Realnetworks (RNWK) 10-Q 4 Nov 16 2016 Q3 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	9 Months Ended
	Sep. 30, 2016	Oct. 31, 2016
Document and Entity Information [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Sep. 30, 2016
Document Fiscal Year Focus	2,016
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		36,971,291

CONDENSED CONSOLIDATED BALANCE

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Sep. 30, 2016	Dec. 31, 2015
Current assets:
Cash and cash equivalents	$ 38,284	$ 47,315
Short-term investments	42,465	51,814
Trade accounts receivable, net of allowances	25,287	22,511
Deferred costs, current portion	852	460
Prepaid expenses and other current assets	5,166	7,140
Total current assets	112,054	129,240
Equipment, software, and leasehold improvements, at cost:
Equipment and software	57,014	66,702
Leasehold improvements	3,204	3,122
Total equipment, software, and leasehold improvements, at cost	60,218	69,824
Less accumulated depreciation and amortization	54,339	61,024
Net equipment, software, and leasehold improvements	5,879	8,800
Restricted cash equivalents and investments	2,700	2,890
Available for sale securities	2,041	1,721
Other assets	1,908	2,307
Deferred costs, non-current portion	1,236	212
Deferred tax assets, net	1,015
Deferred tax assets, net		957
Other intangible assets, net	1,224	2,136
Goodwill	12,974	13,080
Total assets	141,031	161,343
Current liabilities:
Accounts payable	18,379	17,050
Accrued and other current liabilities	16,547	17,320
Deferred revenue, current portion	3,883	3,497
Total current liabilities	38,809	37,867
Deferred revenue, non-current portion	343	105
Deferred rent	504	620
Deferred tax liabilities, net	100
Deferred tax liabilities, net		88
Other long-term liabilities	1,935	1,980
Total liabilities	41,691	40,660
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 36,829 shares in 2016 and 36,298 shares in 2015	37	36
Additional paid-in capital	631,824	627,316
Accumulated other comprehensive loss	(58,758)	(59,480)
Retained deficit	(473,763)	(447,189)
Total shareholders’ equity	99,340	120,683
Total liabilities and shareholders’ equity	141,031	161,343
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	Sep. 30, 2016	Dec. 31, 2015
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	250,000,000	250,000,000
Common stock, issued	36,829,000	36,298,000
Common stock, outstanding	36,829,000	36,298,000
Preferred stock, Series A
Preferred stock, authorized	200,000	200,000
Preferred stock, Undesignated series
Preferred stock, authorized	59,800,000	59,800,000

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, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Income Statement [Abstract]
Net revenue (A)	[1]	$ 31,051	$ 30,823	$ 89,015	$ 95,374
Cost of revenue (B)	[2]	16,740	18,090	47,610	54,469
Gross profit		14,311	12,733	41,405	40,905
Operating expenses:
Research and development		6,699	10,501	23,185	34,681
Sales and marketing		7,183	11,938	24,157	38,822
General and administrative		7,086	7,021	21,380	21,312
Restructuring and other charges		499	3,114	1,297	5,563
Lease exit and related charges		1,233	2,121	2,191	2,208
Total operating expenses		22,700	34,695	72,210	102,586
Operating income (loss)		(8,389)	(21,962)	(30,805)	(61,681)
Other income (expenses):
Interest income, net		119	147	316	597
Gain (loss) on investments, net		6,021	(615)	5,978	(222)
Equity in net loss of Rhapsody investment		(233)	(735)	(629)	(13,831)
Other income (expense), net		(243)	297	(515)	628
Total other income (expenses), net		5,664	(906)	5,150	(12,828)
Income (loss) before income taxes		(2,725)	(22,868)	(25,655)	(74,509)
Income tax expense (benefit)		331	(1,684)	919	(1,075)
Net income (loss)		$ (3,056)	$ (21,184)	$ (26,574)	$ (73,434)
Basic net income (loss) per share (USD per share)		$ (0.08)	$ (0.59)	$ (0.72)	$ (2.03)
Diluted net income (loss) per share (USD per share)		$ (0.08)	$ (0.59)	$ (0.72)	$ (2.03)
Shares used to compute basic net income (loss) per share		36,805	36,191	36,693	36,134
Shares used to compute diluted net income (loss) per share		36,805	36,191	36,693	36,134
Comprehensive income (loss):
Unrealized investment holding gains (losses), net of reclassification adjustments		$ 72	$ (596)	$ 239	$ (881)
Foreign currency translation adjustments, net of reclassification adjustments		428	(1,144)	483	(3,141)
Total other comprehensive income (loss)		500	(1,740)	722	(4,022)
Net income (loss)		(3,056)	(21,184)	(26,574)	(73,434)
Comprehensive income (loss)		$ (2,556)	$ (22,924)	$ (25,852)	$ (77,456)
[1]	Quarters Ended September 30,Components of Revenue2016 2015License Fees7,850 7,049Service Revenue23,201 23,774Net Revenue31,051 30,823 Nine Months Ended September 30,Components of Cost of Revenue2016 2015License Fees$20,305 $21,259Service Revenue68,710 74,115Net Revenue$89,015 $95,374
[2]	Quarters Ended September 30,Components of Cost of Revenue2016 2015License Fees1,755 1,877Service Revenue14,985 16,213Net Revenue Costs16,740 18,090 Nine Months Ended September 30,Components of Cost of Revenue2016 2015License Fees$4,458 $5,048Service Revenue43,152 49,421Net Revenue Costs$47,610 $54,469

CONDENSED CONSOLIDATED STATEME5

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS) (Parenthetical) - USD ($) $ in Thousands		3 Months Ended		9 Months Ended
		Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Components of net revenue:
License fees		$ 7,850	$ 7,049	$ 20,305	$ 21,259
Service revenue		23,201	23,774	68,710	74,115
Net revenue	[1]	31,051	30,823	89,015	95,374
Components of cost of revenue:
License fees		1,755	1,877	4,458	5,048
Service revenue		14,985	16,213	43,152	49,421
Cost of revenue	[2]	$ 16,740	$ 18,090	$ 47,610	$ 54,469
[1]	Quarters Ended September 30,Components of Revenue2016 2015License Fees7,850 7,049Service Revenue23,201 23,774Net Revenue31,051 30,823 Nine Months Ended September 30,Components of Cost of Revenue2016 2015License Fees$20,305 $21,259Service Revenue68,710 74,115Net Revenue$89,015 $95,374
[2]	Quarters Ended September 30,Components of Cost of Revenue2016 2015License Fees1,755 1,877Service Revenue14,985 16,213Net Revenue Costs16,740 18,090 Nine Months Ended September 30,Components of Cost of Revenue2016 2015License Fees$4,458 $5,048Service Revenue43,152 49,421Net Revenue Costs$47,610 $54,469

