Realnetworks (RNWK) 10-K 27 Feb 17 2016 FY Annual report Financial data

Document and Entity Information

Document and Entity Information - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2016	Feb. 24, 2017	Jun. 30, 2016
Document and Entity Information [Abstract]
Document Type	10-K
Amendment Flag	false
Document Period End Date	Dec. 31, 2016
Document Fiscal Year Focus	2,016
Document Fiscal Period Focus	FY
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		37,017,924
Entity Well-known Seasoned Issuer	No
Entity Current Reporting Status	Yes
Entity Voluntary Filers	No
Entity Public Float			$ 99

CONSOLIDATED BALANCE SHEETS

CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Dec. 31, 2016	Dec. 31, 2015
Current assets:
Cash and cash equivalents	$ 33,721	$ 47,315
Short-term investments	43,331	51,814
Trade accounts receivable, net of allowances	22,162	22,511
Deferred costs, current portion	760	460
Prepaid expenses and other current assets	4,910	7,140
Total current assets	104,884	129,240
Equipment, software, and leasehold improvements, at cost:
Equipment and software	46,231	66,702
Leasehold improvements	3,317	3,122
Total equipment, software, and leasehold improvements	49,548	69,824
Less accumulated depreciation and amortization	44,294	61,024
Net equipment, software, and leasehold improvements	5,254	8,800
Restricted cash equivalents and investments	2,700	2,890
Available for sale securities	0	1,721
Other assets	1,742	2,307
Deferred costs, non-current portion	1,246	212
Deferred tax assets, net	816
Deferred tax assets, net		957
Other intangible assets, net	938	2,136
Goodwill	12,857	13,080
Total assets	130,437	161,343
Current liabilities:
Accounts payable	18,225	17,050
Accrued and other current liabilities	15,425	17,320
Commitment to Rhapsody	1,500	0
Deferred revenue, current portion	3,430	3,497
Total current liabilities	38,580	37,867
Deferred revenue, non-current portion	240	105
Deferred rent	748	620
Deferred tax liabilities	87
Deferred tax liabilities		88
Other long-term liabilities	2,201	1,980
Total liabilities	41,856	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 37,501 shares in 2016 and 36,298 shares in 2015	37	36
Additional paid-in capital	633,928	627,316
Accumulated other comprehensive loss	(61,645)	(59,480)
Retained deficit	(483,739)	(447,189)
Total shareholders’ equity	88,581	120,683
Total liabilities and shareholders’ equity	130,437	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

CONSOLIDATED BALANCE SHEETS (Pa

CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares	Dec. 31, 2016	Dec. 31, 2015
Preferred stock, par value (in dollars per share)	$ 0.001	$ 0.001
Preferred stock, shares issued	0	0
Preferred stock, shares outstanding	0	0
Common stock, par value (in dollars per share)	$ 0.001	$ 0.001
Common stock, authorized	250,000,000	250,000,000
Common stock, issued	37,501,000	36,298,000
Common stock, outstanding	37,501,000	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

CONSOLIDATED STATEMENTS OF OPER

CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS) - USD ($) shares in Thousands, $ in Thousands		12 Months Ended
		Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Income Statement [Abstract]
Net revenue	[1]	$ 120,468	$ 125,296	$ 156,212
Cost of revenue	[2]	64,968	70,297	76,381
Extinguishment of liability		0	0	(10,580)
Gross profit		55,500	54,999	90,411
Operating expenses:
Research and development		29,923	43,626	52,765
Sales and marketing		31,608	48,231	66,926
General and administrative		27,415	24,549	34,001
Restructuring and other charges		1,489	5,279	4,992
Lease exit and related charges		2,239	2,501	880
Total operating expenses		92,674	124,186	159,564
Operating (loss) income		(37,174)	(69,187)	(69,153)
Other income (expenses):
Interest income, net		449	680	556
Gain (loss) on sale of equity and other investments, net		8,473	(159)	2,371
Equity in net loss of Rhapsody investment		(6,533)	(14,521)	(4,452)
Other income (expense), net		(643)	506	143
Total other income (expenses), net		1,746	(13,494)	(1,382)
Income (loss) before income taxes		(35,428)	(82,681)	(70,535)
Income tax expense (benefit)		1,122	(834)	1,280
Net income (loss)		$ (36,550)	$ (81,847)	$ (71,815)
Basic net income (loss) (in dollars per share)		$ (0.99)	$ (2.26)	$ (2)
Diluted net income (loss) (in dollars per share)		$ (0.99)	$ (2.26)	$ (2)
Shares used to compute basic net income (loss) per share		36,781	36,165	35,947
Shares used to compute diluted net income (loss) per share		36,781	36,165	35,947
Comprehensive income (loss):
Unrealized investment holding gains (losses), net of reclassification adjustments		$ (1,303)	$ (955)	$ (4,145)
Foreign currency translation adjustments, net of reclassification adjustments		(862)	(3,273)	(3,412)
Net current period other comprehensive income		(2,165)	(4,228)	(7,557)
Net income (loss)		(36,550)	(81,847)	(71,815)
Comprehensive income (loss)		$ (38,715)	$ (86,075)	$ (79,372)
[1]	December 31, 2016 December 31, 2015 December 31, 2014Components of Revenue License Fees27,846 28,422 28,308Service Revenue92,622 96,874 127,904Net Revenue120,468 125,296 156,212
[2]	December 31, 2016 December 31, 2015 December 31, 2014Components of Cost of Revenue License Fees6,062 6,381 8,012Service Revenue58,906 63,916 68,369Net Revenue Costs64,968 70,297 76,381

CONSOLIDATED STATEMENTS OF OPE5

CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS) (Parenthetical) - USD ($) $ in Thousands		12 Months Ended
		Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Components of net revenue:
License fees		$ 27,846	$ 28,422	$ 28,308
Service revenue		92,622	96,874	127,904
Net revenue	[1]	120,468	125,296	156,212
Components of cost of revenue:
License fees		6,062	6,381	8,012
Service revenue		58,906	63,916	68,369
Cost of revenue	[2]	$ 64,968	$ 70,297	$ 76,381
[1]	December 31, 2016 December 31, 2015 December 31, 2014Components of Revenue License Fees27,846 28,422 28,308Service Revenue92,622 96,874 127,904Net Revenue120,468 125,296 156,212
[2]	December 31, 2016 December 31, 2015 December 31, 2014Components of Cost of Revenue License Fees6,062 6,381 8,012Service Revenue58,906 63,916 68,369Net Revenue Costs64,968 70,297 76,381

CONSOLIDATED STATEMENTS OF CASH

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Statement of Cash Flows [Abstract]
Net income (loss)	$ (36,550)	$ (81,847)	$ (71,815)
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:
Depreciation and amortization	7,057	10,410	11,959
Stock-based compensation	5,424	4,698	5,204
Equity in net loss of Rhapsody	6,533	14,521	4,452
Lease exit and related charges	2,239	2,501	668
Deferred income taxes, net	130	(1,558)	(237)
Loss (gain) on investments, net	(8,473)	159	(2,371)
Realized translation loss (gain)	272	(264)	(48)
Extinguishment of liability	0	0	(10,580)
Fair value of warrants granted in 2015, net of subsequent mark to market adjustments in 2016 and 2015	280	(1,053)	0
Net change in certain operating assets and liabilities:
Trade accounts receivable	(129)	(8,236)	8,732
Deferred costs, prepaid expenses and other assets	964	2,606	1,982
Accounts payable	1,571	(465)	(769)
Accrued and other liabilities	(3,646)	(10,454)	(7,421)
Net cash provided by (used in) operating activities	(24,328)	(68,982)	(60,244)
Cash flows from investing activities:
Purchases of equipment, software, and leasehold improvements	(2,438)	(1,319)	(2,460)
Proceeds from sale of equity and other investments	4,967	459	2,754
Purchases of short-term investments	(75,766)	(72,136)	(81,216)
Proceeds from sales and maturities of short-term investments	84,249	78,775	97,683
Decrease in restricted cash equivalents and investments	190	110	0
Acquisitions	(150)	(161)	(733)
Advance to Rhapsody	(3,500)	(5,000)	0
Repayment from Rhapsody	0	5,000	0
Proceeds from the sale of Slingo and social casino business	4,000	10,000	0
Other	0	0	(467)
Net cash provided by (used in) investing activities	11,552	15,728	15,561
Cash flows from financing activities:
Proceeds from issuance of common stock (stock options and stock purchase plan)	535	426	812
Tax payments from shares withheld upon vesting of restricted stock	(880)	(85)	(407)
Payment of contingent consideration	0	0	(1,042)
Net cash provided by (used in) financing activities	(345)	341	(637)
Effect of exchange rate changes on cash and cash equivalents	(473)	(3,025)	(2,662)
Net increase (decrease) in cash and cash equivalents	(13,594)	(55,938)	(47,982)
Cash and cash equivalents, beginning of year	47,315	103,253	151,235
Cash and cash equivalents, end of year	33,721	47,315	103,253
Supplemental disclosure of cash flow information:
Cash received from income tax refunds	534	1,102	654
Cash paid for income taxes	2,072	1,491	1,882
Non-cash investing activities:
Increase (decrease) in accrued purchases of equipment, software, and leasehold improvements	26	(150)	(297)
Acquisition of intangible assets	$ 0	$ 102	$ 0

CONSOLIDATED STATEMENTS OF SHAR

CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY AND NONCONTROLLING INTEREST - USD ($) shares in Thousands, $ in Thousands	Total	Common Stock	Additional Paid-In Capital	Accumulated Other Comprehensive Income (Loss)	Retained Earnings (Deficit)
Accumulated other comprehensive income (loss), beginning of period at Dec. 31, 2013	$ 268,981	$ 36	$ 610,167	$ (47,695)	$ (293,527)
Balances (shares) at Dec. 31, 2013		35,833
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Common stock issued for exercise of stock options, employee stock purchase plan, and vesting of restricted shares, net of tax payments from shares withheld upon vesting of restricted stock	405	$ 0	405
Common stock issued for exercise of stock options, employee stock purchase plan, and vesting of restricted shares, net of tax payments from shares withheld upon vesting of restricted stock (shares)		266
Share of Rhapsody equity transactions	1,980		1,980
Stock-based compensation	5,204		5,204
Other comprehensive income (loss)	(7,557)			(7,557)
Net income (loss)	(71,815)				(71,815)
Accumulated other comprehensive loss balance, end of period at Dec. 31, 2014	197,198	$ 36	617,756	(55,252)	(365,342)
Balances (shares) at Dec. 31, 2014		36,099
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Common stock issued for exercise of stock options, employee stock purchase plan, and vesting of restricted shares, net of tax payments from shares withheld upon vesting of restricted stock	341	$ 0	341
Common stock issued for exercise of stock options, employee stock purchase plan, and vesting of restricted shares, net of tax payments from shares withheld upon vesting of restricted stock (shares)		199
Share of Rhapsody equity transactions	4,521		4,521
Stock-based compensation	4,698		4,698
Other comprehensive income (loss)	(4,228)			(4,228)
Net income (loss)	(81,847)				(81,847)
Accumulated other comprehensive loss balance, end of period at Dec. 31, 2015	120,683	$ 36	627,316	(59,480)	(447,189)
Balances (shares) at Dec. 31, 2015		36,298
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Common stock issued for exercise of stock options, employee stock purchase plan, and vesting of restricted shares, net of tax payments from shares withheld upon vesting of restricted stock	(344)	$ 1	(345)
Common stock issued for exercise of stock options, employee stock purchase plan, and vesting of restricted shares, net of tax payments from shares withheld upon vesting of restricted stock (shares)		1,203
Share of Rhapsody equity transactions	1,533		1,533
Stock-based compensation	5,424		5,424
Other comprehensive income (loss)	(2,165)			(2,165)
Net income (loss)	(36,550)				(36,550)
Accumulated other comprehensive loss balance, end of period at Dec. 31, 2016	$ 88,581	$ 37	$ 633,928	$ (61,645)	$ (483,739)
Balances (shares) at Dec. 31, 2016		37,501

