74,115 99,538Net Revenue$95,374 $120,706
[2]	Components of Cost of RevenueSeptember 30, 2015 September 30, 2014 License Fees1,877 2,044 Service Revenue16,213 16,884 Net Revenue Costs18,090 18,928 9 months ended September 30, 2015 September 30, 2014Components of Cost of Revenue License Fees$5,048 $6,426Service Revenue49,421 52,074Net Revenue Costs$54,469 $58,500

Segment Information (Revenue by

Segment Information (Revenue by Geographic Region) (Detail) - USD ($) $ in Thousands	3 Months Ended			9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014		Sep. 30, 2015	Sep. 30, 2014
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenue	$ 30,823	$ 34,157	[1]	$ 95,374	$ 120,706
United States
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenue	11,460	12,280		36,112	47,800
Europe
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenue	3,670	5,749		11,561	21,129
Republic of Korea
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenue	9,569	9,728		28,268	31,114
Rest of the World
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenue	$ 6,124	$ 6,400		$ 19,433	$ 20,663
[1]	Quarters ended September 30, 2015 quarter ended September 30, 2015Components of Revenue License Fees7,049 5,925Service Revenue23,774 28,232Net Revenue30,823 34,157 9 months ended September 30, 2015 September 30, 2014Components of Revenue License Fees$21,259 $21,168Service Revenue74,115 99,538Net Revenue$95,374 $120,706

Segment Information (Long-Lived

Segment Information (Long-Lived Assets by Geographic Region) (Detail) - USD ($) $ in Thousands	Sep. 30, 2015	Dec. 31, 2014
Revenues from External Customers and Long-Lived Assets [Line Items]
Long-lived assets	$ 26,590	$ 43,712
United States
Revenues from External Customers and Long-Lived Assets [Line Items]
Long-lived assets	18,303	33,421
Europe
Revenues from External Customers and Long-Lived Assets [Line Items]
Long-lived assets	5,617	6,696
Republic of Korea
Revenues from External Customers and Long-Lived Assets [Line Items]
Long-lived assets	324	547
Rest of the World
Revenues from External Customers and Long-Lived Assets [Line Items]
Long-lived assets	$ 2,346	$ 3,048