CONDENSED CONSOLIDATED STATEME6

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015
Cash flows from operating activities:
Net income (loss)	$ (26,574)	$ (73,434)
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:
Depreciation and amortization	5,897	7,952
Stock-based compensation	4,557	3,761
Equity in net loss of Rhapsody	629	13,831
Deferred income taxes, net	(198)	(1,531)
Loss (gain) on investments, net	(5,978)	222
Realized translation loss (gain)	272	(264)
Fair value of warrants granted in 2015, net of subsequent mark to market adjustments in 2016 and 2015	112	(1,078)
Trade accounts receivable	(1,744)	(6,279)
Prepaid expenses and other assets	1,155	3,851
Accounts payable	450	(1,628)
Accrued and other liabilities	(872)	(1,372)
Net cash provided by (used in) operating activities	(22,294)	(55,969)
Cash flows from investing activities:
Purchases of equipment, software, and leasehold improvements	(2,009)	(1,110)
Proceeds from sale of equity and other investments	2,110	459
Purchases of short-term investments	(59,124)	(52,475)
Proceeds from sales and maturities of short-term investments	68,473	60,516
Decrease (increase) in restricted cash equivalents and investments, net	190	0
Acquisitions	(150)	(161)
Advance to Rhapsody	0	(5,000)
Repayment from Rhapsody	0	5,000
Proceeds from the sale of Slingo and social casino business	4,000	10,000
Net cash provided by (used in) investing activities	13,490	17,229
Cash flows from financing activities:
Proceeds from issuance of common stock (stock options and stock purchase plan)	166	297
Tax payments from shares withheld upon vesting of restricted stock	(843)	(69)
Net cash provided by (used in) financing activities	(677)	228
Effect of exchange rate changes on cash and cash equivalents	450	(2,910)
Net increase (decrease) in cash and cash equivalents	(9,031)	(41,422)
Cash and cash equivalents, beginning of period	47,315	103,253
Cash and cash equivalents, end of period	38,284	61,831
Supplemental disclosure of cash flow information:
Cash received from income tax refunds	531	1,035
Cash paid for income taxes	1,876	1,136
Non-cash investing activities:
Increase (decrease) in accrued purchases of equipment, software, and leasehold improvements	(6)	(124)
Acquisition of intangible assets	$ 0	$ 312

Description of Business and Sum

Description of Business and Summary of Significant Accounting Policies	9 Months Ended
	Sep. 30, 2016
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 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, 2016 are not necessarily indicative of the results that may be expected for any subsequent period or for the year ending December 31, 2016 . 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, 2015 (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. Reportable Segments. In the first quarter of 2016, we reorganized the management of our businesses and as a result, we changed our reportable segments. See Note 18 , Segment Information , for details. The historical financial information presented has been recast to reflect the new segments and the new corporate expense presentation.

Recent Accounting Pronouncement

Recent Accounting Pronouncements	9 Months Ended
	Sep. 30, 2016
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 the first annual period ending after December 15, 2016 and interim periods thereafter. 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. In February 2016, the FASB issued new guidance related to the accounting for leases by lessees. A major change in the new guidance is that lessees will be required to present right-of-use assets and lease liabilities on the balance sheet. The new guidance will be effective for us on January 1, 2019. We will be evaluating the effect that the guidance will have on our consolidated financial statements and related disclosures. In March 2016, the FASB issued new guidance that is intended to simplify several aspects of the accounting for stock-based compensation, including the treatment of forfeitures, income taxes and statutory tax withholding requirements. The new guidance will be effective for us on January 1, 2017; with early adoption permitted beginning January 1, 2016. We will be evaluating the effect that the guidance will have on our consolidated financial statements and related disclosures. 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.

Acquisitions and Disposals

Acquisitions and Disposals	9 Months Ended
	Sep. 30, 2016
Discontinued Operations and Disposal Groups [Abstract]
Acquisitions and Disposals	Note 3 Acquisitions & Disposals 2015 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, including substantially all of the related assets and liabilities, as well as the stock of Backstage Technologies Incorporated, to Gaming Realms plc. Of the total transaction price of $18.0 million , $10.0 million was paid in cash at closing on August 10, 2015 and $4.0 million was paid in cash on August 10, 2016. The remaining $4.0 million will be payable either all in cash or a mix of cash and Gaming Realms plc stock, at our election, on August 10, 2017. We recognized the gain related to the 2016 payment in Gain (loss) on investments, net on the statement of operations. Based on several factors, including the timing of the receipt of the remaining $4.0 million consideration, we deferred the remaining gain of $4.0 million and will recognize that gain upon realization.

Stock-Based Compensation

Stock-Based Compensation	9 Months Ended
	Sep. 30, 2016
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, and employee stock purchase plans and was as follows (in thousands): Quarters Ended Nine Months Ended 2016 2015 2016 2015 Total stock-based compensation expense $ 778 $ 1,178 $ 4,557 $ 3,761 The fair value of options granted determined using the Black-Scholes model used the following weighted-average assumptions: Quarters Ended Nine Months Ended 2016 2015 2016 2015 Expected dividend yield 0 % 0 % 0 % 0 % Risk-free interest rate 1.00 % 1.27 % 1.25 % 1.26 % Expected life (years) 3.8 3.8 4.6 4.3 Volatility 32 % 35 % 35 % 37 % The total stock-based compensation amounts for 2016 and 2015 disclosed above are recorded in their respective line items within operating expenses in the unaudited condensed consolidated statements of operations and comprehensive income (loss). Included in the expense for the nine months ended September 30, 2016 was stock compensation expense recorded in the first quarter of 2016 related to our 2015 incentive bonuses paid in fully vested restricted stock units which were authorized and granted in the first quarter of 2016. As of September 30, 2016 , $4.6 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. Stock Option Exchange As previously disclosed in our SEC filings, on September 19, 2016 our shareholders approved amendments to our stock plans to allow for an option exchange program. The program, which launched on November 3, 2016, offers eligible employees and certain other service providers an opportunity to exchange certain outstanding options, with a per share exercise price in excess of $4.33 , for new awards. We currently expect to incur additional stock based compensation due to this exchange beginning in the fourth quarter of fiscal year 2016, which will be determined based upon participation in the program.

Rhapsody Joint Venture

Rhapsody Joint Venture	9 Months Ended
	Sep. 30, 2016
Equity Method Investments and Joint Ventures [Abstract]
Rhapsody Joint Venture	Note 5 Rhapsody Joint Venture As of September 30, 2016 we owned approximately 42% 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 $0.2 million and $0.6 million for the quarter and nine months ended September 30, 2016 and $0.7 million and $13.8 million for the quarter and nine months ended September 30, 2015 . 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 . This occurred in the first quarter of 2015. As of September 30, 2016 , 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. Summarized financial information for Rhapsody, which represents 100% of their financial information, is as follows (in thousands): Quarters Ended Nine Months Ended 2016 2015 2016 2015 Net revenue $ 54,306 $ 52,769 $ 160,269 $ 149,156 Gross profit 15,195 9,552 29,288 25,395 Net income (loss) 1,632 (6,335 ) (11,421 ) (27,320 )

