Realnetworks (RNWK) 10-Q 2 Aug 18 2018 Q2 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	6 Months Ended
	Jun. 30, 2018	Jul. 30, 2018
Document and Entity Information [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Jun. 30, 2018
Document Fiscal Year Focus	2,018
Document Fiscal Period Focus	Q2
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		37,611,849

CONDENSED CONSOLIDATED BALANCE

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Jun. 30, 2018	Dec. 31, 2017
Current assets:
Cash and cash equivalents	$ 39,080	$ 51,196
Short-term investments	3,053	8,779
Trade accounts receivable, net of allowances of $660 and $937	13,127	12,689
Deferred costs, current portion	375	426
Prepaid expenses and other current assets	5,250	3,715
Current assets of discontinued operations	0	17,456
Total current assets	60,885	94,261
Equipment, software, and leasehold improvements, at cost:
Equipment and software	41,793	46,417
Leasehold improvements	3,511	3,536
Total equipment, software, and leasehold improvements, at cost	45,304	49,953
Less accumulated depreciation and amortization	42,083	46,093
Net equipment, software, and leasehold improvements	3,221	3,860
Restricted cash equivalents	1,880	2,400
Other assets	5,844	5,588
Deferred costs, non-current portion	679	955
Deferred tax assets, net	1,036	1,047
Other intangible assets, net	215	325
Goodwill	17,120	13,060
Total assets	90,880	121,496
Current liabilities:
Accounts payable	2,744	3,785
Accrued and other current liabilities	12,261	12,365
Commitment to Napster	2,750	2,750
Deferred revenue, current portion	2,155	3,097
Current liabilities of discontinued operations	0	17,107
Total current liabilities	19,910	39,104
Deferred revenue, non-current portion	353	443
Deferred rent	1,023	982
Deferred tax liabilities, net	170	19
Other long-term liabilities	1,054	1,775
Total liabilities	22,510	42,323
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 37,612 shares in 2018 and 37,341 shares in 2017	37	37
Additional paid-in capital	640,212	638,727
Accumulated other comprehensive loss	(60,752)	(59,547)
Retained deficit	(511,127)	(500,044)
Total shareholders’ equity	68,370	79,173
Total liabilities and shareholders’ equity	90,880	121,496
Preferred stock, Series A
Preferred stock, $0.001 par value, no shares issued and outstanding:
Preferred stock	0	0
Preferred stock, Undesignated series
Preferred stock, $0.001 par value, no shares issued and outstanding:
Preferred stock	$ 0	$ 0

CONDENSED CONSOLIDATED BALANCE3

CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($)	Jun. 30, 2018	Dec. 31, 2017
Allowance for Doubtful Accounts Receivable, Current	$ 660,000	$ 937,000
Preferred stock, par value (USD per share)	$ 0.001	$ 0.001
Preferred stock, shares issued	0
Preferred stock, shares outstanding	0
Common stock, par value (USD per share)	$ 0.001	$ 0.001
Common stock, authorized	250,000,000	250,000,000
Common stock, issued	37,612,000	37,341,000
Common stock, outstanding	37,612,000	37,341,000
Preferred stock, Series A
Preferred stock, authorized	200,000	200,000
Preferred stock, Undesignated series
Preferred stock, authorized	59,800,000	59,800,000