Description of Business and Sum

Description of Business and Summary of Significant Accounting Policies	12 Months Ended
	Dec. 31, 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 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 Annual Report on Form 10-K for the year ended December 31, 2016 (10-K), RealNetworks, Inc. and subsidiaries is referred to as “RealNetworks”, the “Company”, “we”, “us”, or “our”. Basis of Presentation. The consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries. Intercompany balances and transactions have been eliminated in consolidation. The consolidated financial statements reflect all 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 year ended December 31, 2016 are not necessarily indicative of the results that may be expected for any subsequent periods. Use of Estimates. The preparation of financial statements in conformity with accounting principles generally accepted in the U.S. (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. Cash and Cash Equivalents, Short-Term Investments, and Available-for-Sale Securities. We consider all short-term investments with a remaining contractual maturity at date of purchase of three months or less to be cash equivalents. We have classified as available-for-sale all marketable debt and equity securities for which there is determinable fair market value and there are no restrictions on our ability to sell. Available-for-sale securities are carried at fair value with unrealized gains and losses reported in accumulated other comprehensive income (loss) (AOCI) in shareholders' equity, net of any applicable income taxes. 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. Realized gains and losses and any declines in value judged to be other-than-temporary on available-for-sale securities are included in other income (expense), net. Realized and unrealized gains and losses on available-for-sale securities are determined using the specific identification method. Trade Accounts Receivable. Trade accounts receivable consist of amounts due from customers and do not bear interest. The allowance for doubtful accounts and sales returns is our estimate of the amount of probable credit losses and returns in our existing accounts receivable. We determine the allowances based on analysis of historical bad debts, customer concentrations, customer credit-worthiness, return history and current economic trends. We review the allowances for doubtful accounts and sales returns quarterly. Past due balances over 90 days and specified other balances are reviewed individually for collectability. All other balances are reviewed on an aggregate basis. Account balances are written off against the allowance after all reasonable means of collection have been exhausted and the potential for recovery is considered remote. We do not have any off-balance sheet credit exposure related to our customers. Concentration of Credit Risk. Financial instruments that potentially expose the Company to concentrations of credit risk consist primarily of cash and cash equivalents, short-term investments, and accounts receivable. Short-term investments consist of U.S. government and government agency securities, corporate notes and bonds, and municipal securities. We derive a portion of our revenue from a large number of individual consumers spread globally. We also derive revenue from several large customers. If the financial condition or results of operations of any one of the large customers deteriorates substantially, our operating results could be adversely affected. To reduce credit risk, management performs ongoing credit evaluations of the financial condition of significant customers. We do not generally require collateral and we maintain an allowance for estimated credit losses on customer accounts when considered necessary. Depreciation and Amortization. Depreciation of equipment and software, as well as amortization of leasehold improvements is computed using the straight-line method over the lesser of the estimated useful lives of the assets or the related lease term. The useful life of equipment and software is generally three to five years. Depreciation and amortization expense of these assets during the years ended December 31, 2016 , 2015 , and 2014 was $6.0 million , $8.1 million and $8.5 million , respectively. Equity Method Investment. We use the equity method in circumstances where we have the ability to exert significant influence, but not control, over an investee or joint venture. We initially record our investment based on a fair value analysis of the investment. We record our percentage interest in the investee's recorded income or loss and changes in the investee's capital under this method, which will increase or decrease the reported value of our investment. See Note 4, Rhapsody Joint Venture for additional information. We evaluate impairment of an investment accounted for under the equity method if events and circumstances warrant. An impairment charge would be recorded if a decline in the fair value of an equity investment below its carrying amount were determined to be other than temporary. In determining if a decline is other than temporary, we consider factors such as the length of time and extent to which the fair value of the investment has been less than the carrying amount of the investee or joint venture, the near-term and longer-term operating and financial prospects of the investee or joint venture and our intent and ability to hold the investment for a period of time sufficient to allow for any anticipated recovery. Deferred Costs. We defer certain costs on projects for service revenues and system sales. Deferred costs consist primarily of direct and incremental costs to customize and install systems, as defined in individual customer contracts, including costs to acquire hardware and software from third parties and payroll and related costs for employees and other third parties. Deferred costs are capitalized during the implementation period. We recognize such costs as a component of cost of revenue, the timing of which is dependent upon the revenue recognition policy by contract. At each balance sheet date, we review deferred costs to ensure they are ultimately recoverable. Any anticipated losses on uncompleted contracts are recognized when evidence indicates the estimated total cost of a contract exceeds its estimated total revenue or if actual deferred costs exceed estimated contractual revenue. Assessing the recoverability of deferred costs is based on significant assumptions and estimates, including future revenue and cost of sales. Significant or sustained decreases in revenue or increases in cost of sales in future periods could result in impairments of deferred project costs and prepaid royalty advances. We cannot accurately predict the amount and timing of any such impairments. Should deferred project costs or prepaid royalty advances become impaired, we would record the appropriate charge, which could have a material adverse effect on our financial condition and results of operations. In 2014 we impaired $0.7 million in deferred project costs and the charge was included in cost of revenue in the accompanying consolidated statements of operations and comprehensive income (loss). No such charges were incurred in 2016 or 2015. Definite-Lived Tangible and Intangible Assets. Definite-lived tangible assets include equipment, software and leasehold improvements and are carried at cost less accumulated depreciation and amortization. Definite-lived intangible assets consist primarily of the fair value of customer agreements and contracts, and developed technology acquired in business combinations and are amortized over their estimated useful lives. We review these assets for impairment whenever events or changes in circumstances indicate the carrying amount of such assets may not be recoverable. If the carrying amount of an asset group is not recoverable, an impairment loss is recognized if the carrying amount of the asset group exceeds its estimated fair value, which is generally determined as the present value of estimated future cash flows to a market participant. Our impairment analysis is based on significant assumptions of future results, including operating and cash flow projections. Significant or sustained declines in future revenue or cash flows, or adverse changes in our business climate, among other factors, could result in the need to record an impairment charge in future periods. Goodwill. We test goodwill for impairment on an annual basis, in our fourth quarter, or more frequently if circumstances indicate reporting unit carrying values may exceed their fair values. Circumstances that may indicate a reporting unit's carrying value exceeds its fair value include, but are not limited to: poor economic performance relative to historical or projected future operating results; significant negative industry, economic or company specific trends; changes in the manner of our use of the assets or the plans for our business; and loss of key personnel. When evaluating goodwill for impairment, based upon our annual test or due to changes in circumstances described above, we first perform a qualitative assessment to determine if the fair value of a reporting unit is more likely than not less than the reporting unit's carrying amount including goodwill. If this assessment indicates it is more likely than not, we then compare the carrying value of the reporting unit to the estimated fair value of the reporting unit. If the carrying value of the reporting unit exceeds the estimated fair value, we then calculate the implied estimated fair value of goodwill for the reporting unit and compare it to the carrying amount of goodwill for the reporting unit. If the carrying amount of goodwill exceeds the implied estimated fair value, an impairment charge to current operations is recorded to reduce the carrying value to implied estimated value. Significant judgment is required in determining the reporting units and assessing fair value of the reporting units. Fair Value. Fair value is the price that would be received from selling an asset or paid in transfering a liability in an orderly transaction between market participants at the measurement date. Our fair value measurements consider the principal or most advantageous market in which we would transact and the market-based risk measurements or assumptions that market participants would use in pricing the asset or liability, such as inherent risk, transfer restrictions and credit risk. Fair values are determined based on three levels of inputs: • Level 1: Quoted prices in active markets for identical assets or liabilities • Level 2: Directly or indirectly observed inputs for the asset or liability, including quoted prices for similar assets or liabilities in active markets and quoted prices for identical or similar assets or liabilities in markets that are not active • Level 3: Significant unobservable inputs that reflect our own estimates of assumptions that market participants would use Research and Development. Costs incurred in research and development are expensed as incurred. Software development costs are capitalized when a product’s technological feasibility has been established through the date the product is available for general release to customers. Other than internal use software, we have not capitalized any software development costs, as technological feasibility is generally not established until a working model is completed, at which time substantially all development is complete. Revenue Recognition. We recognize revenue when persuasive evidence of an arrangement exists, delivery has occurred, the sales price is fixed or determinable, and collection is probable. Physical products are considered delivered to the customer once they have been shipped and title and risk of loss have been transferred. For online sales, the products or services are considered delivered at the time the products or services are made available, digitally, to the end user. We recognize revenue on a gross or net basis. In most arrangements, we contract directly with end user customers, and are the primary obligor. In such arrangements, we recognize revenue on a gross basis. In some cases, we utilize third-party distributors who are the primary obligor to sell products or services directly to end user customers. In such instances, we recognize revenue on a net basis. In our direct to consumer operations, we derive revenue through (1) subscriptions sold by our Games segment and subscriptions of SuperPass within our Consumer Media segment, (2) sales of content downloads, software and licenses offered by our Consumer Media, Mobile Services, and Games segments and (3) the sale of advertising and the distribution of third-party products on our websites and in our games. Consumer subscription products are paid in advance, typically for monthly, quarterly or annual duration. Subscription revenue is recognized ratably over the related subscription time period. Revenue from sales of content downloads, software and licenses is recognized at the time the product is made available, digitally, to the end user. Revenue generated from advertising on our websites and from advertising and the distribution of third-party products included in our products is recognized as revenue at the time of delivery. We also generate revenue through business-to-business channels by providing services within our Mobile Services segment enabling mobile carriers to deliver audio and video content to their customers and by selling software licenses and products and related support and other services. Revenue generated from services provided to mobile carriers that enable the delivery of audio and video content to their customers is recognized as the services are provided. Setup fees to build these services are recognized ratably upon launch of the service over the remaining expected term of the service. Non-software revenue arrangements containing multiple elements are divided into separate units of accounting, after being evaluated for specific criteria. If the criteria for separation are met, revenue is allocated to the individual units using the relative fair value method. If the criteria are not met, the elements are treated as one unit of accounting and revenue recognition is delayed until all elements have been delivered. In the case of revenue arrangements containing software, elements are divided into separate units of accounting only when vendor-specific objective evidence has been established. In cases where vendor-specific objective evidence has not been established, undelivered elements are combined into one unit of accounting and are not recognized in revenue until all elements have been delivered. Advertising Expenses. We expense the cost of advertising and promoting our products as incurred. These costs are included in sales and marketing expense and totaled $6.1 million in 2016 , $16.5 million in 2015 and $23.1 million in 2014 . Foreign Currency. The functional currency of the Company’s foreign subsidiaries is the currency of the country in which the subsidiary operates. Assets and liabilities of foreign operations are translated into U.S. dollars using rates of exchange in effect at the end of the reporting period. The net gain or loss resulting from translation is shown as translation adjustment and included in AOCI in shareholders’ equity. Income and expense accounts are translated into U.S. dollars using average rates of exchange. Gains and losses from foreign currency transactions are included in the consolidated statements of operations. Derivative Financial Instruments. We conduct business internationally in several currencies and thus we are exposed to adverse movements in foreign currency exchange rates. A portion of these risks may be managed through the use of financial derivatives, but fluctuations in foreign exchange rates could impact our results of operations and financial position. Where appropriate, we manage foreign currency risk for certain material short-term intercompany balances through the use of foreign currency forward contracts. These contracts require us to exchange currencies at rates agreed upon at the contract’s inception. Because the impact of movements in currency exchange rates on forward contracts offsets the related impact on the short-term intercompany balances, these financial instruments help alleviate the risk that might otherwise result from certain changes in currency exchange rates. We do not designate foreign exchange forward contracts related to short-term intercompany accounts as hedges and, accordingly, we adjust these instruments to fair value through our results of operations. However, we may periodically hedge a portion of our foreign exchange exposures associated with material firmly committed transactions and long-term investments. All derivatives, whether designated in hedging relationships or not, are recorded on the balance sheet at fair value. If the derivative is designated a hedge, then depending on the nature of the hedge, changes in fair value will either be recorded immediately in results of operations, or be recognized in AOCI until the hedged item is recognized in results of operations. We had nominal amounts of derivatives outstanding at either December 31, 2016 or 2015 . Accounting for Taxes Collected from Customers. Our revenues are reported net of sales and other transaction taxes that are collected from customers and remitted to taxing authorities. Income Taxes. We compute income taxes using the asset and liability method, under which deferred income taxes are provided for temporary differences between financial reporting basis and tax basis of our assets and liabilities and operating loss and tax credit carryforwards. We record a valuation allowance when it is more likely than not that some portion or all of the deferred tax assets will not be realized. The ultimate realization of the deferred tax assets depends on the ability to generate sufficient taxable income of the appropriate character in the appropriate taxing jurisdictions. Adjustments to the valuation allowance could be required in the future if we estimate that the amount of deferred tax assets to be realized is more or less than the net amount we have recorded. Any increase or decrease in the valuation allowance could have the effect of increasing or decreasing the income tax provision in the statement of operations. Deferred tax assets and liabilities and operating loss and tax credit carryforwards are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences and operating loss and tax credit carryforwards are expected to be recovered or settled. 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. We recognize the tax benefit from an uncertain tax position only if it is more likely than not that the tax position will be sustained on examination by the taxing authorities, based on the technical merits of the position. The tax benefits recognized in the financial statements from such a position are measured based on the largest benefit that has a greater than 50% likelihood of being realized upon ultimate settlement. We recognize accrued interest and penalties related to uncertain tax positions as a component of income tax expense. Stock-Based Compensation. Stock-based compensation cost is measured at the grant date based on the fair value of the award and is recognized as expense over the requisite service period, which is the vesting period. We use the Black-Scholes option-pricing model or other appropriate valuation models such as Monte Carlo simulation to determine the fair value of stock-based option awards. The fair value of restricted stock awards is based on the closing market price of our common stock on the award date. Generally, we recognize the compensation cost for awards on a straight-line basis for the entire award, over the applicable vesting period. For performance-based awards, expense is recognized when it is probable the performance goal will be achieved, however if the likelihood becomes improbable, that expense is reversed. For market-based stock options, fair value is measured at the grant date using the Monte Carlo simulation model and we recognize compensation cost for these awards on a straight-line basis over the requisite service period for each separately vesting portion of the awards. For our employee stock purchase plan, compensation expense is measured based on the discount the employee is entitled to upon purchase. The valuation models for stock-based option awards require various highly judgmental assumptions including volatility in our common stock price and expected option life. If any of the assumptions used in the valuation models change significantly, stock-based compensation expense for new awards may differ materially in the future from the amounts recorded in the consolidated statements of operations. For all awards, we also estimate forfeitures at the time of grant and revise those estimates in subsequent periods if actual forfeitures differ from those estimates. Net Income 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.

Recent Accounting Pronouncement

Recent Accounting Pronouncements	12 Months Ended
	Dec. 31, 2016
Accounting Changes and Error Corrections [Abstract]
Recent Accounting Pronouncements	Note 2. Recent Accounting Pronouncements In May 2014, the Financial Accounting Standards Board (FASB) issued new revenue recognition guidance, which was subsequently updated and amended in 2015 and 2016. The guidance requires 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. While we are evaluating all of our revenue streams, we currently expect the greatest impact in certain areas where we will be required to estimate usage which drives the underlying revenue. Under current guidance, we do not recognize revenues until we achieve fixed and determinable status, which would be at a later date. However, our analysis is not complete and we may identify other areas of additional impact. The guidance permits two methods of adoption: the full retrospective method where the standard would be applied to each prior reporting period presented and the cumulative effect of applying the standard would be recognized at the earliest period shown, or the modified retrospective method, in which case the cumulative effect of applying the standard would be recognized at the date of initial application. While we are currently evaluating the method of adoption and the quantitative impact of the new revenue standard, as amended, we currently expect to adopt using the modified retrospective method in the first quarter of fiscal year 2018. 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, including interim periods within 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 adopted this guidance on January 1, 2017. The adoption of this guidance will not have any impact 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	12 Months Ended
	Dec. 31, 2016
Business Combinations [Abstract]
Acquisitions and Disposals	Note 3. Acquisitions and 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 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 in August 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, in August 2017. We recognized the gain related to the 2016 payment in Gain (loss) on investments, net, on the statement of operations in 2016. Based on several factors, including the timing of the receipt of the remaining consideration, we deferred the remaining gain of $4.0 million and will recognize that gain upon realization. As this sale did not represent a strategic shift in our business and we do not believe it will have a major impact on our future operations and financial results, it did not meet the criteria for discontinued operations under GAAP. As such, we recorded in 2015 the related foreign currency gain of $0.5 million in Other income and expense and an income tax benefit of $1.6 million from the reversal of a Slingo deferred tax liability as described below. 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 was 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.

Rhapsody Joint Venture

Rhapsody Joint Venture	12 Months Ended
	Dec. 31, 2016
Equity Method Investments and Joint Ventures [Abstract]
Rhapsody Joint Venture	Note 4. Rhapsody Joint Venture As of December 31, 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 $6.5 million , $14.5 million , and $4.5 million for the years ended December 31, 2016 , 2015 and 2014 , respectively. 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, 2015, the carrying value of our Rhapsody equity investment was zero , as we did not have further commitment to provide future support to Rhapsody. Unless we commit to provide future financial support to Rhapsody, we do not record our share of Rhapsody losses that would reduce our carrying value of Rhapsody below zero, and instead we track those suspended losses separately. In December 2016, RealNetworks entered into an agreement to loan up to $5 million to Rhapsody for general operating purposes, as did the other 42% owner of Rhapsody, Columbus Nova. In December, $3.5 million of the loan was made by each lender. Both loans contain an additional commitment to loan to Rhapsody the remaining $1.5 million of the $5 million total at its request, during any point from January 1, 2017 to January 31, 2017. As of December 31, 2016, this additional commitment was reflected on our consolidated balance sheets as Commitment to Rhapsody. Both parties subsequently funded the remaining $1.5 million commitment on January 24, 2017. The loans are subordinate to all existing loans, and bear an interest rate of 10% per annum, which accretes into the outstanding principal balance and will be due at the December 7, 2017 maturity date. We have recognized previously suspended Rhapsody losses, which we have discussed above, up to the full $5.0 million funding commitment in the Equity in net loss of Rhapsody investment line item in our consolidated statements of operations. In March 2015, RealNetworks extended a $5.0 million loan to Rhapsody, as did the other 42% 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 2015, Rhapsody's external strategic partner repaid its loan to Rhapsody and Rhapsody then repaid its loan to us and the other 42% owner in full. Under the loan, Rhapsody paid us approximately $0.2 million of interest in 2015. Summarized financial information for Rhapsody, which represents 100% of their financial information, is as follows (in thousands): Year ended December 31, Year ended December 31, Year ended December 31, Net revenue $ 208,085 $ 201,987 $ 173,484 Gross profit 38,407 32,761 32,145 Net loss (14,913 ) (35,479 ) (21,336 ) As of December 31, 2016 As of December 31, 2015 Current assets $ 55,831 $ 53,274 Non-current assets 18,273 20,520 Current liabilities 104,906 92,794 Non-current liabilities 20,238 20,295

Fair Value Measurements

Fair Value Measurements	12 Months Ended
	Dec. 31, 2016
Fair Value Disclosures [Abstract]
Fair Value Measurements	Note 5. Fair Value Measurements Items Measured at Fair Value on a Recurring Basis The following tables present information about our financial assets that have been measured at fair value on a recurring basis as of December 31, 2016 and 2015 , and indicates the fair value hierarchy of the valuation inputs utilized to determine fair value (in thousands). Fair Value Measurements as of Amortized Cost as of December 31, 2016 December 31, 2016 Level 1 Level 2 Level 3 Total Cash and cash equivalents: Cash $ 32,585 $ — $ — $ 32,585 $ 32,585 Money market funds 136 — — 136 136 Corporate notes and bonds — 1,000 — 1,000 1,000 Total cash and cash equivalents 32,721 1,000 — 33,721 33,721 Short-term investments: Corporate notes and bonds — 43,331 — 43,331 43,343 Total short-term investments — 43,331 — 43,331 43,343 Restricted cash equivalents and investments — 2,700 — 2,700 2,700 Warrant issued by Rhapsody (included in Other assets) — — 773 773 — Total $ 32,721 $ 47,031 $ 773 $ 80,525 $ 79,764 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 investments 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 December 31, 2016 and 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 2016 , 2015 , and 2014 were not significant. Gross unrealized gains and gross unrealized losses on short-term investment securities as of December 31, 2016 and 2015 were 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 December 31, 2016 are as follows (in thousands): Estimated Fair Value Within one year $ 41,135 Between one year and five years 2,196 Total short-term investments $ 43,331 Our equity investment in a publicly traded company as of December 31, 2015 consisted of J-Stream Inc., a Japanese media services company. This equity investment is accounted for as available for sale. In 2016, we sold the remaining portion of the J-Stream shares we held, resulting in cash proceeds of $3.3 million and a pre-tax gain of $2.5 million , net, reported in Other income (expense), net, in the consolidated statement of operations. In 2015, we sold a portion of the J-Stream shares we held, resulting in cash proceeds of $0.5 million and a pre-tax gain of $0.4 million , reported in Other income (expense), net. In 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 . In February 2015, Rhapsody issued warrants to purchase Rhapsody common shares to each of RealNetworks and Rhapsody's one other stockholder. The warrants were issued as compensation for past services provided by RealNetworks and the other 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 consolidated balance sheets, and as an expense reduction within General and administrative expense in the 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 twelve months ended December 31, 2016 the decrease in the fair value of the warrants was approximately $0.3 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). We did not record any impairments on those assets required to be measured at fair value on a non-recurring basis in 2016 , 2015 or 2014 . See Note 11. 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	12 Months Ended
	Dec. 31, 2016
Receivables [Abstract]
Allowance for Doubtful Accounts Receivable and Sales Returns	Note 6. Allowance for Doubtful Accounts Receivable and Sales Returns Activity in the allowance for doubtful accounts receivable (in thousands): Years ended December 31, 2016 2015 2014 Balance, beginning of year $ 765 $ 1,288 $ 966 Addition (reduction) to allowance 36 (355 ) 433 Amounts written off (152 ) (77 ) — Effects of foreign currency translation (16 ) (91 ) (111 ) Balance, end of year $ 633 $ 765 $ 1,288 Activity in the allowance for sales returns (in thousands): Years ended December 31, 2016 2015 2014 Balance, beginning of year $ 158 $ 354 $ 569 Addition (reduction) to allowance 15 (186 ) (209 ) Amounts written off (3 ) (9 ) (6 ) Effects of foreign currency translation (1 ) (1 ) — Balance, end of year $ 169 $ 158 $ 354 Total, Allowance for Doubtful Accounts Receivable and Sales Returns $ 802 $ 923 $ 1,642 One customer accounted for 64% of trade accounts receivable at December 31, 2016 . One customer accounted for 52% and one other customer accounted for 12% of trade accounts receivable as of December 31, 2015 . One customer accounted for 32% or $38.9 million , of consolidated revenue during the year ended December 31, 2016 , in our Mobile Services segment. One customer accounted for 26% , or $32.9 million , of consolidated revenue during the year ended December 31, 2015 , which is reflected in our Mobile Services segment. One customer accounted for 20% , or $31.9 million , of consolidated revenue during the year ended December 31, 2014 , which is reflected in our Mobile Services segment.