Fair Value Measurements

Fair Value Measurements	9 Months Ended
	Sep. 30, 2016
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, 2016 and December 31, 2015 , 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, 2016 September 30, 2016 Level 1 Level 2 Level 3 Total Cash and cash equivalents: Cash $ 27,401 $ — $ — $ 27,401 $ 27,401 Money market funds 49 — — 49 49 Corporate notes and bonds — 10,834 — 10,834 10,834 Total cash and cash equivalents 27,450 10,834 — 38,284 38,284 Short-term investments: Corporate notes and bonds — 42,465 — 42,465 42,460 Total short-term investments — 42,465 — 42,465 42,460 Restricted cash equivalents and investments — 2,700 — 2,700 2,700 Equity investment in publicly traded securities 2,041 — — 2,041 362 Warrant issued by Rhapsody (included in Other assets) — — 941 941 — Total $ 29,491 $ 55,999 $ 941 $ 86,431 $ 83,806 Fair Value Measurements as of Amortized Cost as of December 31, 2015 December 31, 2015 Level 1 Level 2 Level 3 Total Cash and cash equivalents: Cash $ 23,152 $ — $ — $ 23,152 $ 23,152 Money market funds 5,061 — — 5,061 5,061 Corporate notes and bonds — 19,102 — 19,102 19,102 Total cash and cash equivalents 28,213 19,102 — 47,315 47,315 Short-term investments: Corporate notes and bonds — 51,814 — 51,814 51,862 Total short-term investments — 51,814 — 51,814 51,862 Restricted cash equivalents and investments — 2,890 — 2,890 2,890 Equity investment in publicly traded securities 1,721 — — 1,721 362 Warrant issued by Rhapsody (included in Other assets) — — 1,053 1,053 — Total $ 29,934 $ 73,806 $ 1,053 $ 104,793 $ 102,429 Restricted cash equivalents and investments as of September 30, 2016 and December 31, 2015 relate to cash pledged as collateral against letters of credit in connection with lease agreements. Realized gains or losses on sales of short-term investment securities for the quarters and nine months ended September 30, 2016 and 2015 were not significant. Gross unrealized gains and gross unrealized losses on short-term investment securities as of September 30, 2016 and December 31, 2015 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, 2016 (in thousands): Estimated Fair Value Within one year $ 39,565 Between one year and five years 2,900 Total short-term investments $ 42,465 Our equity investment in a publicly traded company as of September 30, 2016 and December 31, 2015 consisted of J-Stream Inc., a Japanese media services company. This equity investment is accounted for as available for sale. During the nine months ended September 30, 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 October 2016, we completed the sale of the remaining investment in J-Stream, Inc, resulting in cash proceeds of $3.3 million and a realized pre-tax gain of $3.0 million . The impact of this transaction will be reflected in our fourth quarter financial statements. 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. 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, 2016 , the decrease in the fair value of the warrants was insignificant. 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, 2016 and 2015 , 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, 2016
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, 2015 $ 765 $ 158 Addition (reduction) to allowance 52 15 Amounts written off (6 ) (3 ) Foreign currency translation 29 — Balances, September 30, 2016 $ 840 $ 170 One customer accounted for 57% and one other customer accounted for 14% of trade accounts receivable as of September 30, 2016 . At December 31, 2015 , one customer accounted for 52% and one other customer accounted for 12% of trade accounts receivable. One customer accounted for 32% or $9.9 million of consolidated revenue during the quarter ended September 30, 2016 and 31% or $27.9 million during the nine months ended September 30, 2016 , which is reflected in our Mobile Services segment. One customer accounted for 28% of consolidated revenue or $8.7 million during the quarter ended September 30, 2015 and for 25% of consolidated revenue or $24.2 million during the nine months ended September 30, 2015 , which is reflected in our Mobile Services segment.

Other Intangible Assets

Other Intangible Assets	9 Months Ended
	Sep. 30, 2016
Goodwill and Intangible Assets Disclosure [Abstract]
Other Intangible Assets	Note 8 Other Intangible Assets Other intangible assets (in thousands): September 30, 2016 December 31, 2015 Gross Amount Accumulated Amortization Net Gross Amount Accumulated Amortization Net Amortizing intangible assets: Customer relationships $ 31,476 $ 30,851 $ 625 $ 30,182 $ 29,236 $ 946 Developed technology 24,725 24,253 472 24,047 23,244 803 Patents, trademarks and tradenames 3,801 3,674 127 3,717 3,398 319 Service contracts 5,447 5,447 — 5,269 5,201 68 Total $ 65,449 $ 64,225 $ 1,224 $ 63,215 $ 61,079 $ 2,136 An asset purchase relating to our Games business was completed in the second quarter of 2016 and resulted in an intangible asset of $0.2 million . In the third quarter of 2016 we recognized a gain of $2.0 million , net of transaction costs, to Gain (loss) on investments, net, as the result of a sale of a domain name to a third party. No impairments of other intangible assets were recognized in either of the nine months ended September 30, 2016 or 2015 .

Goodwill

Goodwill	9 Months Ended
	Sep. 30, 2016
Goodwill and Intangible Assets Disclosure [Abstract]
Goodwill	Note 9 Goodwill Changes in goodwill (in thousands): Balance, December 31, 2015 $ 13,080 Effects of foreign currency translation (106 ) Balance, September 30, 2016 $ 12,974 Goodwill by segment (in thousands): September 30, Consumer Media $ 580 Mobile Services 2,096 Games 10,298 Total goodwill $ 12,974 No impairment of goodwill was recognized in either of the nine months ended September 30, 2016 or in 2015 .

Accrued and Other Current Liabi

Accrued and Other Current Liabilities	9 Months Ended
	Sep. 30, 2016
Payables and Accruals [Abstract]
Accrued and Other Current Liabilities	Note 10 Accrued and Other Current Liabilities Accrued and other current liabilities (in thousands): September 30, 2016 December 31, 2015 Royalties and other fulfillment costs $ 2,515 $ 3,094 Employee compensation, commissions and benefits 5,381 5,958 Sales, VAT and other taxes payable 3,281 2,976 Other 5,370 5,292 Total accrued and other current liabilities $ 16,547 $ 17,320

Restructuring Charges

Restructuring Charges	9 Months Ended
	Sep. 30, 2016
Restructuring and Related Activities [Abstract]
Restructuring Charges	Note 11 Restructuring Charges Restructuring and other charges in 2016 and 2015 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. Restructuring charges are as follows (in thousands): Employee Separation Costs Costs incurred and charged to expense for the nine months ended September 30, 2016 $ 1,297 Costs incurred and charged to expense for the nine months ended September 30, 2015 $ 5,563 Changes to the accrued restructuring liability (which is included in Accrued and other current liabilities) for 2016 (in thousands) are as follows: Employee Separation Costs Accrued liability at December 31, 2015 $ 1,404 Costs incurred and charged to expense for the nine months ended September 30, 2016 1,297 Cash payments (2,279 ) Accrued liability at September 30, 2016 $ 422

Lease Exit and Related Charges

Lease Exit and Related Charges	9 Months Ended
	Sep. 30, 2016
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, including estimates of sublease income expected to be received. In the quarter ended September 30, 2016, we recorded additional losses relating to a further 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 2016 (in thousands) are as follows: Accrued loss at December 31, 2015 $ 2,595 Additions and adjustments to the lease loss accrual, including estimated sublease income 2,287 Less amounts paid, net of sublease amounts (1,257 ) Accrued loss at September 30, 2016 3,625 Less current portion (included in Accrued and other current liabilities) (1,824 ) Accrued loss, non-current portion (included in Other long term liabilities) $ 1,801

Shareholders_ Equity

Shareholders’ Equity	9 Months Ended
	Sep. 30, 2016
Equity [Abstract]
Shareholders’ Equity	Note 13 Shareholders’ Equity Accumulated Other Comprehensive Income (Loss) Changes in components of accumulated other comprehensive income (loss) (in thousands): Quarters Ended Nine Months Ended 2016 2015 2016 2015 Investments Accumulated other comprehensive income (loss), beginning of period $ 1,464 $ 1,967 $ 1,297 $ 2,252 Unrealized gains (losses), net of tax effects of $42, $(56), $141 and $0 72 (596 ) 239 (488 ) Reclassification adjustments for losses (gains) included in other income (expense), net of tax effects of $0, $0, $0 and $(1) — — — (393 ) Net current period other comprehensive income (loss) 72 (596 ) 239 (881 ) Accumulated other comprehensive income (loss) balance, end of period $ 1,536 $ 1,371 $ 1,536 $ 1,371 Foreign currency translation Accumulated other comprehensive income (loss), beginning of period $ (60,722 ) $ (59,501 ) $ (60,777 ) $ (57,504 ) Translation adjustments 156 (880 ) 211 (2,877 ) Reclassification adjustments for losses (gains) included in other income (expense) 272 (264 ) 272 (264 ) Net current period other comprehensive income (loss) 428 (1,144 ) 483 (3,141 ) Accumulated other comprehensive income (loss) balance, end of period $ (60,294 ) $ (60,645 ) $ (60,294 ) $ (60,645 ) Total accumulated other comprehensive income (loss), end of period $ (58,758 ) $ (59,274 ) $ (58,758 ) $ (59,274 )