CONDENSED CONSOLIDATED STATEMEN

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS) - USD ($) shares in Thousands, $ in Thousands		3 Months Ended		6 Months Ended
		Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Revenue	[1]	$ 15,724	$ 21,605	$ 35,374	$ 41,296
Cost of revenue	[2]	4,625	6,287	9,761	12,856
Gross profit		11,099	15,318	25,613	28,440
Operating expenses:
Research and development		7,652	7,584	15,346	14,933
Sales and marketing		4,883	5,496	10,880	12,651
General and administrative		5,339	5,254	10,940	10,557
Restructuring and other charges		187	150	688	1,714
Lease exit and related benefit		(129)	0	(454)	0
Total operating expenses		17,932	18,484	37,400	39,855
Operating loss		(6,833)	(3,166)	(11,787)	(11,415)
Other income (expenses):
Interest income, net		111	109	198	237
Equity in net loss of Napster investment		0	(349)	0	(1,097)
Other income (expense), net		(42)	(13)	(83)	(239)
Total other income (expenses), net		69	(253)	115	(1,099)
Loss from continuing operations before income taxes		(6,764)	(3,419)	(11,672)	(12,514)
Income tax expense		166	360	436	815
Net loss from continuing operations		(6,930)	(3,779)	(12,108)	(13,329)
Income (Loss) from Discontinued Operations, Net of Tax, Attributable to Parent		0	393	0	519
Net loss		$ (6,930)	$ (3,386)	$ (12,108)	$ (12,810)
Income (Loss) from Continuing Operations, Per Basic Share		$ (0.18)	$ (0.10)	$ (0.32)	$ (0.36)
Discontinued Operation, Income (Loss) from Discontinued Operation, Net of Tax, Per Basic Share		0	0.01	0	0.01
Basic net income (loss) per share (USD per share)		(0.18)	(0.09)	(0.32)	(0.35)
Income (Loss) from Continuing Operations, Per Diluted Share		(0.18)	(0.10)	(0.32)	(0.36)
Discontinued Operation, Income (Loss) from Discontinued Operation, Net of Tax, Per Diluted Share		0	0.01	0	0.01
Diluted net income (loss) per share (USD per share)		$ (0.18)	$ (0.09)	$ (0.32)	$ (0.35)
Shares used to compute basic net income (loss) per share		37,577	37,103	37,514	37,067
Shares used to compute diluted net income (loss) per share		37,577	37,103	37,514	37,067
Comprehensive income (loss):
Unrealized investment holding gains, net of reclassification adjustments			$ 6	$ 3	$ 10
Foreign currency translation adjustments, net of reclassification adjustments			646	(1,208)	1,240
Total other comprehensive income (loss)		$ (1,602)	652	(1,205)	1,250
Net loss		(6,930)	(3,386)	(12,108)	(12,810)
Comprehensive loss		(8,532)	(2,734)	(13,313)	(11,560)
License and product revenue
Revenue		4,529	9,651	11,943	16,804
Cost of revenue		1,465	2,611	3,220	4,520
Service revenue
Revenue		11,195	11,954	23,431	24,492
Cost of revenue		$ 3,160	$ 3,676	$ 6,541	$ 8,336
[1]	Quarters ended June 30,Components of Revenue2018 2017License Fees4,529 9,651Service Revenue11,195 11,954Net Revenue15,724 21,605 Six Months Ended June 30,Components of Revenue2018 2017License Fees$11,943 $16,804Service Revenue23,431 24,492Net Revenue$35,374 $41,296
[2]	Quarters ended June 30,Components of Cost of Revenue2018 2017License Fees1,465 2,611Service Revenue3,160 3,676Net Revenue Costs4,625 6,287 Six Months Ended June 30,Components of Cost of Revenue2018 2017License Fees$3,220 $4,520Service Revenue6,541 8,336Net Revenue Costs$9,761 $12,856

CONDENSED CONSOLIDATED STATEME5

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS) (Parenthetical) - USD ($) $ in Thousands		3 Months Ended		6 Months Ended
		Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Components of net revenue:
Revenue	[1]	$ 15,724	$ 21,605	$ 35,374	$ 41,296
Components of cost of revenue:
Cost of revenue	[2]	4,625	6,287	9,761	12,856
License and product revenue
Components of net revenue:
Revenue		4,529	9,651	11,943	16,804
Components of cost of revenue:
Cost of revenue		1,465	2,611	3,220	4,520
Service revenue
Components of net revenue:
Revenue		11,195	11,954	23,431	24,492
Components of cost of revenue:
Cost of revenue		$ 3,160	$ 3,676	$ 6,541	$ 8,336
[1]	Quarters ended June 30,Components of Revenue2018 2017License Fees4,529 9,651Service Revenue11,195 11,954Net Revenue15,724 21,605 Six Months Ended June 30,Components of Revenue2018 2017License Fees$11,943 $16,804Service Revenue23,431 24,492Net Revenue$35,374 $41,296
[2]	Quarters ended June 30,Components of Cost of Revenue2018 2017License Fees1,465 2,611Service Revenue3,160 3,676Net Revenue Costs4,625 6,287 Six Months Ended June 30,Components of Cost of Revenue2018 2017License Fees$3,220 $4,520Service Revenue6,541 8,336Net Revenue Costs$9,761 $12,856