Other Intangible Assets

Other Intangible Assets	12 Months Ended
	Dec. 31, 2016
Goodwill and Intangible Assets Disclosure [Abstract]
Other Intangible Assets	Note 7. Other Intangible Assets Other intangible assets (in thousands): As of December 31, 2016 2015 Gross Amount Accumulated Amortization Net Gross Amount Accumulated Amortization Net Amortizing intangible assets: Customer relationships $ 29,308 $ 28,781 $ 527 $ 30,182 $ 29,236 $ 946 Developed technology 23,574 23,263 311 24,047 23,244 803 Patents, trademarks and tradenames 3,530 3,430 100 3,717 3,398 319 Service contracts 5,205 5,205 — 5,269 5,201 68 Total $ 61,617 $ 60,679 $ 938 $ 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 with no book value to a third party. As discussed in Note 3. Acquisitions and Disposals , $5.7 million worth of intangible assets, net, related to the third quarter 2015 sale of our Slingo and social casino portion of our games business, were disposed. Amortization expense related to other intangible assets during the years ended December 31, 2016 , 2015 , and 2014 was $1.0 million , $2.3 million , and $3.4 million , respectively. Estimated future amortization of other intangible assets (in thousands): 2017 $ 642 2018 296 Total $ 938 No impairments of other intangible assets were recognized in 2016 , 2015 or 2014 .

Goodwill

Goodwill	12 Months Ended
	Dec. 31, 2016
Goodwill and Intangible Assets Disclosure [Abstract]
Goodwill	Note 8. Goodwill Changes in goodwill (in thousands): December 31, 2016 2015 Balance, beginning of year Goodwill $ 323,733 $ 328,008 Accumulated impairment losses (310,653 ) (310,653 ) 13,080 17,355 Increases (decreases) due to current year acquisitions (disposals) — (3,620 ) Effects of foreign currency translation (223 ) (655 ) (223 ) (4,275 ) Balance, end of year Goodwill 323,510 323,733 Accumulated impairment losses (310,653 ) (310,653 ) $ 12,857 $ 13,080 Goodwill by segment (in thousands): December 31, 2016 2015 Consumer Media $ 580 $ 580 Mobile Services 1,979 2,202 Games 10,298 10,298 Total goodwill $ 12,857 $ 13,080 As discussed in Note 3. Acquisitions and Disposals , $3.6 million of goodwill was disposed of in the third quarter 2015 sale of our Slingo and social casino portion of our games business. No impairments of goodwill were recorded in 2016 , 2015 , or 2014 .

Accrued and Other Current Liabi

Accrued and Other Current Liabilities	12 Months Ended
	Dec. 31, 2016
Payables and Accruals [Abstract]
Accrued and Other Current Liabilities	Note 9. Accrued and Other Current Liabilities Accrued and other current liabilities (in thousands): December 31, 2016 December 31, 2015 Royalties and other fulfillment costs $ 2,629 $ 3,094 Employee compensation, commissions and benefits 5,136 5,958 Sales, VAT and other taxes payable 3,258 2,976 Other 4,402 5,292 Total accrued and other current liabilities $ 15,425 $ 17,320

Restructuring Charges

Restructuring Charges	12 Months Ended
	Dec. 31, 2016
Restructuring and Related Activities [Abstract]
Restructuring Charges	Note 10. Restructuring Charges Restructuring and other charges in 2016 , 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 all three years primarily relate 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 year ended December 31, 2016 $ 1,489 Costs incurred and charged to expense for the year ended December 31, 2015 $ 5,279 Costs incurred and charged to expense for the year ended December 31, 2014 $ 4,992 Changes to the accrued restructuring liability (which is included in Accrued and other current liabilities) for 2016 , 2015 and 2014 , (in thousands): Employee Separation Costs Accrued liability as of December 31, 2013 $ 756 Costs incurred and charged to expense for the year ended December 31, 2014 4,992 Cash payments (5,299 ) Accrued liability as of December 31, 2014 449 Costs incurred and charged to expense for the year ended December 31, 2015 5,279 Cash payments (4,324 ) Accrued liability as of December 31, 2015 1,404 Costs incurred and charged to expense for the period to date in 2016 1,489 Cash payments (2,684 ) Accrued liability as of December 31, 2016 $ 209

Lease Exit and Related Charges

Lease Exit and Related Charges	12 Months Ended
	Dec. 31, 2016
Disclosure Changes To Accrued Loss On Excess Office Facilities [Abstract]
Lease Exit and Related Charges	Note 11. Lease Exit and Related Charges As a result of the reduction in use of RealNetworks' office space, primarily in our corporate headquarters in Seattle, Washington, and certain other locations, losses have been recognized representing rent and contractual operating expenses over the remaining life of the leases, including contractual, or estimates of, sublease income expected to be received, and related write-downs of leasehold improvements to their estimated fair value. In 2015, we recorded $2.5 million of losses primarily relating to an approximate 43% reduction of office space at our leased corporate headquarters in Seattle, Washington. In 2016, we recorded additional losses of $2.2 million primarily relating to reduction of our office space at our corporate headquarters, resulting in total reduction of 69% as of December 31, 2016. 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 the accrued loss on excess office facilities (in thousands): Years Ended December 31, 2016 2015 2014 Accrued loss, beginning of year $ 2,595 $ 234 $ 254 Additions and adjustments to the lease loss accrual, including sublease income estimate revision, and related asset write-downs 2,428 2,981 668 Less amounts paid, net of sublease income (1,837 ) (620 ) (688 ) Accrued loss, end of year 3,186 2,595 234 Less current portion (included in Accrued and other current liabilities) (1,024 ) (822 ) (234 ) Accrued loss, non-current portion (included in Other long term liabilities) $ 2,162 $ 1,773 $ —

Shareholders_ Equity

Shareholders’ Equity	12 Months Ended
	Dec. 31, 2016
Equity [Abstract]
Shareholders’ Equity	Note 12. Shareholders’ Equity Accumulated Other Comprehensive Income (Loss) Changes in components of accumulated other comprehensive income (loss) (in thousands): Years Ended December 31, 2016 2015 2014 Investments Accumulated other comprehensive income (loss), beginning of period $ 1,297 $ 2,252 $ 6,397 Unrealized gains (losses), net of tax effects of $10, $0, and $0 1,647 (562 ) (1,774 ) Reclassification adjustments for losses (gains) included in other income (expense), net of tax effects of $0, $0, and $4 (2,950 ) (393 ) (2,371 ) Net current period other comprehensive income (1,303 ) (955 ) (4,145 ) Accumulated other comprehensive income (loss) balance, end of period $ (6 ) $ 1,297 $ 2,252 Foreign currency translation Accumulated other comprehensive income (loss), beginning of period $ (60,777 ) $ (57,504 ) $ (54,092 ) Translation adjustments (1,134 ) (3,009 ) (3,364 ) Reclassification adjustments for losses (gains) included in other income (expense) 272 (264 ) (48 ) Net current period other comprehensive income (862 ) (3,273 ) (3,412 ) Accumulated other comprehensive loss balance, end of period $ (61,639 ) $ (60,777 ) $ (57,504 ) Total accumulated other comprehensive income (loss), end of period $ (61,645 ) $ (59,480 ) $ (55,252 ) Preferred Stock. Each share of Series A preferred stock entitles the holder to one thousand votes and dividends equal to one thousand times the aggregate per share amount of dividends declared on the common stock. There are no shares of Series A preferred stock outstanding. Undesignated preferred stock will have rights and preferences that are determinable by the Board of Directors if and when determination of a new series of preferred stock has been established.

Employee Stock and Benefit Plan

Employee Stock and Benefit Plans	12 Months Ended
	Dec. 31, 2016
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Employee Stock and Benefit Plans	Note 13. Employee Stock and Benefit Plans Equity Compensation Plans. Under our equity incentive plans we may grant various types of equity awards to employees and Directors. We have granted time-vest and performance-vest stock options and time-vest and performance-vest restricted stock. Generally, options vest based on continuous employment, over a four -year period. The options generally expire seven years from the date of grant and are exercisable at the market value of the common stock at the grant date. Time-vest restricted stock awards generally vest based on continuous employment over a two or four -year period. Performance-based awards vest if the specified performance targets are met and the grantee remains employed over the required period. The performance targets for these awards are generally based on the achievement of company-specific financial results. For these performance-based awards, expense is recognized when it is probable the performance goal will be achieved. We have also issued market-based performance stock options to certain employees. These awards vest if the market condition is met and the grantee remains employed over the requisite service period. We issue new shares of common stock upon exercise of stock options and the vesting of restricted stock. As of December 31, 2016 there were 6.5 million shares of common stock authorized for future equity awards. Each restricted stock unit granted reduces and each restricted stock unit forfeited or canceled increases the shares available for future grant by a factor of 1.6 shares. Each stock option granted reduces and each stock option forfeited or canceled increases the shares available for future grant by a factor of one share. We also have an employee stock purchase plan, under which 0.3 million shares of common stock are authorized for future issuance as of December 31, 2016 . Stock-based compensation expense recognized in our consolidated statements of operations includes amounts related to stock options, restricted stock, and employee stock purchase plans and was as follows (in thousands): Years Ended December 31, 2016 2015 2014 Total stock-based compensation expense $ 5,424 $ 4,698 $ 5,204 The total stock-based compensation amounts disclosed above are recorded in the respective line items within operating expenses in the consolidated statement of operations. Included in the expense for 2016 was stock compensation expense recorded for 2015 incentive bonuses paid in fully vested restricted stock units which were authorized and granted in 2016. No stock-based compensation was capitalized as part of the cost of an asset as of December 31, 2016 , 2015 , or 2014 . As of December 31, 2016 , we had $6.7 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 two years. As discussed in Note 1. Description of Business and Summary of Significant Accounting Policies , the valuation models for stock option awards require various highly judgmental assumptions. The assumption for the expected term of the options represents the estimated period of time until exercise and is based on historical experience of similar awards, including the contractual terms, vesting schedules, and expectations of future employee behavior. Expected stock price volatility is based on historical volatility of our common stock for the related expected term. The risk-free interest rate is based on the implied yield available on U.S. Treasury zero-coupon issues with a term equivalent to the expected term of the stock options. The dividend yield is estimated at zero because we do not currently anticipate paying dividends in the foreseeable future. The fair value of options granted, excluding the options related to the 2016 Exchange described below, used the following weighted average assumptions: Years ended December 31, 2016 2015 2014 Expected dividend yield — % — % — % Risk-free interest rate 1.59 % 1.47 % 1.40 % Expected term (years) 5.1 4.8 4.5 Volatility 35 % 38 % 41 % Restricted stock unit and award activity was as follows (shares are in thousands): Shares Weighted Average Grant Date Fair Value Per Share Total Grant Date Fair Value of Vested Awards (000's) Nonvested shares, December 31, 2013 490 $ 7.80 Granted 159 7.60 Vested (193 ) 8.35 $ 1,608 Forfeited/Canceled (56 ) 7.73 Nonvested shares, December 31, 2014 400 $ 7.47 Granted 296 5.44 Vested (109 ) 7.01 $ 763 Forfeited/Canceled (263 ) 7.27 Nonvested shares, December 31, 2015 324 $ 5.94 Granted 832 3.75 Vested (802 ) 3.83 $ 3,069 Forfeited/Canceled (22 ) 5.61 Nonvested shares, December 31, 2016 332 $ 5.59 At December 31, 2016 the aggregate intrinsic value of restricted stock awards was $1.6 million and the weighted average remaining contractual term was approximately 1 year . Stock option activity (shares are in thousands): Options Outstanding Weighted Average Grant Date Fair Value Number of Shares Weighted Average Exercise Price Outstanding, December 31, 2013 6,625 $ 10.21 Options granted at common stock price 2,036 7.44 $ 2.51 Options exercised (44 ) 7.26 Options cancelled (1,893 ) 14.47 Outstanding, December 31, 2014 6,724 $ 8.19 Options granted at common stock price 907 5.31 $ 1.70 Options exercised (14 ) 1.92 Options cancelled (2,100 ) 8.59 Outstanding, December 31, 2015 5,517 $ 7.58 Options granted at common stock price 1,230 4.50 $ 1.51 Options cancelled as part of stock option exchange (1,961 ) 8.11 Options granted as part of stock option exchange 1,961 4.73 $ 0.74 Options exercised (90 ) 3.69 Options cancelled (796 ) 8.81 Outstanding, December 31, 2016 5,861 $ 5.73 Exercisable, December 31, 2016 1,940 $ 7.04 Vested and expected to vest, December 31, 2016 5,550 $ 5.79 In 2016 and 2015 we granted 400,000 and 200,000 market-based stock options, respectively, which are included in the stock option tables above. As of December 31, 2016 , the weighted average remaining contractual life of the options was as follows: outstanding options 5.8 years; exercisable options 4.3 years; and vested and expected to vest options 5.7 years. As of December 31, 2016 , the aggregate intrinsic value of the options was as follows: outstanding options $1.0 million ; exercisable options $0.1 million ; and vested and expected to vest options $0.9 million . The aggregate intrinsic value of stock options exercised in 2016 was $0.1 million and was insignificant in both 2015 and 2014. Employee Stock Purchase Plan. Our Employee Stock Purchase Plan (ESPP) allows an eligible employee to purchase shares of our common stock at a price equal to 85 percent of the fair market value of the common stock at the end of the semi-annual offering periods, subject to certain limitations. Under the ESPP, 53,600 , 94,400 and 78,500 shares were purchased during the years ended December 31, 2016 , 2015 and 2014 , respectively. Retirement Savings Plan. We have a salary deferral plan (401(k) Plan) that covers substantially all employees. Eligible employees may contribute a portion of their eligible compensation to the plan up to limits stated in the plan documents, not to exceed the dollar amounts set by applicable laws. During the years ended December 31, 2016 , 2015 , and 2014 , we matched 50% of the first three percent of participating employees’ contributions, and contributed $0.3 million , $0.6 million , and $0.7 million , respectively, in matching contributions. We can terminate the matching contributions at our discretion. We have no other post-employment or post-retirement benefit plans. Stock Option Exchange. In September 2016, our shareholders approved amendments to our stock plans to allow for an option exchange program. The program, which launched on November 3, 2016, offered 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 (the "Eligible Options"), for new awards. The Company granted these new options on December 6, 2016, with an exercise price of $4.73 , the fair market price of the Company's common stock as quoted on the Nasdaq Global Select Market at the close of business on that day. Members of the Company's Board of Directors, including our CEO, were not eligible for this program. In connection with the program, options to purchase 2.0 million shares of the Company's common stock were exchanged, representing 58% of total shares of common stock underlying the Eligible Options. As a result of the exchange, an additional $1.5 million , gross of estimated forfeitures, will be recognized over approximately 2 years , or the remaining average vesting period.