Income Taxes

Income Taxes	9 Months Ended
	Sep. 30, 2016
Income Tax Disclosure [Abstract]
Income Taxes	Note 14 Income Taxes As of September 30, 2016 , there have been no material changes to RealNetworks’ uncertain tax positions disclosures as provided in Note 14 of the 2015 10-K. We do not anticipate that the total amount of unrecognized tax benefits will significantly change within the next twelve months. 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 (Loss) Per Share

Earnings (Loss) Per Share	9 Months Ended
	Sep. 30, 2016
Earnings Per Share [Abstract]
Earnings (Loss) 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 2016 2015 2016 2015 Net income (loss) $ (3,056 ) $ (21,184 ) $ (26,574 ) $ (73,434 ) Weighted average common shares outstanding used to compute basic EPS 36,805 36,191 36,693 36,134 Dilutive effect of stock based awards — — — — Weighted average common shares outstanding used to compute diluted EPS 36,805 36,191 36,693 36,134 Basic EPS $ (0.08 ) $ (0.59 ) $ (0.72 ) $ (2.03 ) Diluted EPS $ (0.08 ) $ (0.59 ) $ (0.72 ) $ (2.03 ) During the quarter and nine months ended September 30, 2016 , 4.6 million and 4.8 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, 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.

Commitments and Contingencies

Commitments and Contingencies	9 Months Ended
	Sep. 30, 2016
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	Note 16 Commitments and Contingencies We could in the future 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, 2016
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 some of our carrier customers. In relation to certain 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, 2016
Segment Reporting [Abstract]
Segment Information	Note 18 Segment Information In the first quarter of 2016, we reorganized the management of our businesses and as a result, we now report three segments: (1) Consumer Media, which includes our PC-based RealPlayer products, including RealPlayer Plus and related products and intellectual property licensing; (2) Mobile Services, which includes our SaaS services, our LISTEN ® product, and our mobile RealTimes ® product that is primarily sold through mobile carriers; and (3) Games, which includes all our games-related businesses, including sales of games licenses, online games subscription services, advertising on games sites and social network sites, microtransactions from online and social games, and sales of mobile games. We allocate certain corporate expenses which are directly attributable to supporting our businesses, including but not limited to a portion of finance, legal, human resources and headquarters facilities, to our reportable segments. Remaining expenses, which are not directly attributable to supporting the business, are reported as corporate items. Also reported in our corporate segment are restructuring charges, lease exit and related charges, as well as stock compensation charges. Concurrent with the first quarter of 2016 segment change described above, we also changed our corporate expense allocation methodology to increase accountability, resulting in an increase in costs allocated to the Consumer Media and Mobile Services businesses. RealNetworks reports three reportable segments based on factors such as how we manage our operations and how our Chief Operating Decision Maker (CODM) reviews results. The CODM 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. The historical financial information presented has been recast to reflect the new segments and the new corporate expense presentation. Segment results for the quarters and nine months ended September 30, 2016 and 2015 (in thousands): Consumer Media Quarters Ended Nine Months Ended 2016 2015 2016 2015 Revenue $ 6,482 $ 6,495 $ 18,608 $ 21,765 Cost of revenue 1,507 3,142 5,485 10,173 Gross profit 4,975 3,353 13,123 11,592 Operating expenses 4,271 6,421 13,940 19,882 Operating income (loss) $ 704 $ (3,068 ) $ (817 ) $ (8,290 ) Mobile Services Quarters Ended Nine Months Ended 2016 2015 2016 2015 Revenue $ 17,683 $ 16,484 $ 51,445 $ 49,566 Cost of revenue 13,026 12,512 36,347 36,802 Gross profit 4,657 3,972 15,098 12,764 Operating expenses 8,075 11,093 26,653 35,153 Operating income (loss) $ (3,418 ) $ (7,121 ) $ (11,555 ) $ (22,389 ) Games Quarters Ended Nine Months Ended 2016 2015 2016 2015 Revenue $ 6,886 $ 7,844 $ 18,962 $ 24,043 Cost of revenue 2,203 2,513 5,865 7,593 Gross profit 4,683 5,331 13,097 16,450 Operating expenses 4,649 6,431 14,669 23,833 Operating income (loss) $ 34 $ (1,100 ) $ (1,572 ) $ (7,383 ) Corporate Quarters Ended Nine Months Ended 2016 2015 2016 2015 Cost of revenue $ 4 $ (77 ) $ (87 ) $ (99 ) Operating expenses 5,705 10,750 16,948 23,718 Operating income (loss) $ (5,709 ) $ (10,673 ) $ (16,861 ) $ (23,619 ) 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 2016 2015 2016 2015 United States $ 10,642 $ 11,460 $ 31,379 $ 36,112 Europe 3,288 3,670 10,002 11,561 Republic of Korea 10,582 9,569 30,227 28,268 Rest of the World 6,539 6,124 17,407 19,433 Total net revenue $ 31,051 $ 30,823 $ 89,015 $ 95,374 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 $ 13,626 $ 16,821 Europe 4,194 4,898 Republic of Korea 211 282 Rest of the World 2,046 2,015 Total long-lived assets $ 20,077 $ 24,016

Related Party Transactions

Related Party Transactions	9 Months Ended
	Sep. 30, 2016
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, 2016
Accounting Policies [Abstract]
Description of Business	Description of Business. RealNetworks, Inc. and subsidiaries is a 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	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, 2016 are not necessarily indicative of the results that may be expected for any subsequent period or for the year ending December 31, 2016 . 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, 2015 (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.
Reportable Segments	Reportable Segments. In the first quarter of 2016, we reorganized the management of our businesses and as a result, we changed our reportable segments. See Note 18 , Segment Information , for details. The historical financial information presented has been recast to reflect the new segments and the new corporate expense presentation.