CONDENSED CONSOLIDATED STATEME6

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017
Cash flows from operating activities:
Net loss	$ (12,108)	$ (12,810)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization	1,231	1,757
Stock-based compensation	1,614	2,297
Equity in net loss of Napster	0	1,097
Deferred income taxes, net	(12)	(40)
Fair value of warrants granted in 2015 and 2017, net of subsequent mark to market adjustments in 2018 and 2017	50	(417)
Trade accounts receivable	16,960	(4,346)
Prepaid expenses and other assets	(1,633)	667
Accounts payable	(16,601)	(376)
Accrued and other liabilities	(2,231)	(1,775)
Net cash used in operating activities	(12,730)	(13,946)
Cash flows from investing activities:
Purchases of equipment, software, and leasehold improvements	(580)	(417)
Purchases of short-term investments	0	(13,905)
Proceeds from sales and maturities of short-term investments	5,726	32,617
Acquisition, net of cash acquired	(4,192)	0
Advance to Napster	0	(1,500)
Net cash provided by investing activities	954	16,795
Cash flows from financing activities:
Proceeds from issuance of common stock (stock options and stock purchase plan)	114	130
Tax payments from shares withheld upon vesting of restricted stock	(243)	(192)
Net cash used in financing activities	(129)	(62)
Effect of exchange rate changes on cash, cash equivalents and restricted cash	(731)	1,347
Net increase (decrease) in cash, cash equivalents and restricted cash	(12,636)	4,134
Cash, cash equivalents and restricted cash, beginning of period	53,596	36,421
Cash, cash equivalents, and restricted cash end of period	40,960	40,555
Supplemental disclosure of cash flow information:
Cash received from income tax refunds	71	323
Cash paid for income taxes	503	913
Non-cash investing activities:
Increase (decrease) in accrued purchases of equipment, software, and leasehold improvements	(112)	32
Intangible Asset Expenditures Incurred but Not yet Paid	$ 100	$ 0

Description of Business and Sum

Description of Business and Summary of Significant Accounting Policies	6 Months Ended
	Jun. 30, 2018
Accounting Policies [Abstract]
Description of Business and Summary of Significant Accounting Policies	Note 1 Description of Business and Summary of Significant Accounting Policies Description of Business. RealNetworks, Inc. and subsidiaries is a global provider of network-delivered digital media applications and services that make it easy to manage, play and share digital media. The Company also develops and markets software products and services that enable the creation, distribution and consumption of digital media, including audio and video. Inherent in our business are various risks and uncertainties, including a limited history of certain of our product and service offerings. RealNetworks' success will depend on the acceptance of our technology, products and services and the ability to generate related revenue. In this Quarterly Report on Form 10-Q (10-Q or Report), RealNetworks, Inc. and Subsidiaries is referred to as “RealNetworks”, the “Company”, “we”, “us”, or “our”. Basis of Presentation. The unaudited condensed consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries. Intercompany balances and transactions have been eliminated in consolidation. The unaudited condensed consolidated financial statements reflect all adjustments, consisting only of normal, recurring adjustments that, in the opinion of management, are necessary for a fair presentation of the results of operations for the periods presented. Operating results for the quarter and six months ended June 30, 2018 are not necessarily indicative of the results that may be expected for any subsequent period or for the year ending December 31, 2018 . Certain information and disclosures normally included in financial statements prepared in conformity with accounting principles generally accepted in the United States of America (GAAP) have been condensed or omitted pursuant to the rules and regulations of the Securities and Exchange Commission (SEC). These unaudited condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and related notes included in our Annual Report on Form 10-K for the year ended December 31, 2017 (the 10-K). Use of Estimates. The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.

Recent Accounting Pronouncement

Recent Accounting Pronouncements	6 Months Ended
	Jun. 30, 2018
Accounting Changes and Error Corrections [Abstract]
Recent Accounting Pronouncements	Note 2 Recent Accounting Pronouncements Recently adopted accounting pronouncements In May 2014, and subsequently updated and amended in 2015 and 2016, the Financial Accounting Standards Board (FASB) issued new revenue recognition guidance (Topic 606), which replaced most existing revenue recognition guidance in U.S. GAAP. 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. We adopted Topic 606 as of January 1, 2018 using the modified retrospective transition method. Refer to Note 3 Revenue Recognition for further details. In November 2016, the FASB issued guidance on the classification and presentation of changes in restricted cash on the statement of cash flows. We adopted this guidance on January 1, 2018, and retroactively applied the changes to the Statement of Cash Flows for all periods presented. As a result, we no longer classify changes in restricted cash within the investing section of our Statement of Cash flows, and instead include restricted cash with unrestricted cash as a combined total. The impact of the adoption did not have a material impact on the Condensed Consolidated Financial Statements. Recently issued accounting pronouncements not yet adopted In February 2016, the FASB issued new guidance related to the accounting for leases. 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 continue to evaluate the effect that the guidance will have on our consolidated financial statements and related disclosures. We expect that the guidance will result in a material change to our Consolidated Balance Sheet as a result of capitalizing our operating leases. In January 2017, the FASB issued new guidance simplifying the test for goodwill impairment. The new guidance eliminates Step 2 from the goodwill impairment test, instead requiring an entity to recognize a goodwill impairment charge for the amount by which the reporting unit's carrying amount exceeds the reporting unit's fair value. This guidance is effective for interim and annual goodwill impairment tests beginning on December 15, 2019, with early adoption permitted. We will be evaluating the impact of the guidance, but do not currently expect the adoption to have a material impact on our consolidated financial statements and related disclosures.