Income Taxes

Income Taxes	12 Months Ended
	Dec. 31, 2016
Income Tax Disclosure [Abstract]
Income Taxes	Note 14. Income Taxes Components of income (loss) before income taxes (in thousands): Years ended December 31, 2016 2015 2014 United States operations $ (34,100 ) $ (76,450 ) $ (67,186 ) Foreign operations (1,328 ) (6,231 ) (3,349 ) Income (loss) before income taxes $ (35,428 ) $ (82,681 ) $ (70,535 ) Components of income tax expense (benefit) (in thousands): Years ended December 31, 2016 2015 2014 Current: United States federal $ 712 $ 176 $ 547 State and local 59 (44 ) 69 Foreign 221 592 901 Total current 992 724 1,517 Deferred: United States federal 3 (1,636 ) 21 State and local 1 1 (40 ) Foreign 126 77 (218 ) Total deferred 130 (1,558 ) (237 ) Total income tax expense (benefit) $ 1,122 $ (834 ) $ 1,280 Income tax expense differs from “expected” income tax expense (computed by applying the U.S. federal income tax rate of 35% ) due to the following (in thousands): Years ended December 31, 2016 2015 2014 United States federal tax expense (benefit) at statutory rate $ (12,400 ) $ (28,938 ) $ (24,687 ) State taxes, net of United States federal tax expense (benefit) (533 ) (1,240 ) (1,083 ) Change in valuation allowance 13,148 27,821 27,759 Non-deductible stock compensation 144 218 270 Impact of non-U.S. jurisdictional tax rate difference 132 648 529 Research and development tax credit (338 ) (243 ) (325 ) Increase (reversal) of unrecognized tax benefits 135 (1,269 ) (901 ) Non-U.S. withholding tax 452 141 393 Other 382 2,028 (675 ) Total income tax expense (benefit) $ 1,122 $ (834 ) $ 1,280 Net deferred tax assets are comprised of the following (in thousands): December 31, 2016 2015 Deferred tax assets: United States federal net operating loss carryforwards $ 93,985 $ 84,426 Deferred expenses 1,136 1,591 Research and development tax credit carryforwards 24,702 24,442 Alternative minimum tax credit carryforward 3,561 3,626 Net unrealized loss on investments 97 97 Accrued loss on excess office facilities 1,178 959 Stock-based compensation 4,112 11,441 State net operating loss carryforwards 11,354 10,079 Foreign net operating loss carryforwards 29,863 30,657 Deferred revenue 156 82 Equipment, software, and leasehold improvements 4,636 4,263 Intangibles 7 12 Net unrealized gains and basis differences on investments 1,874 — Other 1,624 5,150 Gross deferred tax assets 178,285 176,825 Less valuation allowance 176,274 173,872 Gross deferred tax assets, net of valuation allowance $ 2,011 $ 2,953 Deferred tax liabilities: Other intangible assets $ (50 ) $ (404 ) Net unrealized gains and basis differences on investments — (78 ) Other (794 ) (218 ) Prepaid expenses (438 ) (1,384 ) Gross deferred tax liabilities (1,282 ) (2,084 ) Net deferred tax assets (liabilities) $ 729 $ 869 Income tax receivables were insignificant and $0.1 million at December 31, 2016 and 2015 , respectively. In 2016 , we continued to record a valuation allowance on the deferred tax assets that we believe are not more likely than not to be realized. The net change in valuation allowance was a $2.4 million increase and a $24.4 million increase during the years ended December 31, 2016 and 2015 , respectively. We maintain a valuation allowance of $176.3 million for our deferred tax assets due to uncertainty regarding their realization as of December 31, 2016 . The net increase in the valuation allowance since December 31, 2015 of $2.4 million was the result of an increase in current year deferred tax assets for which the Company maintains a valuation allowance. RealNetworks' U.S. federal net operating loss carryforwards totaled $268.5 million at and $241.2 million at December 31, 2016 and 2015 , respectively. The increase is mainly due to the current year U.S. taxable loss. The remaining net operating loss carryforwards as of December 31, 2016 are from prior U.S. taxable losses and from acquired subsidiaries that are limited under Internal Revenue Code Section 382. These net operating loss carryforwards expire between 2024 and 2036. RealNetworks' alternative minimum tax credit carryforward remained at $3.6 million from December 31, 2015 to December 31, 2016 . The alternative minimum tax credit can be carried forward indefinitely. RealNetworks' U.S. federal research and development tax credit carryforward totaled $24.7 million and $24.4 million at December 31, 2016 and 2015 , respectively. The research and development credit carryforwards expire between 2020 and 2036. As of December 31, 2016 and 2015 , we had $0.5 million and $0.3 million of unrecognized tax benefits, respectively. The increase in unrecognized tax benefits is due to federal research and development tax credit carryforward risks. As of December 31, 2016, there are no unrecognized tax benefits remaining that would affect our effective tax rate if recognized, as the offset would increase the valuation allowance. We do not anticipate that the total amount of unrecognized tax benefits will significantly change within the next twelve months. We recognize interest and penalties related to unrecognized tax benefits within the provision for income taxes. As of December 31, 2016 , and 2015 we have no accrued interest or penalties related to uncertain tax positions. Reconciliation of the beginning and ending balances of the total amounts of unrecognized tax benefits (in thousands): Years ended December 31, 2016 2015 2014 Balance, beginning of year $ 320 $ 3,541 $ 4,505 Increases related to prior year tax positions 38 — — Decreases related to prior year tax positions — (33 ) (196 ) Settlements with taxing authorities — (3,285 ) — Increases related to current year tax positions 135 97 130 Expiration of the statute of limitations — — (898 ) Balance, end of year $ 493 $ 320 $ 3,541

Earnings (Loss) Per Share

Earnings (Loss) Per Share	12 Months Ended
	Dec. 31, 2016
Earnings Per Share [Abstract]
Earnings Per Share	Note 15. Earnings (Loss) Per Share Basic and diluted net income (loss) per share (EPS) (in thousands, except per share data): Years ended December 31, 2016 2015 2014 Net income (loss) $ (36,550 ) $ (81,847 ) $ (71,815 ) Weighted average common shares outstanding used to compute basic EPS 36,781 36,165 35,947 Dilutive effect of stock based awards — — — Weighted average common shares outstanding used to compute diluted EPS 36,781 36,165 35,947 Basic EPS $ (0.99 ) $ (2.26 ) $ (2.00 ) Diluted EPS $ (0.99 ) $ (2.26 ) $ (2.00 ) Approximately 4.8 million , 5.7 million , and 6.3 million shares of potentially issuable shares from stock awards were excluded from the calculation of diluted EPS for the years ended December 31, 2016 , 2015 , and 2014 , respectively, because of their antidilutive effect.

Commitments and Contingencies

Commitments and Contingencies	12 Months Ended
	Dec. 31, 2016
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	Note 16. Commitments and Contingencies Commitments. We have commitments for future payments related to office facilities leases. We lease office facilities under various operating leases expiring through 2024. Future minimum payments as of December 31, 2016 are as follows (in thousands): Office Leases 2017 $ 5,302 2018 4,499 2019 4,765 2020 4,477 2021 4,325 Thereafter 10,528 Total minimum payments (a) $ 33,896 (a) Minimum payments have not been reduced by minimum sublease rentals of $12.1 million due in the future under noncancelable subleases. Of the total office lease future minimum payments, $3.2 million is recorded in accrued lease exit and related charges at December 31, 2016 . Rent expense during the years ended December 31, 2016 , 2015 , and 2014 , was $4.2 million , $5.8 million , and $6.8 million , respectively. 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	12 Months Ended
	Dec. 31, 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	12 Months Ended
	Dec. 31, 2016
Segment Reporting [Abstract]
Segment Information	Note 18. Segment Information In the first quarter of 2016, we reorganized the management of our business 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 and our RealTimes ® product that is primarily sold through mobile carriers; and (3) Games, which includes all our games-related businesses, including sales of mobile games, sales of games licenses, online games subscription services, advertising on games sites and social network sites, and microtransactions from online and social games.. We allocate to our reportable segments certain corporate expenses which are directly attributable to supporting the businesses, including but 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 are restructuring, lease exit and related charges, as well as stock compensation charges, and the 2014 extinguishment of the liability associated with our historical musical business. 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 business. RealNetworks reports the 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 . The historical financial information presented has been recast to reflect the new segments and the new corporate expense presentation. Segment results for the years ended December 31, 2016 , 2015 and 2014 were as follows (in thousands): Consumer Media 2016 2015 2014 Revenue $ 25,051 $ 28,613 $ 39,121 Cost of revenue 7,074 13,257 13,466 Gross profit 17,977 15,356 25,655 Operating expenses 18,399 26,526 41,950 Operating income (loss) $ (422 ) $ (11,170 ) $ (16,295 ) Mobile Services 2016 2015 2014 Revenue $ 70,278 $ 65,935 $ 79,981 Cost of revenue 50,026 47,834 52,193 Gross profit 20,252 18,101 27,788 Operating expenses 34,439 44,311 53,527 Operating income (loss) $ (14,187 ) $ (26,210 ) $ (25,739 ) Games 2016 2015 2014 Revenue $ 25,139 $ 30,748 $ 37,110 Cost of revenue 7,919 9,291 11,074 Gross profit 17,220 21,457 26,036 Operating expenses 19,644 29,086 37,170 Operating income (loss) $ (2,424 ) $ (7,629 ) $ (11,134 ) Corporate 2016 2015 2014 Cost of revenue $ (51 ) $ (85 ) $ (352 ) Extinguishment of liability — — (10,580 ) Operating expenses 20,192 24,263 26,917 Operating income (loss) $ (20,141 ) $ (24,178 ) $ (15,985 ) 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): Years ended December 31, 2016 2015 2014 United States $ 41,505 $ 46,893 $ 61,660 Europe 13,700 15,166 26,575 Republic of Korea 43,236 37,832 39,852 Rest of the World 22,027 25,405 28,125 Total $ 120,468 $ 125,296 $ 156,212 Long-lived assets (consists of equipment, software, leasehold improvements, other intangible assets, and goodwill) by geographic region (in thousands): December 31, 2016 2015 2013 United States $ 13,052 $ 16,821 $ 33,421 Europe 3,920 4,898 6,696 Republic of Korea 168 282 547 Rest of the World 1,909 2,015 3,048 Total long-lived assets $ 19,049 $ 24,016 $ 43,712

Related Party Transactions

Related Party Transactions	12 Months Ended
	Dec. 31, 2016
Related Party Transactions [Abstract]
Related Party Transactions	Note 19. Related Party Transactions See Note 4. Rhapsody Joint Venture and Note 5. Fair Value Measurements for details on transactions involving Rhapsody.

Quarterly Information (Unaudite

Quarterly Information (Unaudited)	12 Months Ended
	Dec. 31, 2016
Quarterly Financial Information Disclosure [Abstract]
Quarterly Information (Unaudited)	Note 20. Quarterly Information (Unaudited) The following table summarizes the unaudited statement of operations for each quarter of 2016 and 2015 (in thousands, except per share data): Total Dec. 31 Sept. 30 (2) June 30 Mar. 31 2016 Net revenue $ 120,468 $ 31,453 $ 31,051 $ 29,734 $ 28,230 Gross profit 55,500 14,095 14,311 14,036 13,058 Operating (loss) income (37,174 ) (6,369 ) (8,389 ) (7,637 ) (14,779 ) Net income (loss) (36,550 ) (9,976 ) (3,056 ) (8,347 ) (15,171 ) Basic net income (loss) per share (1) (0.99 ) (0.27 ) (0.08 ) (0.23 ) (0.42 ) Diluted net income (loss) per share (1) (0.99 ) (0.27 ) (0.08 ) (0.23 ) (0.42 ) 2015 Net revenue $ 125,296 $ 29,922 $ 30,823 $ 33,954 $ 30,597 Gross profit 54,999 14,094 12,733 14,122 14,050 Operating (loss) income (69,187 ) (7,506 ) (21,962 ) (20,707 ) (19,012 ) Net income (loss) (81,847 ) (8,413 ) (21,184 ) (27,781 ) (24,469 ) Basic net income (loss) per share (1) (2.26 ) (0.23 ) (0.59 ) (0.77 ) (0.68 ) Diluted net income (loss) per share (1) (2.26 ) (0.23 ) (0.59 ) (0.77 ) (0.68 ) (1) The sum of the quarterly net income per share amounts will not necessarily equal net income per share for the year due to the use of weighted average quarterly shares and the effects of rounding. (2) Included in third quarter 2016 net income was a $4.0 million pretax gain related to the 2015 sale of Slingo, described in Note 3. Acquisitions and Disposals, and a $2.0 million pretax gain related to the sale of an intangible asset, described in Note 7. Other Intangible Assets.