Stock-Based Compensation (Table

Stock-Based Compensation (Tables)	9 Months Ended
	Sep. 30, 2016
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, and employee stock purchase plans and was as follows (in thousands): Quarters Ended Nine Months Ended 2016 2015 2016 2015 Total stock-based compensation expense $ 778 $ 1,178 $ 4,557 $ 3,761
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 2016 2015 2016 2015 Expected dividend yield 0 % 0 % 0 % 0 % Risk-free interest rate 1.00 % 1.27 % 1.25 % 1.26 % Expected life (years) 3.8 3.8 4.6 4.3 Volatility 32 % 35 % 35 % 37 %

Rhapsody Joint Venture (Tables)

Rhapsody Joint Venture (Tables)	9 Months Ended
	Sep. 30, 2016
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 2016 2015 2016 2015 Net revenue $ 54,306 $ 52,769 $ 160,269 $ 149,156 Gross profit 15,195 9,552 29,288 25,395 Net income (loss) 1,632 (6,335 ) (11,421 ) (27,320 )

Fair Value Measurements (Tables

Fair Value Measurements (Tables)	9 Months Ended
	Sep. 30, 2016
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, 2016 and December 31, 2015 , 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, 2016 September 30, 2016 Level 1 Level 2 Level 3 Total Cash and cash equivalents: Cash $ 27,401 $ — $ — $ 27,401 $ 27,401 Money market funds 49 — — 49 49 Corporate notes and bonds — 10,834 — 10,834 10,834 Total cash and cash equivalents 27,450 10,834 — 38,284 38,284 Short-term investments: Corporate notes and bonds — 42,465 — 42,465 42,460 Total short-term investments — 42,465 — 42,465 42,460 Restricted cash equivalents and investments — 2,700 — 2,700 2,700 Equity investment in publicly traded securities 2,041 — — 2,041 362 Warrant issued by Rhapsody (included in Other assets) — — 941 941 — Total $ 29,491 $ 55,999 $ 941 $ 86,431 $ 83,806 Fair Value Measurements as of Amortized Cost as of December 31, 2015 December 31, 2015 Level 1 Level 2 Level 3 Total Cash and cash equivalents: Cash $ 23,152 $ — $ — $ 23,152 $ 23,152 Money market funds 5,061 — — 5,061 5,061 Corporate notes and bonds — 19,102 — 19,102 19,102 Total cash and cash equivalents 28,213 19,102 — 47,315 47,315 Short-term investments: Corporate notes and bonds — 51,814 — 51,814 51,862 Total short-term investments — 51,814 — 51,814 51,862 Restricted cash equivalents and investments — 2,890 — 2,890 2,890 Equity investment in publicly traded securities 1,721 — — 1,721 362 Warrant issued by Rhapsody (included in Other assets) — — 1,053 1,053 — Total $ 29,934 $ 73,806 $ 1,053 $ 104,793 $ 102,429
Schedule of Contractual Maturity Date	Contractual maturities of short-term investments as of September 30, 2016 (in thousands): Estimated Fair Value Within one year $ 39,565 Between one year and five years 2,900 Total short-term investments $ 42,465

Allowance for Doubtful Accoun30

Allowance for Doubtful Accounts Receivable and Sales Returns (Tables)	9 Months Ended
	Sep. 30, 2016
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, 2015 $ 765 $ 158 Addition (reduction) to allowance 52 15 Amounts written off (6 ) (3 ) Foreign currency translation 29 — Balances, September 30, 2016 $ 840 $ 170

Other Intangible Assets (Tables

Other Intangible Assets (Tables)	9 Months Ended
	Sep. 30, 2016
Goodwill and Intangible Assets Disclosure [Abstract]
Other Intangible Assets	Other intangible assets (in thousands): September 30, 2016 December 31, 2015 Gross Amount Accumulated Amortization Net Gross Amount Accumulated Amortization Net Amortizing intangible assets: Customer relationships $ 31,476 $ 30,851 $ 625 $ 30,182 $ 29,236 $ 946 Developed technology 24,725 24,253 472 24,047 23,244 803 Patents, trademarks and tradenames 3,801 3,674 127 3,717 3,398 319 Service contracts 5,447 5,447 — 5,269 5,201 68 Total $ 65,449 $ 64,225 $ 1,224 $ 63,215 $ 61,079 $ 2,136

Goodwill (Tables)

Goodwill (Tables)	9 Months Ended
	Sep. 30, 2016
Goodwill and Intangible Assets Disclosure [Abstract]
Changes in Goodwill	Changes in goodwill (in thousands): Balance, December 31, 2015 $ 13,080 Effects of foreign currency translation (106 ) Balance, September 30, 2016 $ 12,974
Goodwill Assigned by Segments	Goodwill by segment (in thousands): September 30, Consumer Media $ 580 Mobile Services 2,096 Games 10,298 Total goodwill $ 12,974

Accrued and Other Current Lia33

Accrued and Other Current Liabilities (Tables)	9 Months Ended
	Sep. 30, 2016
Payables and Accruals [Abstract]
Accrued and Other Liabilities	Accrued and other current liabilities (in thousands): September 30, 2016 December 31, 2015 Royalties and other fulfillment costs $ 2,515 $ 3,094 Employee compensation, commissions and benefits 5,381 5,958 Sales, VAT and other taxes payable 3,281 2,976 Other 5,370 5,292 Total accrued and other current liabilities $ 16,547 $ 17,320

Restructuring Charges (Tables)

Restructuring Charges (Tables)	9 Months Ended
	Sep. 30, 2016
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, 2016 $ 1,297 Costs incurred and charged to expense for the nine months ended September 30, 2015 $ 5,563 Changes to the accrued restructuring liability (which is included in Accrued and other current liabilities) for 2016 (in thousands) are as follows: Employee Separation Costs Accrued liability at December 31, 2015 $ 1,404 Costs incurred and charged to expense for the nine months ended September 30, 2016 1,297 Cash payments (2,279 ) Accrued liability at September 30, 2016 $ 422

Lease Exit and Related Charges

Lease Exit and Related Charges (Tables)	9 Months Ended
	Sep. 30, 2016
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 2016 (in thousands) are as follows: Accrued loss at December 31, 2015 $ 2,595 Additions and adjustments to the lease loss accrual, including estimated sublease income 2,287 Less amounts paid, net of sublease amounts (1,257 ) Accrued loss at September 30, 2016 3,625 Less current portion (included in Accrued and other current liabilities) (1,824 ) Accrued loss, non-current portion (included in Other long term liabilities) $ 1,801

Shareholders_ Equity (Tables)

Shareholders’ Equity (Tables)	9 Months Ended
	Sep. 30, 2016
Equity [Abstract]
Schedule of Accumulated Other Comprehensive Income (Loss)	Changes in components of accumulated other comprehensive income (loss) (in thousands): Quarters Ended Nine Months Ended 2016 2015 2016 2015 Investments Accumulated other comprehensive income (loss), beginning of period $ 1,464 $ 1,967 $ 1,297 $ 2,252 Unrealized gains (losses), net of tax effects of $42, $(56), $141 and $0 72 (596 ) 239 (488 ) Reclassification adjustments for losses (gains) included in other income (expense), net of tax effects of $0, $0, $0 and $(1) — — — (393 ) Net current period other comprehensive income (loss) 72 (596 ) 239 (881 ) Accumulated other comprehensive income (loss) balance, end of period $ 1,536 $ 1,371 $ 1,536 $ 1,371 Foreign currency translation Accumulated other comprehensive income (loss), beginning of period $ (60,722 ) $ (59,501 ) $ (60,777 ) $ (57,504 ) Translation adjustments 156 (880 ) 211 (2,877 ) Reclassification adjustments for losses (gains) included in other income (expense) 272 (264 ) 272 (264 ) Net current period other comprehensive income (loss) 428 (1,144 ) 483 (3,141 ) Accumulated other comprehensive income (loss) balance, end of period $ (60,294 ) $ (60,645 ) $ (60,294 ) $ (60,645 ) Total accumulated other comprehensive income (loss), end of period $ (58,758 ) $ (59,274 ) $ (58,758 ) $ (59,274 )

Earnings (Loss) Per Share (Tabl

Earnings (Loss) Per Share (Tables)	9 Months Ended
	Sep. 30, 2016
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 2016 2015 2016 2015 Net income (loss) $ (3,056 ) $ (21,184 ) $ (26,574 ) $ (73,434 ) Weighted average common shares outstanding used to compute basic EPS 36,805 36,191 36,693 36,134 Dilutive effect of stock based awards — — — — Weighted average common shares outstanding used to compute diluted EPS 36,805 36,191 36,693 36,134 Basic EPS $ (0.08 ) $ (0.59 ) $ (0.72 ) $ (2.03 ) Diluted EPS $ (0.08 ) $ (0.59 ) $ (0.72 ) $ (2.03 )