Revenue Recognition Revenue Rec

Revenue Recognition Revenue Recognition	6 Months Ended
	Jun. 30, 2018
Revenue from Contract with Customer [Abstract]
Revenue Recognition	Note 3 Revenue Recognition Adoption of New Revenue Standard On January 1, 2018 we adopted the new revenue recognition standard by applying the modified retrospective approach to those contracts which were not completed as of January 1, 2018. Results for reporting periods beginning after January 1, 2018 are presented under the new revenue recognition standard, while prior period amounts are not adjusted and continue to be reported under the accounting standards in effect for the prior periods. We recorded a net decrease to opening retained deficit of $1.0 million as of January 1, 2018 due to the cumulative impact of adopting the new revenue recognition standard, with the impact primarily related to licensing of our RealPlayer product and full recognition of non-recurring engineering fees which were previously deferred and amortized over the life of the contract. The net impact to revenues as a result of adopting the new standard was a decrease of $1.1 million for the three months ended June 30, 2018 and an increase of $2.4 million for the six months ended June 30, 2018. Performance Obligations We generate all of our revenue through contracts with customers. Revenue is either recognized over time as the service is provided, or at a point in time when the product is transferred to the customer, depending on the contract type. Our performance obligations typically have an original duration of one year or less. Our software licensing revenue stream generates revenue through the on-premises licensing of our codec technologies and integrated RealTimes platform. We recognize revenue upfront at the point in time when the software is made available to the customer. In cases where a sale or usage-based royalty is promised in exchange for a license of our codec technologies, revenue is recognized as the subsequent usage occurs for the contractual amount owed by the customer for that usage, as is allowed under the licensing of intellectual property section of Topic 606. Software licensing in our Mobile Services segment is invoiced on a monthly basis either based on usage of the respective product, or on a fixed fee basis. Our Consumer Media licensing is invoiced either quarterly or annually based on the usage of the respective product, or on a fixed fee basis. For each of these, the timing of payment generally does not vary significantly from the timing of invoice, however, certain of our long-term Consumer Media licensing contracts have extended payment schedules which may exceed one year. Our subscription services revenue stream allows customers to use hosted software over the respective contract period without taking possession of the technology. The stream is primarily comprised of our intercarrier messaging service, ringback tones, PC-based games subscriptions and our RealPlayer and SuperPass services. Revenues related to subscription service products are recognized ratably over the contract period, or as we have the right to invoice as a practical expedient when that amount corresponds directly with the value to the customer of our performance completed to date. Consumer subscription products are paid in advance, typically on a monthly or quarterly basis. Subscription services offered to businesses are invoiced on a monthly basis, generally based upon the amount of usage for the previous month, and the timing of payment generally does not vary significantly from the timing of invoice. Our product sales revenue stream includes purchases of mobile and wholesale games, as well as our RealPlayer product. Retail purchases are recognized and paid for at the point in time the product is made available to the end user. For games which are sold through third-party application storefronts, we evaluate the transaction for gross or net revenue recognition. As we typically are the primary obligor in our third-party transactions, we recognize revenues gross of any app store fees. We then receive monthly payments from the respective app store for all purchases within the respective month. Other revenues consist primarily of advertising and the distribution of third-party products, which are recognized and paid on a cost per impression or cost per download basis. Disaggregation of Revenue The following table presents our disaggregated revenue by source and segment (in thousands): Quarter Ended June 30, 2018 Six months ended June 30, 2018 Consumer Media Mobile Services Games Consumer Media Mobile Services Games Business Line Software License $ 1,808 $ 469 $ — $ 5,145 $ 1,804 $ — Subscription Services 1,225 6,250 2,689 2,510 13,619 5,382 Product Sales 299 — 1,953 639 — 4,355 Advertising and Other 552 — 479 1,073 — 847 Total $ 3,884 $ 6,719 $ 5,121 9,367 15,423 10,584 The following table presents our disaggregated revenue by sales channel (in thousands): Quarter Ended June 30, 2018 Six months ended June 30, 2018 Consumer Media Mobile Services Games Consumer Media Mobile Services Games Sales Channel Business to Business $ 2,360 $ 6,573 $ 836 $ 6,218 $ 15,103 $ 1,587 Direct to Consumer 1,524 146 4,285 3,149 320 8,997 Total $ 3,884 $ 6,719 $ 5,121 $ 9,367 $ 15,423 $ 10,584 Contract Balances The timing of revenue recognition may differ from the timing of invoicing to our customers. We record accounts receivable when the right to consideration becomes unconditional, except for the passage of time. For certain contracts, payment schedules may exceed one year; for those contracts we recognize a long-term receivable. As of June 30, 2018 , our balance of long-term accounts receivable was $0.3 million , and is included in other long-term assets on our condensed consolidated balance sheets. During the quarter and six months ended June 30, 2018, we recorded no impairments to our contract assets. We record deferred revenue when cash payments are received or due in advance of our completion of the underlying performance obligation. As of June 30, 2018 we had a deferred revenue balance of $2.5 million , a decrease of $1.0 million from December 31, 2017. The decrease is due primarily to our transition to Topic 606, with $0.8 million recorded to retained earnings on January 1, 2018. The decrease is further due to $0.2 million of revenues recognized which were included in the deferred balance at December 31, 2017. Significant Estimates For certain of our contracts, we recognize revenues using the sales- and usage-based exception as defined in the licensing guidance of Topic 606. For these contracts, we typically receive reporting of actual usage a quarter in arrears, and as such, we are required to estimate the current quarter's usage. To make these estimates, we utilize historical reporting information, as well as industry trends and interim reporting to quantify total quarterly usage. As actual usage information is received, we record a true-up in the following quarter to reflect any variance from our estimate. Our true-up on our first quarter estimates recorded in the second quarter of 2018 was not material to our condensed consolidated financial statements. Practical Expedients For those contracts for which we recognize revenue at the amount to which we have the right to invoice for service performed, we do not disclose the value of any unsatisfied performance obligations. We also do not disclose the remaining unsatisfied performance obligations which have an original duration of one year or less. Additionally, we immediately expense sales commissions when incurred as the amortization period would have been less than one year. These costs are recorded within sales and marketing expense.