Description of Business and S28

Description of Business and Summary of Significant Accounting Policies (Policies)	12 Months Ended
	Dec. 31, 2016
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 Annual Report on Form 10-K for the year ended December 31, 2016 (10-K), RealNetworks, Inc. and subsidiaries is referred to as “RealNetworks”, the “Company”, “we”, “us”, or “our”.
Basis of Presentation	Basis of Presentation. The consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries. Intercompany balances and transactions have been eliminated in consolidation. The consolidated financial statements reflect all 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 year ended December 31, 2016 are not necessarily indicative of the results that may be expected for any subsequent periods.
Use of Estimates	Use of Estimates. The preparation of financial statements in conformity with accounting principles generally accepted in the U.S. (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.
Cash and, Cash Equivalents, and Short-Term Investments, and Available-for-Sale Securities	Cash and Cash Equivalents, Short-Term Investments, and Available-for-Sale Securities. We consider all short-term investments with a remaining contractual maturity at date of purchase of three months or less to be cash equivalents. We have classified as available-for-sale all marketable debt and equity securities for which there is determinable fair market value and there are no restrictions on our ability to sell. Available-for-sale securities are carried at fair value with unrealized gains and losses reported in accumulated other comprehensive income (loss) (AOCI) in shareholders' equity, net of any applicable income taxes. 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. Realized gains and losses and any declines in value judged to be other-than-temporary on available-for-sale securities are included in other income (expense), net. Realized and unrealized gains and losses on available-for-sale securities are determined using the specific identification method.
Trade Accounts Receivable	Trade Accounts Receivable. Trade accounts receivable consist of amounts due from customers and do not bear interest. The allowance for doubtful accounts and sales returns is our estimate of the amount of probable credit losses and returns in our existing accounts receivable. We determine the allowances based on analysis of historical bad debts, customer concentrations, customer credit-worthiness, return history and current economic trends. We review the allowances for doubtful accounts and sales returns quarterly. Past due balances over 90 days and specified other balances are reviewed individually for collectability. All other balances are reviewed on an aggregate basis. Account balances are written off against the allowance after all reasonable means of collection have been exhausted and the potential for recovery is considered remote. We do not have any off-balance sheet credit exposure related to our customers.
Concentration of Credit Risk	Concentration of Credit Risk. Financial instruments that potentially expose the Company to concentrations of credit risk consist primarily of cash and cash equivalents, short-term investments, and accounts receivable. Short-term investments consist of U.S. government and government agency securities, corporate notes and bonds, and municipal securities. We derive a portion of our revenue from a large number of individual consumers spread globally. We also derive revenue from several large customers. If the financial condition or results of operations of any one of the large customers deteriorates substantially, our operating results could be adversely affected. To reduce credit risk, management performs ongoing credit evaluations of the financial condition of significant customers. We do not generally require collateral and we maintain an allowance for estimated credit losses on customer accounts when considered necessary.
Depreciation and Amortization	Depreciation and Amortization. Depreciation of equipment and software, as well as amortization of leasehold improvements is computed using the straight-line method over the lesser of the estimated useful lives of the assets or the related lease term. The useful life of equipment and software is generally three to five years.
Equity Method Investments	Equity Method Investment. We use the equity method in circumstances where we have the ability to exert significant influence, but not control, over an investee or joint venture. We initially record our investment based on a fair value analysis of the investment. We record our percentage interest in the investee's recorded income or loss and changes in the investee's capital under this method, which will increase or decrease the reported value of our investment. See Note 4, Rhapsody Joint Venture for additional information. We evaluate impairment of an investment accounted for under the equity method if events and circumstances warrant. An impairment charge would be recorded if a decline in the fair value of an equity investment below its carrying amount were determined to be other than temporary. In determining if a decline is other than temporary, we consider factors such as the length of time and extent to which the fair value of the investment has been less than the carrying amount of the investee or joint venture, the near-term and longer-term operating and financial prospects of the investee or joint venture and our intent and ability to hold the investment for a period of time sufficient to allow for any anticipated recovery.
Deferred Costs	Deferred Costs. We defer certain costs on projects for service revenues and system sales. Deferred costs consist primarily of direct and incremental costs to customize and install systems, as defined in individual customer contracts, including costs to acquire hardware and software from third parties and payroll and related costs for employees and other third parties. Deferred costs are capitalized during the implementation period. We recognize such costs as a component of cost of revenue, the timing of which is dependent upon the revenue recognition policy by contract. At each balance sheet date, we review deferred costs to ensure they are ultimately recoverable. Any anticipated losses on uncompleted contracts are recognized when evidence indicates the estimated total cost of a contract exceeds its estimated total revenue or if actual deferred costs exceed estimated contractual revenue. Assessing the recoverability of deferred costs is based on significant assumptions and estimates, including future revenue and cost of sales. Significant or sustained decreases in revenue or increases in cost of sales in future periods could result in impairments of deferred project costs and prepaid royalty advances. We cannot accurately predict the amount and timing of any such impairments. Should deferred project costs or prepaid royalty advances become impaired, we would record the appropriate charge, which could have a material adverse effect on our financial condition and results of operations. In 2014 we impaired $0.7 million in deferred project costs and the charge was included in cost of revenue in the accompanying consolidated statements of operations and comprehensive income (loss). No such charges were incurred in 2016 or 2015.
Other Definite-Lived Intangible Assets	Definite-Lived Tangible and Intangible Assets. Definite-lived tangible assets include equipment, software and leasehold improvements and are carried at cost less accumulated depreciation and amortization. Definite-lived intangible assets consist primarily of the fair value of customer agreements and contracts, and developed technology acquired in business combinations and are amortized over their estimated useful lives. We review these assets for impairment whenever events or changes in circumstances indicate the carrying amount of such assets may not be recoverable. If the carrying amount of an asset group is not recoverable, an impairment loss is recognized if the carrying amount of the asset group exceeds its estimated fair value, which is generally determined as the present value of estimated future cash flows to a market participant. Our impairment analysis is based on significant assumptions of future results, including operating and cash flow projections. Significant or sustained declines in future revenue or cash flows, or adverse changes in our business climate, among other factors, could result in the need to record an impairment charge in future periods.
Goodwill	Goodwill. We test goodwill for impairment on an annual basis, in our fourth quarter, or more frequently if circumstances indicate reporting unit carrying values may exceed their fair values. Circumstances that may indicate a reporting unit's carrying value exceeds its fair value include, but are not limited to: poor economic performance relative to historical or projected future operating results; significant negative industry, economic or company specific trends; changes in the manner of our use of the assets or the plans for our business; and loss of key personnel. When evaluating goodwill for impairment, based upon our annual test or due to changes in circumstances described above, we first perform a qualitative assessment to determine if the fair value of a reporting unit is more likely than not less than the reporting unit's carrying amount including goodwill. If this assessment indicates it is more likely than not, we then compare the carrying value of the reporting unit to the estimated fair value of the reporting unit. If the carrying value of the reporting unit exceeds the estimated fair value, we then calculate the implied estimated fair value of goodwill for the reporting unit and compare it to the carrying amount of goodwill for the reporting unit. If the carrying amount of goodwill exceeds the implied estimated fair value, an impairment charge to current operations is recorded to reduce the carrying value to implied estimated value. Significant judgment is required in determining the reporting units and assessing fair value of the reporting units.
Fair Value	Fair Value. Fair value is the price that would be received from selling an asset or paid in transfering a liability in an orderly transaction between market participants at the measurement date. Our fair value measurements consider the principal or most advantageous market in which we would transact and the market-based risk measurements or assumptions that market participants would use in pricing the asset or liability, such as inherent risk, transfer restrictions and credit risk. Fair values are determined based on three levels of inputs: • Level 1: Quoted prices in active markets for identical assets or liabilities • Level 2: Directly or indirectly observed inputs for the asset or liability, including quoted prices for similar assets or liabilities in active markets and quoted prices for identical or similar assets or liabilities in markets that are not active • Level 3: Significant unobservable inputs that reflect our own estimates of assumptions that market participants would use
Research and Development	Research and Development. Costs incurred in research and development are expensed as incurred. Software development costs are capitalized when a product’s technological feasibility has been established through the date the product is available for general release to customers. Other than internal use software, we have not capitalized any software development costs, as technological feasibility is generally not established until a working model is completed, at which time substantially all development is complete.
Revenue Recognition	Revenue Recognition. We recognize revenue when persuasive evidence of an arrangement exists, delivery has occurred, the sales price is fixed or determinable, and collection is probable. Physical products are considered delivered to the customer once they have been shipped and title and risk of loss have been transferred. For online sales, the products or services are considered delivered at the time the products or services are made available, digitally, to the end user. We recognize revenue on a gross or net basis. In most arrangements, we contract directly with end user customers, and are the primary obligor. In such arrangements, we recognize revenue on a gross basis. In some cases, we utilize third-party distributors who are the primary obligor to sell products or services directly to end user customers. In such instances, we recognize revenue on a net basis. In our direct to consumer operations, we derive revenue through (1) subscriptions sold by our Games segment and subscriptions of SuperPass within our Consumer Media segment, (2) sales of content downloads, software and licenses offered by our Consumer Media, Mobile Services, and Games segments and (3) the sale of advertising and the distribution of third-party products on our websites and in our games. Consumer subscription products are paid in advance, typically for monthly, quarterly or annual duration. Subscription revenue is recognized ratably over the related subscription time period. Revenue from sales of content downloads, software and licenses is recognized at the time the product is made available, digitally, to the end user. Revenue generated from advertising on our websites and from advertising and the distribution of third-party products included in our products is recognized as revenue at the time of delivery. We also generate revenue through business-to-business channels by providing services within our Mobile Services segment enabling mobile carriers to deliver audio and video content to their customers and by selling software licenses and products and related support and other services. Revenue generated from services provided to mobile carriers that enable the delivery of audio and video content to their customers is recognized as the services are provided. Setup fees to build these services are recognized ratably upon launch of the service over the remaining expected term of the service. Non-software revenue arrangements containing multiple elements are divided into separate units of accounting, after being evaluated for specific criteria. If the criteria for separation are met, revenue is allocated to the individual units using the relative fair value method. If the criteria are not met, the elements are treated as one unit of accounting and revenue recognition is delayed until all elements have been delivered. In the case of revenue arrangements containing software, elements are divided into separate units of accounting only when vendor-specific objective evidence has been established. In cases where vendor-specific objective evidence has not been established, undelivered elements are combined into one unit of accounting and are not recognized in revenue until all elements have been delivered.
Advertising Expenses	Advertising Expenses. We expense the cost of advertising and promoting our products as incurred.
Foreign Currency	Foreign Currency. The functional currency of the Company’s foreign subsidiaries is the currency of the country in which the subsidiary operates. Assets and liabilities of foreign operations are translated into U.S. dollars using rates of exchange in effect at the end of the reporting period. The net gain or loss resulting from translation is shown as translation adjustment and included in AOCI in shareholders’ equity. Income and expense accounts are translated into U.S. dollars using average rates of exchange. Gains and losses from foreign currency transactions are included in the consolidated statements of operations.
Derivative Financial Instruments	Derivative Financial Instruments. We conduct business internationally in several currencies and thus we are exposed to adverse movements in foreign currency exchange rates. A portion of these risks may be managed through the use of financial derivatives, but fluctuations in foreign exchange rates could impact our results of operations and financial position. Where appropriate, we manage foreign currency risk for certain material short-term intercompany balances through the use of foreign currency forward contracts. These contracts require us to exchange currencies at rates agreed upon at the contract’s inception. Because the impact of movements in currency exchange rates on forward contracts offsets the related impact on the short-term intercompany balances, these financial instruments help alleviate the risk that might otherwise result from certain changes in currency exchange rates. We do not designate foreign exchange forward contracts related to short-term intercompany accounts as hedges and, accordingly, we adjust these instruments to fair value through our results of operations. However, we may periodically hedge a portion of our foreign exchange exposures associated with material firmly committed transactions and long-term investments. All derivatives, whether designated in hedging relationships or not, are recorded on the balance sheet at fair value. If the derivative is designated a hedge, then depending on the nature of the hedge, changes in fair value will either be recorded immediately in results of operations, or be recognized in AOCI until the hedged item is recognized in results of operations.
Accounting for Taxes Collected from Customers	Accounting for Taxes Collected from Customers. Our revenues are reported net of sales and other transaction taxes that are collected from customers and remitted to taxing authorities.
Income Taxes	Income Taxes. We compute income taxes using the asset and liability method, under which deferred income taxes are provided for temporary differences between financial reporting basis and tax basis of our assets and liabilities and operating loss and tax credit carryforwards. We record a valuation allowance when it is more likely than not that some portion or all of the deferred tax assets will not be realized. The ultimate realization of the deferred tax assets depends on the ability to generate sufficient taxable income of the appropriate character in the appropriate taxing jurisdictions. Adjustments to the valuation allowance could be required in the future if we estimate that the amount of deferred tax assets to be realized is more or less than the net amount we have recorded. Any increase or decrease in the valuation allowance could have the effect of increasing or decreasing the income tax provision in the statement of operations. Deferred tax assets and liabilities and operating loss and tax credit carryforwards are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences and operating loss and tax credit carryforwards are expected to be recovered or settled. 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. We recognize the tax benefit from an uncertain tax position only if it is more likely than not that the tax position will be sustained on examination by the taxing authorities, based on the technical merits of the position. The tax benefits recognized in the financial statements from such a position are measured based on the largest benefit that has a greater than 50% likelihood of being realized upon ultimate settlement. We recognize accrued interest and penalties related to uncertain tax positions as a component of income tax expense.
Stock-Based Compensation	Stock-Based Compensation. Stock-based compensation cost is measured at the grant date based on the fair value of the award and is recognized as expense over the requisite service period, which is the vesting period. We use the Black-Scholes option-pricing model or other appropriate valuation models such as Monte Carlo simulation to determine the fair value of stock-based option awards. The fair value of restricted stock awards is based on the closing market price of our common stock on the award date. Generally, we recognize the compensation cost for awards on a straight-line basis for the entire award, over the applicable vesting period. For performance-based awards, expense is recognized when it is probable the performance goal will be achieved, however if the likelihood becomes improbable, that expense is reversed. For market-based stock options, fair value is measured at the grant date using the Monte Carlo simulation model and we recognize compensation cost for these awards on a straight-line basis over the requisite service period for each separately vesting portion of the awards. For our employee stock purchase plan, compensation expense is measured based on the discount the employee is entitled to upon purchase. The valuation models for stock-based option awards require various highly judgmental assumptions including volatility in our common stock price and expected option life. If any of the assumptions used in the valuation models change significantly, stock-based compensation expense for new awards may differ materially in the future from the amounts recorded in the consolidated statements of operations. For all awards, we also estimate forfeitures at the time of grant and revise those estimates in subsequent periods if actual forfeitures differ from those estimates.
Net Income Per Share	Net Income 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.
Recent Accounting Pronouncements	In May 2014, the Financial Accounting Standards Board (FASB) issued new revenue recognition guidance, which was subsequently updated and amended in 2015 and 2016. The guidance requires 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. While we are evaluating all of our revenue streams, we currently expect the greatest impact in certain areas where we will be required to estimate usage which drives the underlying revenue. Under current guidance, we do not recognize revenues until we achieve fixed and determinable status, which would be at a later date. However, our analysis is not complete and we may identify other areas of additional impact. The guidance permits two methods of adoption: the full retrospective method where the standard would be applied to each prior reporting period presented and the cumulative effect of applying the standard would be recognized at the earliest period shown, or the modified retrospective method, in which case the cumulative effect of applying the standard would be recognized at the date of initial application. While we are currently evaluating the method of adoption and the quantitative impact of the new revenue standard, as amended, we currently expect to adopt using the modified retrospective method in the first quarter of fiscal year 2018. 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, including interim periods within 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 adopted this guidance on January 1, 2017. The adoption of this guidance will not have any impact 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.

Rhapsody Joint Venture (Tables)

Rhapsody Joint Venture (Tables)	12 Months Ended
	Dec. 31, 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): Year ended December 31, Year ended December 31, Year ended December 31, Net revenue $ 208,085 $ 201,987 $ 173,484 Gross profit 38,407 32,761 32,145 Net loss (14,913 ) (35,479 ) (21,336 ) As of December 31, 2016 As of December 31, 2015 Current assets $ 55,831 $ 53,274 Non-current assets 18,273 20,520 Current liabilities 104,906 92,794 Non-current liabilities 20,238 20,295

Fair Value Measurements (Tables

Fair Value Measurements (Tables)	12 Months Ended
	Dec. 31, 2016
Fair Value Disclosures [Abstract]
Financial Assets Measured at Fair Value on a Recurring Basis	The following tables present information about our financial assets that have been measured at fair value on a recurring basis as of December 31, 2016 and 2015 , and indicates the fair value hierarchy of the valuation inputs utilized to determine fair value (in thousands). Fair Value Measurements as of Amortized Cost as of December 31, 2016 December 31, 2016 Level 1 Level 2 Level 3 Total Cash and cash equivalents: Cash $ 32,585 $ — $ — $ 32,585 $ 32,585 Money market funds 136 — — 136 136 Corporate notes and bonds — 1,000 — 1,000 1,000 Total cash and cash equivalents 32,721 1,000 — 33,721 33,721 Short-term investments: Corporate notes and bonds — 43,331 — 43,331 43,343 Total short-term investments — 43,331 — 43,331 43,343 Restricted cash equivalents and investments — 2,700 — 2,700 2,700 Warrant issued by Rhapsody (included in Other assets) — — 773 773 — Total $ 32,721 $ 47,031 $ 773 $ 80,525 $ 79,764 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 investments 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
Contractual Maturities of Short-term Investments	Contractual maturities of short-term investments as of December 31, 2016 are as follows (in thousands): Estimated Fair Value Within one year $ 41,135 Between one year and five years 2,196 Total short-term investments $ 43,331

Allowance for Doubtful Accoun31

Allowance for Doubtful Accounts Receivable and Sales Returns (Tables)	12 Months Ended
	Dec. 31, 2016
Receivables [Abstract]
Activity in Allowance for Doubtful Accounts Receivable and Sales Returns	Activity in the allowance for doubtful accounts receivable (in thousands): Years ended December 31, 2016 2015 2014 Balance, beginning of year $ 765 $ 1,288 $ 966 Addition (reduction) to allowance 36 (355 ) 433 Amounts written off (152 ) (77 ) — Effects of foreign currency translation (16 ) (91 ) (111 ) Balance, end of year $ 633 $ 765 $ 1,288 Activity in the allowance for sales returns (in thousands): Years ended December 31, 2016 2015 2014 Balance, beginning of year $ 158 $ 354 $ 569 Addition (reduction) to allowance 15 (186 ) (209 ) Amounts written off (3 ) (9 ) (6 ) Effects of foreign currency translation (1 ) (1 ) — Balance, end of year $ 169 $ 158 $ 354 Total, Allowance for Doubtful Accounts Receivable and Sales Returns $ 802 $ 923 $ 1,642

Other Intangible Assets (Tables

Other Intangible Assets (Tables)	12 Months Ended
	Dec. 31, 2016
Goodwill and Intangible Assets Disclosure [Abstract]
Other Intangible Assets	Other intangible assets (in thousands): As of December 31, 2016 2015 Gross Amount Accumulated Amortization Net Gross Amount Accumulated Amortization Net Amortizing intangible assets: Customer relationships $ 29,308 $ 28,781 $ 527 $ 30,182 $ 29,236 $ 946 Developed technology 23,574 23,263 311 24,047 23,244 803 Patents, trademarks and tradenames 3,530 3,430 100 3,717 3,398 319 Service contracts 5,205 5,205 — 5,269 5,201 68 Total $ 61,617 $ 60,679 $ 938 $ 63,215 $ 61,079 $ 2,136
Schedule of Expected Amortization Expense	Estimated future amortization of other intangible assets (in thousands): 2017 $ 642 2018 296 Total $ 938 No impairments of other intangible assets were recognized in 2016 , 2015 or 2014 .

Goodwill (Tables)

Goodwill (Tables)	12 Months Ended
	Dec. 31, 2016
Goodwill and Intangible Assets Disclosure [Abstract]
Schedule of Goodwill	Changes in goodwill (in thousands): December 31, 2016 2015 Balance, beginning of year Goodwill $ 323,733 $ 328,008 Accumulated impairment losses (310,653 ) (310,653 ) 13,080 17,355 Increases (decreases) due to current year acquisitions (disposals) — (3,620 ) Effects of foreign currency translation (223 ) (655 ) (223 ) (4,275 ) Balance, end of year Goodwill 323,510 323,733 Accumulated impairment losses (310,653 ) (310,653 ) $ 12,857 $ 13,080 Goodwill by segment (in thousands): December 31, 2016 2015 Consumer Media $ 580 $ 580 Mobile Services 1,979 2,202 Games 10,298 10,298 Total goodwill $ 12,857 $ 13,080

Accrued and Other Current Lia34

Accrued and Other Current Liabilities (Tables)	12 Months Ended
	Dec. 31, 2016
Payables and Accruals [Abstract]
Accrued and Other Liabilities	Accrued and other current liabilities (in thousands): December 31, 2016 December 31, 2015 Royalties and other fulfillment costs $ 2,629 $ 3,094 Employee compensation, commissions and benefits 5,136 5,958 Sales, VAT and other taxes payable 3,258 2,976 Other 4,402 5,292 Total accrued and other current liabilities $ 15,425 $ 17,320

Restructuring Charges (Tables)

Restructuring Charges (Tables)	12 Months Ended
	Dec. 31, 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 year ended December 31, 2016 $ 1,489 Costs incurred and charged to expense for the year ended December 31, 2015 $ 5,279 Costs incurred and charged to expense for the year ended December 31, 2014 $ 4,992
Schedule of Restructuring Reserve by Type of Cost	Changes to the accrued restructuring liability (which is included in Accrued and other current liabilities) for 2016 , 2015 and 2014 , (in thousands): Employee Separation Costs Accrued liability as of December 31, 2013 $ 756 Costs incurred and charged to expense for the year ended December 31, 2014 4,992 Cash payments (5,299 ) Accrued liability as of December 31, 2014 449 Costs incurred and charged to expense for the year ended December 31, 2015 5,279 Cash payments (4,324 ) Accrued liability as of December 31, 2015 1,404 Costs incurred and charged to expense for the period to date in 2016 1,489 Cash payments (2,684 ) Accrued liability as of December 31, 2016 $ 209