Segment Information (Tables)

Segment Information (Tables)	9 Months Ended
	Sep. 30, 2016
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 2016 2015 2016 2015 United States $ 10,642 $ 11,460 $ 31,379 $ 36,112 Europe 3,288 3,670 10,002 11,561 Republic of Korea 10,582 9,569 30,227 28,268 Rest of the World 6,539 6,124 17,407 19,433 Total net revenue $ 31,051 $ 30,823 $ 89,015 $ 95,374
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 $ 13,626 $ 16,821 Europe 4,194 4,898 Republic of Korea 211 282 Rest of the World 2,046 2,015 Total long-lived assets $ 20,077 $ 24,016
Operating Segments | Consumer Media
Segment Reporting Information [Line Items]
Segment Results	Consumer Media Quarters Ended Nine Months Ended 2016 2015 2016 2015 Revenue $ 6,482 $ 6,495 $ 18,608 $ 21,765 Cost of revenue 1,507 3,142 5,485 10,173 Gross profit 4,975 3,353 13,123 11,592 Operating expenses 4,271 6,421 13,940 19,882 Operating income (loss) $ 704 $ (3,068 ) $ (817 ) $ (8,290 )
Operating Segments | Mobile Services
Segment Reporting Information [Line Items]
Segment Results	Mobile Services Quarters Ended Nine Months Ended 2016 2015 2016 2015 Revenue $ 17,683 $ 16,484 $ 51,445 $ 49,566 Cost of revenue 13,026 12,512 36,347 36,802 Gross profit 4,657 3,972 15,098 12,764 Operating expenses 8,075 11,093 26,653 35,153 Operating income (loss) $ (3,418 ) $ (7,121 ) $ (11,555 ) $ (22,389 )
Operating Segments | Games
Segment Reporting Information [Line Items]
Segment Results	Games Quarters Ended Nine Months Ended 2016 2015 2016 2015 Revenue $ 6,886 $ 7,844 $ 18,962 $ 24,043 Cost of revenue 2,203 2,513 5,865 7,593 Gross profit 4,683 5,331 13,097 16,450 Operating expenses 4,649 6,431 14,669 23,833 Operating income (loss) $ 34 $ (1,100 ) $ (1,572 ) $ (7,383 )
Corporate
Segment Reporting Information [Line Items]
Segment Results	Corporate Quarters Ended Nine Months Ended 2016 2015 2016 2015 Cost of revenue $ 4 $ (77 ) $ (87 ) $ (99 ) Operating expenses 5,705 10,750 16,948 23,718 Operating income (loss) $ (5,709 ) $ (10,673 ) $ (16,861 ) $ (23,619 )

Acquisitions and Disposals (Det

Acquisitions and Disposals (Details) - USD ($) $ in Thousands	Aug. 10, 2016	Aug. 10, 2015	Sep. 30, 2016	Sep. 30, 2015	Jul. 24, 2015
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Cash consideration received			$ 4,000	$ 10,000
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	$ 4,000	$ 10,000
Consideration receivable					$ 4,000

Stock-Based Compensation (Recog

Stock-Based Compensation (Recognized Stock-Based Compensation Expense) (Detail) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Total stock-based compensation expense	$ 778	$ 1,178	$ 4,557	$ 3,761

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, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Expected dividend yield	0.00%	0.00%	0.00%	0.00%
Risk-free interest rate	1.00%	1.27%	1.25%	1.26%
Expected life	3 years 9 months	3 years 9 months	4 years 7 months	4 years 4 months
Volatility	32.00%	35.00%	35.00%	37.00%

Stock-Based Compensation (Addit

Stock-Based Compensation (Additional Information) (Detail) - USD ($) $ / shares in Units, $ in Millions	Nov. 02, 2016	Sep. 30, 2016
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total unrecognized compensation cost		$ 4.6
Total unrecognized compensation cost, expected recognition period (in years)		2 years
Subsequent Event
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Minimum per share exercise price to participate in stock exchange program	$ 4.33

Rhapsody Joint Venture (Additio

Rhapsody Joint Venture (Additional Information) (Detail) - USD ($)	3 Months Ended			9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Mar. 31, 2010	Sep. 30, 2016	Sep. 30, 2015
Schedule of Equity Method Investments [Line Items]
Losses recorded in the operations of Rhapsody	$ 233,000	$ 735,000		$ 629,000	$ 13,831,000
Rhapsody America LLC
Schedule of Equity Method Investments [Line Items]
Percentage of ownership interest in Rhapsody	42.00%			42.00%
Payments for restructuring			$ 18,000,000
Liquidation preference amount	$ 10,000,000			$ 10,000,000
Losses recorded in the operations of Rhapsody	200,000	$ 700,000		600,000	$ 13,800,000
Carrying value	$ 0			$ 0

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, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Schedule of Equity Method Investments [Line Items]
Net revenue	$ 54,306	$ 52,769	$ 160,269	$ 149,156
Gross profit	15,195	9,552	29,288	25,395
Net loss	$ 1,632	$ (6,335)	$ (11,421)	$ (27,320)

Fair Value Measurements (Financ

Fair Value Measurements (Financial Assets Measured at Fair Value on a Recurring Basis) (Detail) - USD ($) $ in Thousands	Sep. 30, 2016	Dec. 31, 2015
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Financial assets fair value	$ 86,431	$ 104,793
Amortized Cost	83,806	102,429
Cash and Cash Equivalents
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Financial assets fair value	38,284	47,315
Amortized Cost	38,284	47,315
Cash and Cash Equivalents | Cash
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Financial assets fair value	27,401	23,152
Amortized Cost	27,401	23,152
Cash and Cash Equivalents | Money market funds
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Financial assets fair value	49	5,061
Amortized Cost	49	5,061
Cash and Cash Equivalents | Corporate notes and bonds
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Financial assets fair value	10,834	19,102
Amortized Cost	10,834	19,102
Short-term Investments
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Financial assets fair value	42,465	51,814
Amortized Cost	42,460	51,862
Short-term Investments | Corporate notes and bonds
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Financial assets fair value	42,465	51,814
Amortized Cost	42,460	51,862
Restricted cash equivalents and investments
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Financial assets fair value	2,700	2,890
Amortized Cost	2,700	2,890
Equity investment in publicly traded securities
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Financial assets fair value		1,721
Amortized Cost		362
Equity investment in publicly traded securities | Publicly Traded Investments
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Financial assets fair value	2,041
Amortized Cost	362
Related Party Transaction | Warrants issued by Rhapsody
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Financial assets fair value	941	1,053
Amortized Cost	0	0
Level 1
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Financial assets fair value	29,491	29,934
Level 1 | Cash and Cash Equivalents
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Financial assets fair value	27,450	28,213
Level 1 | Cash and Cash Equivalents | Cash
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Financial assets fair value	27,401	23,152
Level 1 | Cash and Cash Equivalents | Money market funds
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Financial assets fair value	49	5,061
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	0	0
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 | 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
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Financial assets fair value		1,721
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	2,041
Level 1 | Related Party Transaction | Warrants issued by Rhapsody
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Financial assets fair value	0	0
Level 2
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Financial assets fair value	55,999	73,806
Level 2 | Cash and Cash Equivalents
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Financial assets fair value	10,834	19,102
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	10,834	19,102
Level 2 | Short-term Investments
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Financial assets fair value	42,465	51,814
Level 2 | Short-term Investments | Corporate notes and bonds
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Financial assets fair value	42,465	51,814
Level 2 | Restricted cash equivalents and investments
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Financial assets fair value	2,700	2,890
Level 2 | Equity investment in publicly traded securities
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Financial assets fair value		0
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
Level 2 | Related Party Transaction | Warrants issued by Rhapsody
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Financial assets fair value	0	0
Level 3
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Financial assets fair value	941	1,053
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 | 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
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Financial assets fair value		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
Level 3 | Related Party Transaction | Warrants issued by Rhapsody
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Financial assets fair value	$ 941	$ 1,053