Stock-Based Compensation

Stock-Based Compensation	6 Months Ended
	Jun. 30, 2018
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Stock-Based Compensation	Note 4 Stock-Based Compensation Total stock-based compensation expense recognized in our unaudited condensed consolidated statements of operations and comprehensive income (loss) includes amounts related to stock options, restricted stock, and employee stock purchase plans and was as follows (in thousands): Quarter Ended Six Months Ended 2018 2017 2018 2017 Total stock-based compensation expense $ 457 $ 863 $ 1,614 $ 2,297 The fair value of options granted determined using the Black-Scholes model used the following weighted-average assumptions: Quarter Ended Six Months Ended 2018 2017 2018 2017 Expected dividend yield 0 % 0 % 0 % 0 % Risk-free interest rate 2.72 % 1.62 % 2.59 % 1.76 % Expected life (years) 3.8 3.7 4.0 4.4 Volatility 35 % 34 % 35 % 35 % The total stock-based compensation amounts for 2018 and 2017 disclosed above are recorded in their respective line items within operating expenses in the unaudited condensed consolidated statements of operations and comprehensive income (loss). Included in the expense for the six months ended June 30, 2018 and 2017 was stock compensation expense recorded in the first quarter of 2018 and 2017 related to our 2017 and 2016 incentive bonuses paid in fully vested restricted stock units, which were authorized and granted in the first quarter of 2018 and 2017, respectively. As of June 30, 2018 , $2.9 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 3.8 years .

Rhapsody Joint Venture

Rhapsody Joint Venture	6 Months Ended
	Jun. 30, 2018
Equity Method Investments and Joint Ventures [Abstract]
Rhapsody Joint Venture	Note 5 Napster Joint Venture As of June 30, 2018 we owned approximately 42% of the issued and outstanding stock of Rhapsody International Inc., doing business as Napster, and account for our investment using the equity method of accounting. Rhapsody America LLC 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 originally branded as Rhapsody. The service was re-branded in 2016 as Napster. In this Note, we refer to the business as Napster, although the legal entity in which we hold our investment is Rhapsody International, Inc. Following certain restructuring transactions effective March 31, 2010, we began accounting for our investment 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 Napster of $0.0 million for the quarter and six months ended June 30, 2018 ; and $0.3 million and $1.1 million for the quarter and six months ended June 30, 2017. Because of the $10.0 million liquidation preference on the preferred stock we hold in Napster, under the equity method of accounting we did not record any share of Napster losses that would reduce our carrying value of Napster, which is impacted by Napster equity transactions, below $10.0 million , until Napster's book value was reduced below $10.0 million . This occurred in the first quarter of 2015. As of June 30, 2018 , the carrying value of our Napster equity investment was zero , as we did not have any further commitment to provide future support to Napster, with the exception of the guaranty discussed below. Unless we commit to provide future financial support to Napster, we do not record any further share of Napster losses that would reduce our carrying value of Napster below zero; in accordance with GAAP, we currently track those suspended losses outside of our financial statements. In December 2016, RealNetworks entered into an agreement to loan up to $5 million to Napster for general operating purposes, as did Napster's other 42% owner. Each entity fully funded its loan, providing $3.5 million each in December 2016 and the remaining $1.5 million each in January 2017. These loans are subordinate to senior creditors, and bear an interest rate of 10% per annum, which is added to the outstanding principal balance. At the time of signing the agreement we recognized previously suspended Napster losses, and, consequently, we did not record a receivable related to this loan. As discussed in Note 4 to our 2017 Form 10-K, during November 2017, Napster entered into an amendment to its revolving credit facility. In conjunction with the amendment, both RealNetworks and Napster's other 42% owner entered into an arrangement to guarantee up to $2.75 million each of Napster's outstanding indebtedness on the credit facility. As a result of this guaranty, in December 2017 we recognized previously suspended Napster losses up to the full $2.75 million guaranty in our consolidated statement of operations. As of the date of this filing, RealNetworks has not been required to pay any amounts under the guaranty, and the amount is reflected on our condensed consolidated balance sheets as Commitment to Napster. Summarized financial information for Napster, which represents 100% of its financial information, is as follows (in thousands): Quarter Ended Six Months Ended 2018 2017 2018 2017 Net revenue $ 36,239 $ 44,136 $ 76,529 $ 91,598 Gross profit 9,383 6,099 18,661 12,682 Operating income (loss) 3,895 (4,760 ) 10,310 (9,871 ) Net income (loss) 2,134 (7,693 ) 6,582 (13,333 )