Lease Exit and Related Charges

Lease Exit and Related Charges (Tables)	12 Months Ended
	Dec. 31, 2016
Disclosure Changes To Accrued Loss On Excess Office Facilities [Abstract]
Schedule Of Accrued Loss On Excess Office Facilities	Changes to the accrued loss on excess office facilities (in thousands): Years Ended December 31, 2016 2015 2014 Accrued loss, beginning of year $ 2,595 $ 234 $ 254 Additions and adjustments to the lease loss accrual, including sublease income estimate revision, and related asset write-downs 2,428 2,981 668 Less amounts paid, net of sublease income (1,837 ) (620 ) (688 ) Accrued loss, end of year 3,186 2,595 234 Less current portion (included in Accrued and other current liabilities) (1,024 ) (822 ) (234 ) Accrued loss, non-current portion (included in Other long term liabilities) $ 2,162 $ 1,773 $ —

Shareholders' Equity (Tables)

Shareholders' Equity (Tables)	12 Months Ended
	Dec. 31, 2016
Equity [Abstract]
Schedule of Accumulated Other Comprehensive Income (Loss)	Changes in components of accumulated other comprehensive income (loss) (in thousands): Years Ended December 31, 2016 2015 2014 Investments Accumulated other comprehensive income (loss), beginning of period $ 1,297 $ 2,252 $ 6,397 Unrealized gains (losses), net of tax effects of $10, $0, and $0 1,647 (562 ) (1,774 ) Reclassification adjustments for losses (gains) included in other income (expense), net of tax effects of $0, $0, and $4 (2,950 ) (393 ) (2,371 ) Net current period other comprehensive income (1,303 ) (955 ) (4,145 ) Accumulated other comprehensive income (loss) balance, end of period $ (6 ) $ 1,297 $ 2,252 Foreign currency translation Accumulated other comprehensive income (loss), beginning of period $ (60,777 ) $ (57,504 ) $ (54,092 ) Translation adjustments (1,134 ) (3,009 ) (3,364 ) Reclassification adjustments for losses (gains) included in other income (expense) 272 (264 ) (48 ) Net current period other comprehensive income (862 ) (3,273 ) (3,412 ) Accumulated other comprehensive loss balance, end of period $ (61,639 ) $ (60,777 ) $ (57,504 ) Total accumulated other comprehensive income (loss), end of period $ (61,645 ) $ (59,480 ) $ (55,252 )

Employee Stock and Benefit Pl38

Employee Stock and Benefit Plans (Tables)	12 Months Ended
	Dec. 31, 2016
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Schedule of Total Stock-based Compensation Expense	Stock-based compensation expense recognized in our consolidated statements of operations includes amounts related to stock options, restricted stock, and employee stock purchase plans and was as follows (in thousands): Years Ended December 31, 2016 2015 2014 Total stock-based compensation expense $ 5,424 $ 4,698 $ 5,204
Weighted-Average Assumptions Used to Determine Fair Value of Options Granted	The fair value of options granted, excluding the options related to the 2016 Exchange described below, used the following weighted average assumptions: Years ended December 31, 2016 2015 2014 Expected dividend yield — % — % — % Risk-free interest rate 1.59 % 1.47 % 1.40 % Expected term (years) 5.1 4.8 4.5 Volatility 35 % 38 % 41 %
Schedule of Nonvested Restricted Stock Units Activity	Restricted stock unit and award activity was as follows (shares are in thousands): Shares Weighted Average Grant Date Fair Value Per Share Total Grant Date Fair Value of Vested Awards (000's) Nonvested shares, December 31, 2013 490 $ 7.80 Granted 159 7.60 Vested (193 ) 8.35 $ 1,608 Forfeited/Canceled (56 ) 7.73 Nonvested shares, December 31, 2014 400 $ 7.47 Granted 296 5.44 Vested (109 ) 7.01 $ 763 Forfeited/Canceled (263 ) 7.27 Nonvested shares, December 31, 2015 324 $ 5.94 Granted 832 3.75 Vested (802 ) 3.83 $ 3,069 Forfeited/Canceled (22 ) 5.61 Nonvested shares, December 31, 2016 332 $ 5.59
Schedule of Stock Options and Restricted Stock Units Activity	Stock option activity (shares are in thousands): Options Outstanding Weighted Average Grant Date Fair Value Number of Shares Weighted Average Exercise Price Outstanding, December 31, 2013 6,625 $ 10.21 Options granted at common stock price 2,036 7.44 $ 2.51 Options exercised (44 ) 7.26 Options cancelled (1,893 ) 14.47 Outstanding, December 31, 2014 6,724 $ 8.19 Options granted at common stock price 907 5.31 $ 1.70 Options exercised (14 ) 1.92 Options cancelled (2,100 ) 8.59 Outstanding, December 31, 2015 5,517 $ 7.58 Options granted at common stock price 1,230 4.50 $ 1.51 Options cancelled as part of stock option exchange (1,961 ) 8.11 Options granted as part of stock option exchange 1,961 4.73 $ 0.74 Options exercised (90 ) 3.69 Options cancelled (796 ) 8.81 Outstanding, December 31, 2016 5,861 $ 5.73 Exercisable, December 31, 2016 1,940 $ 7.04 Vested and expected to vest, December 31, 2016 5,550 $ 5.79

Income Taxes (Tables)

Income Taxes (Tables)	12 Months Ended
	Dec. 31, 2016
Income Tax Disclosure [Abstract]
Schedule of Components of Income (Loss) Before Income Taxes	Components of income (loss) before income taxes (in thousands): Years ended December 31, 2016 2015 2014 United States operations $ (34,100 ) $ (76,450 ) $ (67,186 ) Foreign operations (1,328 ) (6,231 ) (3,349 ) Income (loss) before income taxes $ (35,428 ) $ (82,681 ) $ (70,535 )
Schedule of Components of Income Tax Expense (Benefit)	Components of income tax expense (benefit) (in thousands): Years ended December 31, 2016 2015 2014 Current: United States federal $ 712 $ 176 $ 547 State and local 59 (44 ) 69 Foreign 221 592 901 Total current 992 724 1,517 Deferred: United States federal 3 (1,636 ) 21 State and local 1 1 (40 ) Foreign 126 77 (218 ) Total deferred 130 (1,558 ) (237 ) Total income tax expense (benefit) $ 1,122 $ (834 ) $ 1,280
Schedule of Effective Income Tax Rate Reconciliation	Income tax expense differs from “expected” income tax expense (computed by applying the U.S. federal income tax rate of 35% ) due to the following (in thousands): Years ended December 31, 2016 2015 2014 United States federal tax expense (benefit) at statutory rate $ (12,400 ) $ (28,938 ) $ (24,687 ) State taxes, net of United States federal tax expense (benefit) (533 ) (1,240 ) (1,083 ) Change in valuation allowance 13,148 27,821 27,759 Non-deductible stock compensation 144 218 270 Impact of non-U.S. jurisdictional tax rate difference 132 648 529 Research and development tax credit (338 ) (243 ) (325 ) Increase (reversal) of unrecognized tax benefits 135 (1,269 ) (901 ) Non-U.S. withholding tax 452 141 393 Other 382 2,028 (675 ) Total income tax expense (benefit) $ 1,122 $ (834 ) $ 1,280
Schedule of Net Deferred Tax Assets	Net deferred tax assets are comprised of the following (in thousands): December 31, 2016 2015 Deferred tax assets: United States federal net operating loss carryforwards $ 93,985 $ 84,426 Deferred expenses 1,136 1,591 Research and development tax credit carryforwards 24,702 24,442 Alternative minimum tax credit carryforward 3,561 3,626 Net unrealized loss on investments 97 97 Accrued loss on excess office facilities 1,178 959 Stock-based compensation 4,112 11,441 State net operating loss carryforwards 11,354 10,079 Foreign net operating loss carryforwards 29,863 30,657 Deferred revenue 156 82 Equipment, software, and leasehold improvements 4,636 4,263 Intangibles 7 12 Net unrealized gains and basis differences on investments 1,874 — Other 1,624 5,150 Gross deferred tax assets 178,285 176,825 Less valuation allowance 176,274 173,872 Gross deferred tax assets, net of valuation allowance $ 2,011 $ 2,953 Deferred tax liabilities: Other intangible assets $ (50 ) $ (404 ) Net unrealized gains and basis differences on investments — (78 ) Other (794 ) (218 ) Prepaid expenses (438 ) (1,384 ) Gross deferred tax liabilities (1,282 ) (2,084 ) Net deferred tax assets (liabilities) $ 729 $ 869
Schedule of Unrecognized Tax Benefits	Reconciliation of the beginning and ending balances of the total amounts of unrecognized tax benefits (in thousands): Years ended December 31, 2016 2015 2014 Balance, beginning of year $ 320 $ 3,541 $ 4,505 Increases related to prior year tax positions 38 — — Decreases related to prior year tax positions — (33 ) (196 ) Settlements with taxing authorities — (3,285 ) — Increases related to current year tax positions 135 97 130 Expiration of the statute of limitations — — (898 ) Balance, end of year $ 493 $ 320 $ 3,541

Earnings (Loss) Per Share (Tabl

Earnings (Loss) Per Share (Tables)	12 Months Ended
	Dec. 31, 2016
Earnings Per Share [Abstract]
Calculation of Basic and Diluted Earnings Per Share	Basic and diluted net income (loss) per share (EPS) (in thousands, except per share data): Years ended December 31, 2016 2015 2014 Net income (loss) $ (36,550 ) $ (81,847 ) $ (71,815 ) Weighted average common shares outstanding used to compute basic EPS 36,781 36,165 35,947 Dilutive effect of stock based awards — — — Weighted average common shares outstanding used to compute diluted EPS 36,781 36,165 35,947 Basic EPS $ (0.99 ) $ (2.26 ) $ (2.00 ) Diluted EPS $ (0.99 ) $ (2.26 ) $ (2.00 )

Commitments and Contingencies (

Commitments and Contingencies (Tables)	12 Months Ended
	Dec. 31, 2016
Commitments and Contingencies Disclosure [Abstract]
Schedule of Future Minimum Payments	Future minimum payments as of December 31, 2016 are as follows (in thousands): Office Leases 2017 $ 5,302 2018 4,499 2019 4,765 2020 4,477 2021 4,325 Thereafter 10,528 Total minimum payments (a) $ 33,896

Segment Information (Tables)

Segment Information (Tables)	12 Months Ended
	Dec. 31, 2016
Segment Reporting [Abstract]
Segment Results	Segment results for the years ended December 31, 2016 , 2015 and 2014 were as follows (in thousands): Consumer Media 2016 2015 2014 Revenue $ 25,051 $ 28,613 $ 39,121 Cost of revenue 7,074 13,257 13,466 Gross profit 17,977 15,356 25,655 Operating expenses 18,399 26,526 41,950 Operating income (loss) $ (422 ) $ (11,170 ) $ (16,295 ) Mobile Services 2016 2015 2014 Revenue $ 70,278 $ 65,935 $ 79,981 Cost of revenue 50,026 47,834 52,193 Gross profit 20,252 18,101 27,788 Operating expenses 34,439 44,311 53,527 Operating income (loss) $ (14,187 ) $ (26,210 ) $ (25,739 ) Games 2016 2015 2014 Revenue $ 25,139 $ 30,748 $ 37,110 Cost of revenue 7,919 9,291 11,074 Gross profit 17,220 21,457 26,036 Operating expenses 19,644 29,086 37,170 Operating income (loss) $ (2,424 ) $ (7,629 ) $ (11,134 ) Corporate 2016 2015 2014 Cost of revenue $ (51 ) $ (85 ) $ (352 ) Extinguishment of liability — — (10,580 ) Operating expenses 20,192 24,263 26,917 Operating income (loss) $ (20,141 ) $ (24,178 ) $ (15,985 )
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): Years ended December 31, 2016 2015 2014 United States $ 41,505 $ 46,893 $ 61,660 Europe 13,700 15,166 26,575 Republic of Korea 43,236 37,832 39,852 Rest of the World 22,027 25,405 28,125 Total $ 120,468 $ 125,296 $ 156,212
Long-Lived Assets by Geographic Region	Long-lived assets (consists of equipment, software, leasehold improvements, other intangible assets, and goodwill) by geographic region (in thousands): December 31, 2016 2015 2013 United States $ 13,052 $ 16,821 $ 33,421 Europe 3,920 4,898 6,696 Republic of Korea 168 282 547 Rest of the World 1,909 2,015 3,048 Total long-lived assets $ 19,049 $ 24,016 $ 43,712

Quarterly Information (Unaudi43

Quarterly Information (Unaudited) (Tables)	12 Months Ended
	Dec. 31, 2016
Quarterly Financial Information Disclosure [Abstract]
Schedule of Quarterly Financial Information	The following table summarizes the unaudited statement of operations for each quarter of 2016 and 2015 (in thousands, except per share data): Total Dec. 31 Sept. 30 (2) June 30 Mar. 31 2016 Net revenue $ 120,468 $ 31,453 $ 31,051 $ 29,734 $ 28,230 Gross profit 55,500 14,095 14,311 14,036 13,058 Operating (loss) income (37,174 ) (6,369 ) (8,389 ) (7,637 ) (14,779 ) Net income (loss) (36,550 ) (9,976 ) (3,056 ) (8,347 ) (15,171 ) Basic net income (loss) per share (1) (0.99 ) (0.27 ) (0.08 ) (0.23 ) (0.42 ) Diluted net income (loss) per share (1) (0.99 ) (0.27 ) (0.08 ) (0.23 ) (0.42 ) 2015 Net revenue $ 125,296 $ 29,922 $ 30,823 $ 33,954 $ 30,597 Gross profit 54,999 14,094 12,733 14,122 14,050 Operating (loss) income (69,187 ) (7,506 ) (21,962 ) (20,707 ) (19,012 ) Net income (loss) (81,847 ) (8,413 ) (21,184 ) (27,781 ) (24,469 ) Basic net income (loss) per share (1) (2.26 ) (0.23 ) (0.59 ) (0.77 ) (0.68 ) Diluted net income (loss) per share (1) (2.26 ) (0.23 ) (0.59 ) (0.77 ) (0.68 ) (1) The sum of the quarterly net income per share amounts will not necessarily equal net income per share for the year due to the use of weighted average quarterly shares and the effects of rounding. (2) Included in third quarter 2016 net income was a $4.0 million pretax gain related to the 2015 sale of Slingo, described in Note 3. Acquisitions and Disposals, and a $2.0 million pretax gain related to the sale of an intangible asset, described in Note 7. Other Intangible Assets.

Description of Business and S44

Description of Business and Summary of Significant Accounting Policies (Narrative) (Detail) - USD ($)	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Depreciation and Amortization
Depreciation expense	$ 6,000,000	$ 8,100,000	$ 8,500,000
Deferred Costs
Impairment of ongoing project, deferred costs	0	0	700,000
Advertising Expense
Advertising expense	$ 6,100,000	$ 16,500,000	$ 23,100,000
Equipment and Software | Minimum
Depreciation and Amortization
Useful life	3 years
Equipment and Software | Maximum
Depreciation and Amortization
Useful life	5 years

Acquisitions and Disposals (Det

Acquisitions and Disposals (Details) - USD ($) $ in Thousands	Jul. 24, 2015	Aug. 31, 2016	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014	Sep. 30, 2015
Business Acquisition [Line Items]
Cash received			$ 4,000	$ 10,000	$ 0
Slingo and Social Casino
Business Acquisition [Line Items]
Sale price	$ 18,000
Cash received	10,000	$ 4,000
Proceeds receivable			$ 4,000
Deferred gain recognized	4,000
Foreign currency gain	500
Income tax benefit	1,600
Intangible assets disposed of	5,700					$ 5,700
Net property, plant and equipment disposed of	300
Other net assets disposed of	400
Deferred tax liabilities disposed of	1,600
Goodwill disposed of	$ 3,600					$ 3,600

Rhapsody Joint Venture (Additio

Rhapsody Joint Venture (Additional Information) (Detail) - USD ($)	Jan. 24, 2017	Dec. 31, 2016	Mar. 31, 2015	Mar. 31, 2010	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014	Dec. 01, 2016
Schedule of Equity Method Investments [Line Items]
Losses recorded in the operations of Rhapsody					$ 6,533,000	$ 14,521,000	$ 4,452,000
Advance to Rhapsody					3,500,000	5,000,000	0
Commitment to Rhapsody		$ 1,500,000			$ 1,500,000	0
Rhapsody America LLC
Schedule of Equity Method Investments [Line Items]
Ownership interest (percent)		42.00%			42.00%
Cash payments				$ 18,000,000
Liquidation preference		$ 10,000,000			$ 10,000,000
Losses recorded in the operations of Rhapsody					6,500,000	14,500,000	$ 4,500,000
Carrying value of Rhapsody investment		0			0
Advance to Rhapsody		3,500,000	$ 5,000,000
Commitment to Rhapsody		$ 1,500,000			$ 1,500,000
Interest rate on loan to Rhapsody (as a percent)		10.00%	9.00%
Loan commitment to Rhapsody								$ 5,000,000
Interest income from related party						$ 200,000
Prime Rate | Rhapsody America LLC
Schedule of Equity Method Investments [Line Items]
Basis spread on variable rate (as a percent)			5.25%
Subsequent Event | Rhapsody America LLC
Schedule of Equity Method Investments [Line Items]
Advance to Rhapsody	$ 1,500,000