Fair Value Measurements (Short-

Fair Value Measurements (Short-term Investments) (Details) - USD ($) $ in Thousands	Sep. 30, 2016	Dec. 31, 2015
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Financial assets fair value	$ 86,431	$ 104,793
Short-term Investments
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Financial assets fair value	42,465	$ 51,814
Estimate of Fair Value Measurement | Short-term Investments
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Financial assets fair value	42,465
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	39,565
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	$ 2,900

Fair Value Measurements - Addit

Fair Value Measurements - Additional Information (Detail) - USD ($) $ in Thousands	1 Months Ended		3 Months Ended		9 Months Ended
	Oct. 31, 2016	Feb. 28, 2015	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015	Dec. 31, 2015
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Proceeds from sale of investment					$ (2,110)	$ (459)
Gain on sale of investment			$ 6,021	$ (615)	5,978	(222)
Financial assets fair value			$ 86,431		$ 86,431		$ 104,793
J-Stream
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Proceeds from sale of investment						(500)
Gain on sale of investment						$ 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%
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
Subsequent Event | J-Stream
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Proceeds from sale of investment	$ (3,300)
Gain on sale of investment	$ 3,000

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, 2016USD ($)
Allowance for Doubtful Accounts Receivable
Movement in Valuation Allowances and Reserves [Roll Forward]
Beginning Balance	$ 765
Addition (reduction) to allowance	52
Amounts written off	(6)
Foreign currency translation	29
Ending Balance	840
Allowance for Sales Returns
Movement in Valuation Allowances and Reserves [Roll Forward]
Beginning Balance	158
Addition (reduction) to allowance	15
Amounts written off	(3)
Foreign currency translation	0
Ending Balance	$ 170

Allowance for Doubtful Accoun49

Allowance for Doubtful Accounts Receivable and Sales Returns (Additional Information) (Detail) $ in Thousands		3 Months Ended		9 Months Ended		12 Months Ended
		Sep. 30, 2016USD ($)Customer	Sep. 30, 2015USD ($)Customer	Sep. 30, 2016USD ($)	Sep. 30, 2015USD ($)	Dec. 31, 2015Customer
Concentration Risk [Line Items]
Revenue | $	[1]	$ 31,051	$ 30,823	$ 89,015	$ 95,374
Accounts Receivable | Company A
Concentration Risk [Line Items]
Number of customers		1				1
Percentage by major customer		57.00%				52.00%
Accounts Receivable | Company B
Concentration Risk [Line Items]
Number of customers		1				1
Percentage by major customer		14.00%				12.00%
Revenue by Segment | Mobile Services | Company A
Concentration Risk [Line Items]
Number of customers		1	1
Percentage by major customer		32.00%	28.00%	31.00%	25.00%
Revenue | $		$ 9,900	$ 8,700	$ 27,900	$ 24,200
[1]	Quarters Ended September 30,Components of Revenue2016 2015License Fees7,850 7,049Service Revenue23,201 23,774Net Revenue31,051 30,823 Nine Months Ended September 30,Components of Cost of Revenue2016 2015License Fees$20,305 $21,259Service Revenue68,710 74,115Net Revenue$89,015 $95,374

Other Intangible Assets (Detail

Other Intangible Assets (Detail) - USD ($) $ in Thousands	3 Months Ended			9 Months Ended
	Sep. 30, 2016	Jun. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015	Dec. 31, 2015
Finite-Lived Intangible Assets, Net [Abstract]
Gross Amount	$ 65,449			$ 65,449		$ 63,215
Accumulated Amortization	64,225			64,225		61,079
Net	1,224			1,224		2,136
Intangible assets acquired		$ 200
Gain on sale of investment	6,021		$ (615)	5,978	$ (222)
Customer relationships
Finite-Lived Intangible Assets, Net [Abstract]
Gross Amount	31,476			31,476		30,182
Accumulated Amortization	30,851			30,851		29,236
Net	625			625		946
Developed technology
Finite-Lived Intangible Assets, Net [Abstract]
Gross Amount	24,725			24,725		24,047
Accumulated Amortization	24,253			24,253		23,244
Net	472			472		803
Patents, trademarks and tradenames
Finite-Lived Intangible Assets, Net [Abstract]
Gross Amount	3,801			3,801		3,717
Accumulated Amortization	3,674			3,674		3,398
Net	127			127		319
Servicing contracts and other
Finite-Lived Intangible Assets, Net [Abstract]
Gross Amount	5,447			5,447		5,269
Accumulated Amortization	5,447			5,447		5,201
Net	0			$ 0		$ 68
Domain Name
Finite-Lived Intangible Assets, Net [Abstract]
Gain on sale of investment	$ 2,000

Goodwill (Changes in Goodwill)

Goodwill (Changes in Goodwill) (Detail) $ in Thousands	9 Months Ended
	Sep. 30, 2016USD ($)
Goodwill [Roll Forward]
Beginning Balance	$ 13,080
Effects of foreign currency translation	(106)
Ending Balance	$ 12,974

Goodwill (Goodwill by Segments)

Goodwill (Goodwill by Segments) (Detail) - USD ($) $ in Thousands	Sep. 30, 2016	Dec. 31, 2015
Goodwill [Line Items]
Goodwill	$ 12,974	$ 13,080
Consumer Media
Goodwill [Line Items]
Goodwill	580
Mobile Services
Goodwill [Line Items]
Goodwill	2,096
Games
Goodwill [Line Items]
Goodwill	$ 10,298

Accrued and Other Current Lia53

Accrued and Other Current Liabilities (Detail) - USD ($) $ in Thousands	Sep. 30, 2016	Dec. 31, 2015
Payables and Accruals [Abstract]
Royalties and other fulfillment costs	$ 2,515	$ 3,094
Employee compensation, commissions and benefits	5,381	5,958
Sales, VAT and other taxes payable	3,281	2,976
Other	5,370	5,292
Total accrued and other liabilities	$ 16,547	$ 17,320

Restructuring Charges (Details)

Restructuring Charges (Details) - Employee Separation Costs - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015
Restructuring Cost and Reserve [Line Items]
Costs incurred and charged to expense	$ 1,297	$ 5,563
Restructuring Reserve [Roll Forward]
Accrued liability beginning balance	1,404
Costs incurred and charged to expense	1,297
Cash payments	(2,279)
Accrued liability ending balance	$ 422

Lease Exit and Related Charge55

Lease Exit and Related Charges (Changes to Accrued Loss on Excess Office Facilities) (Detail) $ in Thousands	9 Months Ended
	Sep. 30, 2016USD ($)
Accrued Loss on Excess Office Facilities [Roll Forward]
Accrued loss at December 31, 2015	$ 2,595
Additions and adjustments to the lease loss accrual, including estimated sublease income	2,287
Less amounts paid, net of sublease amounts	(1,257)
Accrued loss at September 30, 2016	3,625
Less current portion (included in Accrued and other current liabilities)	(1,824)
Accrued loss, non-current portion (included in Other long term liabilities)	$ 1,801