Fair Value Measurements

Fair Value Measurements	6 Months Ended
	Jun. 30, 2018
Fair Value Disclosures [Abstract]
Fair Value Measurements	Note 6 Fair Value Measurements Items Measured at Fair Value on a Recurring Basis The following table presents information about our financial assets that have been measured at fair value on a recurring basis as of June 30, 2018 and December 31, 2017 , and indicates the fair value hierarchy of the valuation inputs utilized to determine such fair value (in thousands). Fair Value Measurements as of Amortized Cost as of June 30, 2018 June 30, 2018 Level 1 Level 2 Level 3 Total Cash and cash equivalents: Cash $ 21,538 $ — $ — $ 21,538 $ 21,538 Money market funds 17,542 — — 17,542 17,542 Total cash and cash equivalents 39,080 — — 39,080 39,080 Short-term investments: Corporate notes and bonds — 3,053 — 3,053 3,049 Total short-term investments — 3,053 — 3,053 3,049 Restricted cash equivalents — 1,880 — 1,880 1,880 Warrants issued by Napster (included in Other assets) — — 939 939 — Total $ 39,080 $ 4,933 $ 939 $ 44,952 $ 44,009 Fair Value Measurements as of Amortized Cost as of December 31, 2017 December 31, 2017 Level 1 Level 2 Level 3 Total Cash and cash equivalents: Cash $ 31,065 $ — $ — $ 31,065 $ 31,065 Money market funds 20,131 — — 20,131 20,131 Total cash and cash equivalents 51,196 — — 51,196 51,196 Short-term investments: Corporate notes and bonds — 8,779 — 8,779 8,779 Total short-term investments — 8,779 — 8,779 8,779 Restricted cash equivalents — 2,400 — 2,400 2,400 Warrants issued by Napster (included in Other assets) — — 989 989 — Total $ 51,196 $ 11,179 $ 989 $ 63,364 $ 62,375 Restricted cash equivalents as of June 30, 2018 and December 31, 2017 relates to cash pledged as collateral against letters of credit in connection with lease agreements. Realized gains or losses on sales of short-term investment securities for the quarters and six months ended June 30, 2018 and 2017 were not significant. Gross unrealized gains and gross unrealized losses on short-term investment securities as of June 30, 2018 and December 31, 2017 were also not significant. Investments with remaining contractual maturities of five years or less are classified as short-term because the investments are marketable and highly liquid, and we have the ability to utilize them for current operations. Contractual maturities of short-term investments as of June 30, 2018 (in thousands): Estimated Fair Value Within one year $ 3,053 Between one year and five years — Total short-term investments $ 3,053 In February 2015, Napster issued warrants to purchase Napster common shares to both RealNetworks and Napster's other 42% owner. The warrants were issued as compensation for past services provided by RealNetworks and the other 42% owner, and both warrants covered the same number of underlying shares, with a 10 year contractual term. The exercise price of the warrants was equal to the fair value of the underlying shares on the issuance date, and we used the Black-Scholes option-pricing model to calculate the fair value of the warrant, using an expected term of 5 years and expected volatility of 55% . On the date of issuance, we recognized and recorded the $1.2 million fair value of the warrant issued to RealNetworks within Other assets in the unaudited condensed consolidated balance sheets, and as an expense reduction within General and administrative expense in the unaudited condensed consolidated statements of operations. The warrants are free-standing derivatives and as such their fair value is determined each quarter using updated inputs in the Black-Scholes option-pricing model. At December 31, 2017 due to the management change and strategic shift undertaken by Napster, we determined that a change to the expected term was necessary. As a result, we extended the expected term by 3.25 years , resulting in a total expected term for the warrant of 8.25 years . During the six months ended June 30, 2018 , the decrease in the fair value of the warrants was insignificant. In February 2017, Napster issued additional warrants to purchase Napster common shares to both RealNetworks and Napster's other 42% owner. Consistent with the warrants issued in 2015, the 2017 warrants were issued as compensation for past services provided by RealNetworks and the other 42% owner, and both warrants covered the same number of underlying shares, with a 10 year contractual term. The exercise price of the warrants exceeded 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% , resulting in a recognized fair value of $0.5 million in Other assets in the unaudited condensed consolidated balance sheets, and as an expense reduction within general and administrative expense in the unaudited condensed consolidated statements of operations. At December 31, 2017, due to the management change and strategic shift undertaken by Napster, we determined that a change to the expected term was necessary. As a result, we extended the expected term by 1 year, resulting in a total expected term for the warrant of 6 years . During the six months ended June 30, 2018 , the decrease in the fair value of the warrants was insignificant. Items Measured at Fair Value on a Non-recurring Basis Certain of our assets and liabilities are measured at estimated fair value on a non-recurring basis, using Level 3 inputs. These instruments are subject to fair value adjustments only in certain circumstances (for example, when there is evidence of impairment). During the six months ended June 30, 2018 and 2017 , we did not record any impairments on those assets required to be measured at fair value on a non-recurring basis. 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.