Rhapsody Joint Venture (Summari

Rhapsody Joint Venture (Summarized Financial Information for Rhapsody) (Detail) - Rhapsody America LLC - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Gross Profit (Loss)
Net revenue	$ 208,085	$ 201,987	$ 173,484
Gross profit	38,407	32,761	32,145
Net loss	(14,913)	(35,479)	$ (21,336)
Assets and Liabilities
Current assets	55,831	53,274
Non-current assets	18,273	20,520
Current liabilities	104,906	92,794
Non-current liabilities	$ 20,238	$ 20,295

Fair Value Measurements (Financ

Fair Value Measurements (Financial Assets Measured at Fair Value on a Recurring Basis) (Detail) - USD ($) $ in Thousands	Dec. 31, 2016	Dec. 31, 2015
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Financial assets fair value	$ 80,525	$ 104,793
Amortized Cost	79,764	102,429
Cash and Cash Equivalents
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Financial assets fair value	33,721	47,315
Amortized Cost	33,721	47,315
Cash and Cash Equivalents | Cash
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Financial assets fair value	32,585	23,152
Amortized Cost	32,585	23,152
Cash and Cash Equivalents | Money market funds
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Financial assets fair value	136	5,061
Amortized Cost	136	5,061
Cash and Cash Equivalents | Corporate notes and bonds
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Financial assets fair value	1,000	19,102
Amortized Cost	1,000	19,102
Short-term Investments
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Financial assets fair value	43,331	51,814
Amortized Cost	43,343	51,862
Short-term Investments | Corporate notes and bonds
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Financial assets fair value	43,331	51,814
Amortized Cost	43,343	51,862
Restricted cash equivalents and investments
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Amortized Cost	2,700	2,890
Restricted cash equivalents and investments | Restricted cash equivalents and investments
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Financial assets fair value	2,700	2,890
Equity investments in publicly traded securities | Equity investments in publicly traded securities
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Financial assets fair value		1,721
Amortized Cost		362
Related Party Investment | Warrant issued by Rhapsody (included in Other assets)
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Financial assets fair value	773	1,053
Amortized Cost	0	0
Level 1
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Financial assets fair value	32,721	29,934
Level 1 | Cash and Cash Equivalents
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Financial assets fair value	32,721	28,213
Level 1 | Cash and Cash Equivalents | Cash
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Financial assets fair value	32,585	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	136	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 investments in publicly traded securities | Equity investments in publicly traded securities
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Financial assets fair value		1,721
Level 1 | Related Party Investment | Warrant issued by Rhapsody (included in Other assets)
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	47,031	73,806
Level 2 | Cash and Cash Equivalents
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Financial assets fair value	1,000	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	1,000	19,102
Level 2 | Short-term Investments
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Financial assets fair value	43,331	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	43,331	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 investments in publicly traded securities | Equity investments in publicly traded securities
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Financial assets fair value		0
Level 2 | Related Party Investment | Warrant issued by Rhapsody (included in Other assets)
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	773	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 investments in publicly traded securities | Equity investments in publicly traded securities
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Financial assets fair value		0
Level 3 | Related Party Investment | Warrant issued by Rhapsody (included in Other assets)
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Financial assets fair value	$ 773	$ 1,053

Fair Value Measurements (Short-

Fair Value Measurements (Short-term Investments) (Details) - Estimated Fair Value - Short-term Investments $ in Thousands	Dec. 31, 2016USD ($)
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Within one year	$ 41,135
Between one year and five years	2,196
Total short-term investments	$ 43,331

Fair Value Measurements (Additi

Fair Value Measurements (Additional Information) (Detail) - USD ($) $ in Thousands	1 Months Ended	12 Months Ended
	Feb. 28, 2015	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Proceeds from sale of equity and other investments		$ 4,967	$ 459	$ 2,754
Gain (loss) on sale of equity and other investments, net		8,473	(159)	2,371
Financial assets fair value		80,525	104,793
J-Stream, Inc.
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Proceeds from sale of equity and other investments		3,300	500	2,800
Gain (loss) on sale of equity and other investments, net		2,500	$ 400	$ 2,400
Warrant | Related Party Debt Obligation
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Expected term (in years)	5 years
Expected volatility rate (as a percent)	55.00%
Financial assets fair value	$ 1,200
Loss on warrants		$ (300)

Allowance for Doubtful Accoun51

Allowance for Doubtful Accounts Receivable and Sales Returns (Activity in Allowance for Doubtful Accounts Receivable and Sales Returns) (Detail) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Movement in Valuation Allowances and Reserves [Roll Forward]
Beginning Balance	$ 923	$ 1,642
Ending Balance	802	923	$ 1,642
Allowance for Doubtful Accounts Receivable
Movement in Valuation Allowances and Reserves [Roll Forward]
Beginning Balance	765	1,288	966
Addition (reduction) to allowance	36	(355)	433
Amounts written off	(152)	(77)	0
Effects of foreign currency translation	(16)	(91)	(111)
Ending Balance	633	765	1,288
Allowance for Sales Returns
Movement in Valuation Allowances and Reserves [Roll Forward]
Beginning Balance	158	354	569
Addition (reduction) to allowance	15	(186)	(209)
Amounts written off	(3)	(9)	(6)
Effects of foreign currency translation	(1)	(1)	0
Ending Balance	$ 169	$ 158	$ 354

Allowance for Doubtful Accoun52

Allowance for Doubtful Accounts Receivable and Sales Returns (Additional Information) (Detail) $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2016USD ($)	Sep. 30, 2016USD ($)	Jun. 30, 2016USD ($)	Mar. 31, 2016USD ($)	Dec. 31, 2015USD ($)	Sep. 30, 2015USD ($)	Jun. 30, 2015USD ($)	Mar. 31, 2015USD ($)	Dec. 31, 2016USD ($)Customer		Dec. 31, 2015USD ($)Customer		Dec. 31, 2014USD ($)Customer
Concentration Risk [Line Items]
Net revenue | $	$ 31,453	$ 31,051	$ 29,734	$ 28,230	$ 29,922	$ 30,823	$ 33,954	$ 30,597	$ 120,468	[1]	$ 125,296	[1]	$ 156,212	[1]
Accounts Receivable
Concentration Risk [Line Items]
Number of major customers									1
Percentage by major customer									64.00%
Accounts Receivable | Company A
Concentration Risk [Line Items]
Number of major customers											1
Percentage by major customer											52.00%
Accounts Receivable | Company B
Concentration Risk [Line Items]
Number of major customers											1
Percentage by major customer											12.00%
Mobile Services | Revenue by Segment
Concentration Risk [Line Items]
Number of major customers									1		1		1
Percentage by major customer									32.00%		26.00%		20.00%
Net revenue | $									$ 38,900		$ 32,900		$ 31,900
[1]	December 31, 2016 December 31, 2015 December 31, 2014Components of Revenue License Fees27,846 28,422 28,308Service Revenue92,622 96,874 127,904Net Revenue120,468 125,296 156,212

Other Intangible Assets (Schedu

Other Intangible Assets (Schedule of Intangible Asset by Class) (Detail) - USD ($) $ in Thousands	3 Months Ended
	Sep. 30, 2016	Jun. 30, 2016	Dec. 31, 2016	Dec. 31, 2015	Sep. 30, 2015	Jul. 24, 2015
Schedule of Finite-Lived Intangible Assets and Indefinite-lived intangible assets [Line Items]
Gross Amount			$ 61,617	$ 63,215
Accumulated Amortization			60,679	61,079
Net			938	2,136
Finite-lived intangible assets acquired		$ 200
Slingo and Social Casino
Schedule of Finite-Lived Intangible Assets and Indefinite-lived intangible assets [Line Items]
Intangible assets disposed of					$ 5,700	$ 5,700
Customer relationships
Schedule of Finite-Lived Intangible Assets and Indefinite-lived intangible assets [Line Items]
Gross Amount			29,308	30,182
Accumulated Amortization			28,781	29,236
Net			527	946
Developed technology
Schedule of Finite-Lived Intangible Assets and Indefinite-lived intangible assets [Line Items]
Gross Amount			23,574	24,047
Accumulated Amortization			23,263	23,244
Net			311	803
Patents, trademarks and tradenames
Schedule of Finite-Lived Intangible Assets and Indefinite-lived intangible assets [Line Items]
Gross Amount			3,530	3,717
Accumulated Amortization			3,430	3,398
Net			100	319
Service contracts
Schedule of Finite-Lived Intangible Assets and Indefinite-lived intangible assets [Line Items]
Gross Amount			5,205	5,269
Accumulated Amortization			5,205	5,201
Net			$ 0	$ 68
Domain Name
Schedule of Finite-Lived Intangible Assets and Indefinite-lived intangible assets [Line Items]
Gain on sale of intangible asset	$ 2,000

Other Intangible Assets (Additi

Other Intangible Assets (Additional Information and Expected Amortization) (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Goodwill and Intangible Assets Disclosure [Abstract]
Amortization expense	$ 1,000	$ 2,300	$ 3,400
Amortization Expense, Fiscal Year Maturity [Abstract]
2,017	642
2,018	296
Net	$ 938	$ 2,136

Goodwill (Changes in Goodwill)

Goodwill (Changes in Goodwill) (Detail) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015
Goodwill [Roll Forward]
Balance, beginning of year, Goodwill, gross	$ 323,733	$ 328,008
Balance, beginning of year, Accumulated impairment lossses	(310,653)	(310,653)
Balance, beginning of year, Goodwill, Net	13,080	17,355
Increases (decreases) due to current year acquisitions (disposals)	0	(3,620)
Effects of foreign currency translation	(223)	(655)
Total goodwill increase (decrease)	(223)	(4,275)
Balance, end of year, Goodwill, gross	323,510	323,733
Balance, end of year, Accumulated impairment lossses	(310,653)	(310,653)
Balance, end of year, Goodwill, Net	$ 12,857	$ 13,080

Goodwill (Goodwill by Segments

Goodwill (Goodwill by Segments and Acquisition) (Detail) - USD ($) $ in Thousands	Dec. 31, 2016	Dec. 31, 2015	Sep. 30, 2015	Jul. 24, 2015	Dec. 31, 2014
Goodwill [Line Items]
Goodwill	$ 12,857	$ 13,080			$ 17,355
Slingo and Social Casino
Goodwill [Line Items]
Goodwill disposed of			$ 3,600	$ 3,600
Consumer Media
Goodwill [Line Items]
Goodwill	580	580
Mobile Services
Goodwill [Line Items]
Goodwill	1,979	2,202
Games
Goodwill [Line Items]
Goodwill	$ 10,298	$ 10,298

Accrued and Other Current Lia57

Accrued and Other Current Liabilities (Detail) - USD ($) $ in Thousands	Dec. 31, 2016	Dec. 31, 2015
Accounts Payable and Accrued Liabilities, Current [Abstract]
Royalties and other fulfillment costs	$ 2,629	$ 3,094
Employee compensation, commissions and benefits	5,136	5,958
Sales, VAT and other taxes payable	3,258	2,976
Other	4,402	5,292
Total accrued and other current liabilities	$ 15,425	$ 17,320

Restructuring Charges (Details)

Restructuring Charges (Details) - Employee Separation Costs - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Restructuring Cost and Reserve [Line Items]
Costs incurred and charged to expense	$ 1,489	$ 5,279	$ 4,992
Restructuring Reserve [Roll Forward]
Accrued liability beginning balance	1,404	449	756
Costs incurred and charged to expense	1,489	5,279	4,992
Cash payments	(2,684)	(4,324)	(5,299)
Accrued liability ending balance	$ 209	$ 1,404	$ 449

Lease Exit and Related Charge59

Lease Exit and Related Charges (Changes to Accrued Loss on Excess Office Facilities) (Detail) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Disclosure Changes To Accrued Loss On Excess Office Facilities [Abstract]
Lease exit and related charges	$ 2,239	$ 2,501	$ 880
Percent reduction in office space	69.00%	43.00%
Accrued Loss on Excess Office Facilities [Roll Forward]
Accrued loss, beginning of year	$ 2,595	$ 234	254
Additions and adjustments to the lease loss accrual, including sublease income estimate revision, and related asset write-downs	2,428	2,981	668
Less amounts paid, net of sublease income	(1,837)	(620)	(688)
Accrued loss, end of year	3,186	2,595	234
Less current portion (included in Accrued and other current liabilities)	(1,024)	(822)	(234)
Accrued loss, non-current portion (included in Other long term liabilities)	$ 2,162	$ 1,773	$ 0

Shareholders_ Equity (Accumulat

Shareholders’ Equity (Accumulated Other Comprehensive Income (Loss)) (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Accumulated Other Comprehensive Income (Loss) [Roll Forward]
Accumulated other comprehensive income (loss), beginning of period	$ 120,683	$ 197,198	$ 268,981
Unrealized gains (losses), net of tax effects of $10, $0, and $0	(1,303)	(955)	(4,145)
Net current period other comprehensive income	(2,165)	(4,228)	(7,557)
Accumulated other comprehensive loss balance, end of period	88,581	120,683	197,198
Total accumulated other comprehensive income (loss), end of period	(61,645)	(59,480)	(55,252)
Investments
Accumulated Other Comprehensive Income (Loss) [Roll Forward]
Accumulated other comprehensive income (loss), beginning of period	1,297	2,252	6,397
Unrealized gains (losses), net of tax effects of $10, $0, and $0	1,647	(562)	(1,774)
Reclassification adjustments for losses (gains) included in other income (expense)	(2,950)	(393)	(2,371)
Net current period other comprehensive income	(1,303)	(955)	(4,145)
Accumulated other comprehensive loss balance, end of period	(6)	1,297	2,252
Accumulated Other Comprehensive Income (Loss), Tax [Abstract]
Unrealized gains (losses), tax effects	10	0	0
Reclassification adjustments for losses (gains) included in other income (expense), tax effects	0	0	4
Foreign currency translation
Accumulated Other Comprehensive Income (Loss) [Roll Forward]
Accumulated other comprehensive income (loss), beginning of period	(60,777)	(57,504)	(54,092)
Translation adjustments	(1,134)	(3,009)	(3,364)
Reclassification adjustments for losses (gains) included in other income (expense)	272	(264)	(48)
Net current period other comprehensive income	(862)	(3,273)	(3,412)
Accumulated other comprehensive loss balance, end of period	$ (61,639)	$ (60,777)	$ (57,504)

Shareholders_ Equity (Narrative

Shareholders’ Equity (Narrative) (Details) - Preferred stock, Series A	12 Months Ended
	Dec. 31, 2016vote
Class of Stock [Line Items]
Number of votes available	1,000
Multiple of common stock dividends awarded	1,000

Employee Stock and Benefit Pl62

Employee Stock and Benefit Plans (Equity Compensation Plans Narrative) (Details) $ in Thousands, shares in Millions	12 Months Ended
	Dec. 31, 2016USD ($)shares	Dec. 31, 2015USD ($)	Dec. 31, 2014USD ($)
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock reserved for future issuance | shares	6.5
Capital shares reserved for future issuance | shares	0.3
Total stock-based compensation expense | $	$ 5,424	$ 4,698	$ 5,204
Total unrecognized compensation cost | $	$ 6,700
Total unrecognized compensation cost, expected recognition period	2 years
Stock Options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period	4 years
Stock Options | Minimum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Expiration period	7 years
Restricted Stock | Minimum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period	2 years
Restricted Stock | Maximum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period	4 years
2005 Plan | Restricted Stock Unit
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Factor for increase	1.6

Employee Stock and Benefit Pl63

Employee Stock and Benefit Plans (Weighted-Average Assumptions Used to Determine Fair Value of Options Granted) (Detail)	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Expected dividend yield	0.00%	0.00%	0.00%
Risk-free interest rate	1.59%	1.47%	1.40%
Expected term	5 years 1 month 6 days	4 years 9 months 18 days	4 years 6 months
Volatility	35.00%	38.00%	41.00%

Employee Stock and Benefit Pl64

Employee Stock and Benefit Plans (Restricted Stock Unit and Award Activity) (Details) - Restricted Stock Unit - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Number of Shares [Roll Forward]
Nonvested shares, beginning of year (in shares)	324	400	490
Granted (in shares)	832	296	159
Vested (in shares)	(802)	(109)	(193)
Forfeited/Canceled (in shares)	(22)	(263)	(56)
Nonvested shares, end of year (in shares)	332	324	400
Weighted Average Grant Date Fair Value [Roll Forward]
Nonvested shares, beginning of year (in dollars per share)	$ 5.94	$ 7.47	$ 7.80
Granted (in dollars per share)	3.75	5.44	7.60
Vested (in dollars per share)	3.83	7.01	8.35
Forfeited/Canceled (in dollars per share)	5.61	7.27	7.73
Nonvested shares, beginning of year (in dollars per share)	$ 5.59	$ 5.94	$ 7.47
Total Fair Value of Vested Awards
Total fair value of vested awards	$ 3,069	$ 763	$ 1,608
Additional Information
Aggregate intrinsic value, outstanding	$ 1,600
Weighted average remaining contractual term	1 year