Shareholders_ Equity (Accumulat

Shareholders’ Equity (Accumulated Other Comprehensive Income (Loss)) (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015	Dec. 31, 2015
Accumulated Other Comprehensive Income (Loss) [Roll Forward]
Accumulated other comprehensive income (loss), beginning of period			$ 120,683
Unrealized gains (losses), net of tax effects of $42, $(56), $141 and $0	$ 72	$ (596)	239	$ (881)
Total other comprehensive income (loss)	500	(1,740)	722	(4,022)
Accumulated other comprehensive income (loss) balance, end of period	99,340		99,340
Total accumulated other comprehensive income (loss), end of period	(58,758)	(59,274)	(58,758)	(59,274)	$ (59,480)
Investments
Accumulated Other Comprehensive Income (Loss) [Roll Forward]
Accumulated other comprehensive income (loss), beginning of period	1,464	1,967	1,297	2,252
Unrealized gains (losses), net of tax effects of $42, $(56), $141 and $0	72	(596)	239	(488)
Reclassification adjustments for losses (gains) included in other income (expense)	0	0	0	(393)
Total other comprehensive income (loss)	72	(596)	239	(881)
Accumulated other comprehensive income (loss) balance, end of period	1,536	1,371	1,536	1,371
Accumulated Other Comprehensive Income (Loss), Tax [Abstract]
Unrealized gains (losses), tax effects	42	(56)	141	0
Reclassification adjustments for losses (gains) included in other income (expense), tax effects	0	0	0	(1)
Foreign currency translation
Accumulated Other Comprehensive Income (Loss) [Roll Forward]
Accumulated other comprehensive income (loss), beginning of period	(60,722)	(59,501)	(60,777)	(57,504)
Translation adjustments	156	(880)	211	(2,877)
Reclassification adjustments for losses (gains) included in other income (expense)	272	(264)	272	(264)
Total other comprehensive income (loss)	428	(1,144)	483	(3,141)
Accumulated other comprehensive income (loss) balance, end of period	$ (60,294)	$ (60,645)	$ (60,294)	$ (60,645)

Earnings (Loss) Per Share (Calc

Earnings (Loss) 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, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Earnings Per Share [Abstract]
Net income (loss)	$ (3,056)	$ (21,184)	$ (26,574)	$ (73,434)
Weighted average common shares outstanding used to compute basic EPS	36,805	36,191	36,693	36,134
Dilutive effect of stock based awards	0	0	0	0
Weighted average common shares outstanding used to compute diluted EPS	36,805	36,191	36,693	36,134
Basic EPS (USD per share)	$ (0.08)	$ (0.59)	$ (0.72)	$ (2.03)
Diluted EPS (USD per share)	$ (0.08)	$ (0.59)	$ (0.72)	$ (2.03)

Earnings (Loss) Per Share (Addi

Earnings (Loss) Per Share (Additional Information) (Detail) - shares shares in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Earnings Per Share [Abstract]
Shares of common stock excluded from the calculation of diluted net income per share because of antidilutive effect	4.6	5.7	4.8	6

Segment Information (Additional

Segment Information (Additional Information) (Detail)	9 Months Ended
	Sep. 30, 2016Segment
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, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Segment Reporting Information [Line Items]
Revenue	[1]	$ 31,051	$ 30,823	$ 89,015	$ 95,374
Cost of revenue	[2]	16,740	18,090	47,610	54,469
Gross profit		14,311	12,733	41,405	40,905
Operating expenses		22,700	34,695	72,210	102,586
Operating income (loss)		(8,389)	(21,962)	(30,805)	(61,681)
Operating Segments | Consumer Media
Segment Reporting Information [Line Items]
Revenue		6,482	6,495	18,608	21,765
Cost of revenue		1,507	3,142	5,485	10,173
Gross profit		4,975	3,353	13,123	11,592
Operating expenses		4,271	6,421	13,940	19,882
Operating income (loss)		704	(3,068)	(817)	(8,290)
Operating Segments | Mobile Services
Segment Reporting Information [Line Items]
Revenue		17,683	16,484	51,445	49,566
Cost of revenue		13,026	12,512	36,347	36,802
Gross profit		4,657	3,972	15,098	12,764
Operating expenses		8,075	11,093	26,653	35,153
Operating income (loss)		(3,418)	(7,121)	(11,555)	(22,389)
Operating Segments | Games
Segment Reporting Information [Line Items]
Revenue		6,886	7,844	18,962	24,043
Cost of revenue		2,203	2,513	5,865	7,593
Gross profit		4,683	5,331	13,097	16,450
Operating expenses		4,649	6,431	14,669	23,833
Operating income (loss)		34	(1,100)	(1,572)	(7,383)
Corporate
Segment Reporting Information [Line Items]
Cost of revenue		4	(77)	(87)	(99)
Operating expenses		5,705	10,750	16,948	23,718
Operating income (loss)		$ (5,709)	$ (10,673)	$ (16,861)	$ (23,619)
[1]	Quarters Ended September 30,Components of Revenue2016 2015License Fees7,850 7,049Service Revenue23,201 23,774Net Revenue31,051 30,823 Nine Months Ended September 30,Components of Cost of Revenue2016 2015License Fees$20,305 $21,259Service Revenue68,710 74,115Net Revenue$89,015 $95,374
[2]	Quarters Ended September 30,Components of Cost of Revenue2016 2015License Fees1,755 1,877Service Revenue14,985 16,213Net Revenue Costs16,740 18,090 Nine Months Ended September 30,Components of Cost of Revenue2016 2015License Fees$4,458 $5,048Service Revenue43,152 49,421Net Revenue Costs$47,610 $54,469

Segment Information (Revenue by

Segment Information (Revenue by Geographic Region) (Detail) - USD ($) $ in Thousands		3 Months Ended		9 Months Ended
		Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenue	[1]	$ 31,051	$ 30,823	$ 89,015	$ 95,374
United States
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenue		10,642	11,460	31,379	36,112
Europe
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenue		3,288	3,670	10,002	11,561
Republic of Korea
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenue		10,582	9,569	30,227	28,268
Rest of the World
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenue		$ 6,539	$ 6,124	$ 17,407	$ 19,433
[1]	Quarters Ended September 30,Components of Revenue2016 2015License Fees7,850 7,049Service Revenue23,201 23,774Net Revenue31,051 30,823 Nine Months Ended September 30,Components of Cost of Revenue2016 2015License Fees$20,305 $21,259Service Revenue68,710 74,115Net Revenue$89,015 $95,374

Segment Information (Long-Lived

Segment Information (Long-Lived Assets by Geographic Region) (Detail) - USD ($) $ in Thousands	Sep. 30, 2016	Dec. 31, 2015
Revenues from External Customers and Long-Lived Assets [Line Items]
Long-lived assets	$ 20,077	$ 24,016
United States
Revenues from External Customers and Long-Lived Assets [Line Items]
Long-lived assets	13,626	16,821
Europe
Revenues from External Customers and Long-Lived Assets [Line Items]
Long-lived assets	4,194	4,898
Republic of Korea
Revenues from External Customers and Long-Lived Assets [Line Items]
Long-lived assets	211	282
Rest of the World
Revenues from External Customers and Long-Lived Assets [Line Items]
Long-lived assets	$ 2,046	$ 2,015