Other Intangible Assets

Other Intangible Assets	6 Months Ended
	Jun. 30, 2018
Goodwill and Intangible Assets Disclosure [Abstract]
Other Intangible Assets	Note 7 Other Intangible Assets Other intangible assets (in thousands): June 30, 2018 December 31, 2017 Gross Amount Accumulated Amortization Net Gross Amount Accumulated Amortization Net Amortizing intangible assets: Customer relationships $ 31,166 $ 31,025 $ 141 $ 32,286 $ 31,997 $ 289 Developed technology 24,598 24,598 — 25,177 25,177 — Patents, trademarks and tradenames 3,792 3,792 — 3,932 3,896 36 Service contracts 5,548 5,474 74 5,576 5,576 — Total $ 65,104 $ 64,889 $ 215 $ 66,971 $ 66,646 $ 325 In conjunction with our acquisition of a Netherlands-based game development studio in the second quarter of 2018, we recorded $0.1 million in intangibles. Refer to Note 8 Goodwill for further details about the acquisition. No impairments of other intangible assets were recognized in either of the six months ended June 30, 2018 or 2017 .

Goodwill

Goodwill	6 Months Ended
	Jun. 30, 2018
Goodwill and Intangible Assets Disclosure [Abstract]
Goodwill	Note 8 Goodwill Changes in goodwill (in thousands): Balance, December 31, 2017 $ 13,060 Increases due to current year acquisitions 4,367 Effects of foreign currency translation (307 ) Balance, June 30, 2018 $ 17,120 On April 16, 2018, in order to acquire a full workforce, we purchased 100% of the shares of a small, privately-held Netherlands-based game development studio for net cash consideration of $4.2 million . All tangible and intangible assets and liabilities recognized are reported within the Games segment. As a result of our preliminary purchase price allocation, we recorded $0.1 million of identifiable intangible assets relating to an existing customer contract. We also recorded goodwill of $4.4 million , representing the intangible assets that do not qualify for separate recognition for accounting purposes, primarily related to the assembled workforce and expected synergies in development of our Original Stories titles. The goodwill is not deductible for income tax purposes. We did not recognize significant revenue or loss before income taxes from this acquired business from the date of acquisition through June 30, 2018. Goodwill by segment (in thousands): June 30, Consumer Media $ 580 Mobile Services 2,106 Games 14,434 Total goodwill $ 17,120 No impairment of goodwill was recognized in either of the six months ended June 30, 2018 or in 2017 .

Accrued and Other Current Liabi

Accrued and Other Current Liabilities	6 Months Ended
	Jun. 30, 2018
Payables and Accruals [Abstract]
Accrued and Other Current Liabilities	Note 9 Accrued and Other Current Liabilities Accrued and other current liabilities (in thousands): June 30, 2018 December 31, 2017 Royalties and other fulfillment costs $ 3,226 $ 2,965 Employee compensation, commissions and benefits 3,856 4,384 Sales, VAT and other taxes payable 1,495 1,782 Other 3,684 3,234 Total accrued and other current liabilities $ 12,261 $ 12,365