Employee Stock and Benefit Pl65

Employee Stock and Benefit Plans (Stock Option Activity) (Details) - USD ($) $ / shares in Units, $ in Millions	Dec. 06, 2016	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Stock Options
Options Outstanding, Number of Shares [Roll Forward]
Number of shares, beginning balance		5,517,000	6,724,000	6,625,000
Number of shares, Options granted at common stock price		1,230,000	907,000	2,036,000
Number of shares, Options exercised		(90,000)	(14,000)	(44,000)
Number of shares, Options cancelled		(796,000)	(2,100,000)	(1,893,000)
Number of shares, ending balance		5,861,000	5,517,000	6,724,000
Number of shares, Exercisable		1,940,000
Number of shares, Vested and expected to vest		5,550,000
Options Outstanding, Weighted Average Exercise Price [Roll Forward]
Weighted average exercise price, beginning balance (in dollars per share)		$ 7.58	$ 8.19	$ 10.21
Weighted average exercise price, Options granted at common stock price (in dollars per share)		4.50	5.31	7.44
Weighted average exercise price, Options exercised (in dollars per share)		3.69	1.92	7.26
Weighted average exercise price, Options canceled (in dollars per share)		8.81	8.59	14.47
Weighted average exercise price, ending balance (in dollars per share)		5.73	7.58	8.19
Weighted average exercise price, exercisable (in dollars per share)		7.04
Weighted average exercise price, vested and expected to vest (in dollars per share)		5.79
Weighted Average Fair Value Grant
Weighted average fair value grant, Options granted at common stock prrice (in dollars per share)		$ 1.51	$ 1.70	$ 2.51
Options, Additional Information
Weighted average remaining contractual life, outstanding		5 years 9 months 18 days
Weighted average remaining contractual life, exercisable		4 years 3 months 18 days
Weighted average remaining contractual life, vested and expected to vest		5 years 8 months 12 days
Intrinsic value, options outstanding		$ 1
Intrinsic value, options exercisable		0.1
Intrinsic value, options vested and expected to vest		0.9
Intrinsic value, options exercised		$ 0.1
Market Based Stock Options
Options Outstanding, Number of Shares [Roll Forward]
Number of shares, Options granted at common stock price		400,000	200,000
Stock Option Exchange Program | Stock Options
Options Outstanding, Number of Shares [Roll Forward]
Number of shares, Options granted at common stock price		1,961,000
Number of shares, Options cancelled		(1,961,000)
Options Outstanding, Weighted Average Exercise Price [Roll Forward]
Weighted average exercise price, Options granted at common stock price (in dollars per share)	$ 4.73	$ 4.73
Weighted average exercise price, Options canceled (in dollars per share)		8.11
Weighted Average Fair Value Grant
Weighted average fair value grant, Options granted at common stock prrice (in dollars per share)		$ 0.74

Employee Stock and Benefit Pl66

Employee Stock and Benefit Plans (Employee Stock Purchase Plan Narrative) (Details) - Employee Stock Purchase Plan - shares	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Discount from market price percentage from ofering date	85.00%
Shares purchased under ESPP	53,600	94,400	78,500

Employee Stock and Benefit Pl67

Employee Stock and Benefit Plans (Retirement Savings Plan Narrative) (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Matching contribution percentage	50.00%
Maximum contributions per employee percentage	3.00%
Contribution amount	$ 0.3	$ 0.6	$ 0.7

Employee Stock and Benefit Pl68

Employee Stock and Benefit Plans (Stock Option Exchange) (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Millions	Dec. 06, 2016	Nov. 03, 2016	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Additional compensation cost to be recognized			$ 6.7
Additional compensation cost, expected recognition period			2 years
Stock Options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Exercise price of options granted (in dollars per share)			$ 4.50	$ 5.31	$ 7.44
Options granted			1,230	907	2,036
Stock Option Exchange Program | Stock Options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Minimum exercise price to qualify for program (in dollars per share)		$ 4.33
Exercise price of options granted (in dollars per share)	$ 4.73		$ 4.73
Options granted			1,961
Options granted, percentage of eligible shares outstanding			58.00%
Additional compensation cost to be recognized			$ 1.5
Additional compensation cost, expected recognition period			2 years

Income Taxes (Components of Inc

Income Taxes (Components of Income (Loss) Before Income Taxes) (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Income (Loss) from Continuing Operations [Abstract]
United States operations	$ (34,100)	$ (76,450)	$ (67,186)
Foreign operations	(1,328)	(6,231)	(3,349)
Income (loss) before income taxes	$ (35,428)	$ (82,681)	$ (70,535)

Income Taxes (Components of I70

Income Taxes (Components of Income Tax Expense (Benefit)) (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Current:
United States federal	$ 712	$ 176	$ 547
State and local	59	(44)	69
Foreign	221	592	901
Total current	992	724	1,517
Deferred:
United States federal	3	(1,636)	21
State and local	1	1	(40)
Foreign	126	77	(218)
Total deferred	130	(1,558)	(237)
Total income tax expense (benefit)	$ 1,122	$ (834)	$ 1,280

Income Taxes (Income Tax Rate R

Income Taxes (Income Tax Rate Reconciliation) (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Income Tax Disclosure [Abstract]
U.S. federal income tax rate	35.00%	35.00%	35.00%
Income Tax Expense (Benefit), Continuing Operations, Income Tax Reconciliation [Abstract]
United States federal tax expense (benefit) at statutory rate	$ (12,400)	$ (28,938)	$ (24,687)
State taxes, net of United States federal tax expense (benefit)	(533)	(1,240)	(1,083)
Change in valuation allowance	13,148	27,821	27,759
Non-deductible stock compensation	144	218	270
Impact of non-U.S. jurisdictional tax rate difference	132	648	529
Research and development tax credit	(338)	(243)	(325)
Increase (reversal) of unrecognized tax benefits	135	(1,269)	(901)
Non-U.S. withholding tax	452	141	393
Other	382	2,028	(675)
Total income tax expense (benefit)	$ 1,122	$ (834)	$ 1,280

Income Taxes (Net Deferred Tax

Income Taxes (Net Deferred Tax Assets) (Details) - USD ($) $ in Thousands	Dec. 31, 2016	Dec. 31, 2015
Deferred Tax Assets [Abstract]
United States federal net operating loss carryforwards	$ 93,985	$ 84,426
Deferred expenses	1,136	1,591
Research and development tax credit carryforwards	24,702	24,442
Alternative minimum tax credit carryforward	3,561	3,626
Net unrealized loss on investments	97	97
Accrued loss on excess office facilities	1,178	959
Stock-based compensation	4,112	11,441
State net operating loss carryforwards	11,354	10,079
Foreign net operating loss carryforwards	29,863	30,657
Deferred revenue	156	82
Equipment, software, and leasehold improvements	4,636	4,263
Intangibles	7	12
Net unrealized gains and basis differences on investments	1,874	0
Other	1,624	5,150
Gross deferred tax assets	178,285	176,825
Less valuation allowance	176,274	173,872
Gross deferred tax assets, net of valuation allowance	2,011	2,953
Deferred Tax Liabilities [Abstract]
Other intangible assets	(50)	(404)
Net unrealized gains and basis differences on investments	0	(78)
Other	(794)	(218)
Prepaid expenses	(438)	(1,384)
Gross deferred tax liabilities	(1,282)	(2,084)
Net deferred tax assets	$ 729	$ 869

Income Taxes (Schedule of Unrec

Income Taxes (Schedule of Unrecognized Tax Benefits) (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward]
Balance, beginning of year	$ 320	$ 3,541	$ 4,505
Increases related to prior year tax positions	38	0	0
Decreases related to prior year tax positions	0	(33)	(196)
Settlements with taxing authorities	0	(3,285)	0
Increases related to current year tax positions	135	97	130
Expiration of the statute of limitations	0	0	(898)
Balance, end of year	$ 493	$ 320	$ 3,541

Income Taxes (Narrative) (Detai

Income Taxes (Narrative) (Details) - USD ($)	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Income Tax [Line Items]
Income tax receivables		$ 100,000
Valuation Allowance [Abstract]
Change in valuation allowance	$ 2,400,000	24,400,000
Valuation allowance	176,274,000	173,872,000
Alternative minimum tax credit carryforward	3,561,000	3,626,000
Research and development tax credit carryforwards	24,702,000	24,442,000
Income Tax Uncertainties [Abstract]
Unrecognized tax benefits	493,000	320,000	$ 3,541,000	$ 4,505,000
Income Tax Examination [Abstract]
Accrued interest and penalties related to uncertain tax positions	0	0
Internal Revenue Service (IRS)
Valuation Allowance [Abstract]
Operating loss carryforwards	$ 268,500,000	$ 241,200,000

Earnings (Loss) Per Share (Deta

Earnings (Loss) Per Share (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2016	Sep. 30, 2016	Jun. 30, 2016	Mar. 31, 2016	Dec. 31, 2015	Sep. 30, 2015	Jun. 30, 2015	Mar. 31, 2015	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Earnings Per Share [Abstract]
Net income (loss)	$ (9,976)	$ (3,056)	$ (8,347)	$ (15,171)	$ (8,413)	$ (21,184)	$ (27,781)	$ (24,469)	$ (36,550)	$ (81,847)	$ (71,815)
Weighted average common shares outstanding used to compute basic EPS									36,781	36,165	35,947
Dilutive effect of stock based awards									0	0	0
Weighted average common shares outstanding used to compute diluted EPS									36,781	36,165	35,947
Basic EPS (in dollars per share)	$ (0.27)	$ (0.08)	$ (0.23)	$ (0.42)	$ (0.23)	$ (0.59)	$ (0.77)	$ (0.68)	$ (0.99)	$ (2.26)	$ (2)
Diluted EPS (in dollars per share)	$ (0.27)	$ (0.08)	$ (0.23)	$ (0.42)	$ (0.23)	$ (0.59)	$ (0.77)	$ (0.68)	$ (0.99)	$ (2.26)	$ (2)
Shares of common stock excluded from the calculation of diluted net income per share because of antidilutive effect									4,800	5,700	6,300

Commitments and Contingencies76

Commitments and Contingencies (Commitments) (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Office Leases
2,017	$ 5,302
2,018	4,499
2,019	4,765
2,020	4,477
2,021	4,325
Thereafter	10,528
Total minimum payments (a)	33,896
Sublease income receivable in future	12,100
Rent expense	4,200	$ 5,800	$ 6,800
Accrued Loss on Excess Office Facilities
Office Leases
Total minimum payments (a)	$ 3,200

Segment Information (Narrative)

Segment Information (Narrative) (Detail)	12 Months Ended
	Dec. 31, 2016Segment
Segment Reporting [Abstract]
Number of reporting segments	3

Segment Information (Segment Re

Segment Information (Segment Results) (Detail) - USD ($) $ in Thousands		3 Months Ended								12 Months Ended
		Dec. 31, 2016	Sep. 30, 2016	Jun. 30, 2016	Mar. 31, 2016	Dec. 31, 2015	Sep. 30, 2015	Jun. 30, 2015	Mar. 31, 2015	Dec. 31, 2016		Dec. 31, 2015		Dec. 31, 2014
Segment Reporting Information [Line Items]
Revenue		$ 31,453	$ 31,051	$ 29,734	$ 28,230	$ 29,922	$ 30,823	$ 33,954	$ 30,597	$ 120,468	[1]	$ 125,296	[1]	$ 156,212	[1]
Cost of revenue	[2]									64,968		70,297		76,381
Extinguishment of liability										0		0		10,580
Gross profit		14,095	14,311	14,036	13,058	14,094	12,733	14,122	14,050	55,500		54,999		90,411
Operating expenses										92,674		124,186		159,564
Operating (loss) income		$ (6,369)	$ (8,389)	$ (7,637)	$ (14,779)	$ (7,506)	$ (21,962)	$ (20,707)	$ (19,012)	(37,174)		(69,187)		(69,153)
Operating Segments | Consumer Media
Segment Reporting Information [Line Items]
Revenue										25,051		28,613		39,121
Cost of revenue										7,074		13,257		13,466
Gross profit										17,977		15,356		25,655
Operating expenses										18,399		26,526		41,950
Operating (loss) income										(422)		(11,170)		(16,295)
Operating Segments | Mobile Services
Segment Reporting Information [Line Items]
Revenue										70,278		65,935		79,981
Cost of revenue										50,026		47,834		52,193
Gross profit										20,252		18,101		27,788
Operating expenses										34,439		44,311		53,527
Operating (loss) income										(14,187)		(26,210)		(25,739)
Operating Segments | Games
Segment Reporting Information [Line Items]
Revenue										25,139		30,748		37,110
Cost of revenue										7,919		9,291		11,074
Gross profit										17,220		21,457		26,036
Operating expenses										19,644		29,086		37,170
Operating (loss) income										(2,424)		(7,629)		(11,134)
Corporate
Segment Reporting Information [Line Items]
Cost of revenue										(51)		(85)		(352)
Extinguishment of liability										0		0		(10,580)
Operating expenses										20,192		24,263		26,917
Operating (loss) income										$ (20,141)		$ (24,178)		$ (15,985)
[1]	December 31, 2016 December 31, 2015 December 31, 2014Components of Revenue License Fees27,846 28,422 28,308Service Revenue92,622 96,874 127,904Net Revenue120,468 125,296 156,212
[2]	December 31, 2016 December 31, 2015 December 31, 2014Components of Cost of Revenue License Fees6,062 6,381 8,012Service Revenue58,906 63,916 68,369Net Revenue Costs64,968 70,297 76,381

Segment Information (Revenue by

Segment Information (Revenue by Geographic Region) (Detail) - USD ($) $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2016	Sep. 30, 2016	Jun. 30, 2016	Mar. 31, 2016	Dec. 31, 2015	Sep. 30, 2015	Jun. 30, 2015	Mar. 31, 2015	Dec. 31, 2016		Dec. 31, 2015		Dec. 31, 2014
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenue	$ 31,453	$ 31,051	$ 29,734	$ 28,230	$ 29,922	$ 30,823	$ 33,954	$ 30,597	$ 120,468	[1]	$ 125,296	[1]	$ 156,212	[1]
United States
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenue									41,505		46,893		61,660
Europe
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenue									13,700		15,166		26,575
Republic of Korea
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenue									43,236		37,832		39,852
Rest of the World
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenue									$ 22,027		$ 25,405		$ 28,125
[1]	December 31, 2016 December 31, 2015 December 31, 2014Components of Revenue License Fees27,846 28,422 28,308Service Revenue92,622 96,874 127,904Net Revenue120,468 125,296 156,212

Segment Information (Long-Lived

Segment Information (Long-Lived Assets by Geographic Region) (Detail) - USD ($) $ in Thousands	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Revenues from External Customers and Long-Lived Assets [Line Items]
Long-lived assets	$ 19,049	$ 24,016	$ 43,712
United States
Revenues from External Customers and Long-Lived Assets [Line Items]
Long-lived assets	13,052	16,821	33,421
Europe
Revenues from External Customers and Long-Lived Assets [Line Items]
Long-lived assets	3,920	4,898	6,696
Republic of Korea
Revenues from External Customers and Long-Lived Assets [Line Items]
Long-lived assets	168	282	547
Rest of the World
Revenues from External Customers and Long-Lived Assets [Line Items]
Long-lived assets	$ 1,909	$ 2,015	$ 3,048

Quarterly Information (Unaudi81

Quarterly Information (Unaudited) (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2016	Sep. 30, 2016	Jun. 30, 2016	Mar. 31, 2016	Dec. 31, 2015	Sep. 30, 2015	Jun. 30, 2015	Mar. 31, 2015	Dec. 31, 2016		Dec. 31, 2015		Dec. 31, 2014
Quarterly Financial Information Disclosure [Abstract]
Net revenue	$ 31,453	$ 31,051	$ 29,734	$ 28,230	$ 29,922	$ 30,823	$ 33,954	$ 30,597	$ 120,468	[1]	$ 125,296	[1]	$ 156,212	[1]
Gross profit	14,095	14,311	14,036	13,058	14,094	12,733	14,122	14,050	55,500		54,999		90,411
Operating (loss) income	(6,369)	(8,389)	(7,637)	(14,779)	(7,506)	(21,962)	(20,707)	(19,012)	(37,174)		(69,187)		(69,153)
Net income (loss)	$ (9,976)	$ (3,056)	$ (8,347)	$ (15,171)	$ (8,413)	$ (21,184)	$ (27,781)	$ (24,469)	$ (36,550)		$ (81,847)		$ (71,815)
Basic net income (loss) (in dollars per share)	$ (0.27)	$ (0.08)	$ (0.23)	$ (0.42)	$ (0.23)	$ (0.59)	$ (0.77)	$ (0.68)	$ (0.99)		$ (2.26)		$ (2)
Diluted net income (loss) (in dollars per share)	$ (0.27)	$ (0.08)	$ (0.23)	$ (0.42)	$ (0.23)	$ (0.59)	$ (0.77)	$ (0.68)	$ (0.99)		$ (2.26)		$ (2)
Domain Name
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Gain on sale of intangible asset		$ 2,000
Slingo
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Gain on sale of business		$ 4,000
[1]	December 31, 2016 December 31, 2015 December 31, 2014Components of Revenue License Fees27,846 28,422 28,308Service Revenue92,622 96,874 127,904Net Revenue120,468 125,296 156,212