Restructuring Charges

Restructuring Charges	6 Months Ended
	Jun. 30, 2018
Restructuring and Related Activities [Abstract]
Restructuring Charges	Note 10 Restructuring Charges Restructuring and other charges in 2018 and 2017 consist of costs associated with the ongoing reorganization of our business operations and our ongoing expense re-alignment efforts. The expense amounts in both years relate primarily to severance costs due to workforce reductions. Restructuring charges are as follows (in thousands): Employee Separation Costs Costs incurred and charged to expense for the six months ended June 30, 2018 $ 688 Costs incurred and charged to expense for the six months ended June 30, 2017 $ 1,714 Changes to the accrued restructuring liability (which is included in Accrued and other current liabilities) for 2018 (in thousands) are as follows: Employee Separation Costs Accrued liability at December 31, 2017 $ 244 Costs incurred and charged to expense for the six months ended June 30, 2018 688 Cash payments (638 ) Accrued liability at June 30, 2018 $ 294

Lease Exit and Related Charges

Lease Exit and Related Charges	6 Months Ended
	Jun. 30, 2018
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, lease exit and related charges have been recognized representing rent and contractual operating expenses over the remaining life of the leases, including estimates of sublease income expected to be received. In the first quarter of 2018, we renegotiated the lease for our Seattle headquarters, reducing our total leased space by 15% . Consequently, we recorded a reduction to our lease loss accrual to reflect our reduced future obligations. This reduction has also been recorded as a benefit of $0.3 million in our condensed consolidated statement of operations for the six months ended June 30, 2018 . We continue to regularly evaluate the market for office space. If the market for such space changes further in future periods, we may have to revise our estimates which may result in future adjustments to expense for excess office facilities. Changes to accrued lease exit and related charges (which is included in Accrued and other current liabilities) for 2018 (in thousands) are as follows: Accrued loss at December 31, 2017 $ 2,058 Additions and adjustments to the lease loss accrual, including estimated sublease income (454 ) Less amounts paid, net of sublease amounts (433 ) Accrued loss at June 30, 2018 1,171 Less current portion (included in Accrued and other current liabilities) (181 ) Accrued loss, non-current portion (included in Other long term liabilities) $ 990

Shareholders_ Equity

Shareholders’ Equity	6 Months Ended
	Jun. 30, 2018
Equity [Abstract]
Shareholders’ Equity	Note 12 Shareholders’ Equity Accumulated Other Comprehensive Income (Loss) Changes in components of accumulated other comprehensive income (loss) (in thousands): Quarter Ended Six Months Ended 2018 2017 2018 2017 Investments Accumulated other comprehensive income (loss), beginning of period $ 3 $ (2 ) $ 2 $ (6 ) Unrealized gains, net of tax effects of $1, $3, $1 and $5 2 6 3 10 Net current period other comprehensive income 2 6 3 10 Accumulated other comprehensive income balance, end of period $ 5 $ 4 $ 5 $ 4 Foreign currency translation Accumulated other comprehensive loss, beginning of period $ (59,153 ) $ (61,045 ) $ (59,549 ) $ (61,639 ) Translation adjustments (1,604 ) 646 (1,208 ) 1,240 Net current period other comprehensive income (loss) (1,604 ) 646 (1,208 ) 1,240 Accumulated other comprehensive loss balance, end of period $ (60,757 ) $ (60,399 ) $ (60,757 ) $ (60,399 ) Total accumulated other comprehensive loss, end of period $ (60,752 ) $ (60,395 ) $ (60,752 ) $ (60,395 )

Income Taxes

Income Taxes	6 Months Ended
	Jun. 30, 2018
Income Tax Disclosure [Abstract]
Income Taxes	Note 13 Income Taxes As of June 30, 2018 , there have been no material changes to RealNetworks’ uncertain tax positions disclosures as provided in Note 14 of the 2017 10-K. We do not anticipate that the total amount of unrecognized tax benefits will significantly change within the next twelve months. We file numerous consolidated and separate income tax returns in the U.S. including federal, state and local, as well as foreign jurisdictions. With few exceptions, we are no longer subject to U.S. federal income tax examinations for tax years before 2013 or state, local, or foreign income tax examinations for years before 1993. We are currently under audit by various states and foreign jurisdictions for certain tax years subsequent to 1993.

Earnings (Loss) Per Share

Earnings (Loss) Per Share	6 Months Ended
	Jun. 30, 2018
Earnings Per Share [Abstract]
Earnings (Loss) Per Share	Note 14 Loss Per Share Basic net loss per share (EPS) is computed by dividing net loss by the weighted average number of common shares outstanding during the period. Diluted EPS is computed by dividing net loss by the weighted average number of common and dilutive potential common shares outstanding during the period. Basic and diluted EPS (in thousands, except per share amounts): Quarter Ended Six Months Ended 2018 2017 2018 2017 Net loss from continuing operations $ (6,930 ) $ (3,779 ) $ (12,108 ) $ (13,329 ) Weighted average common shares outstanding used to compute basic EPS 37,577 37,103 37,514 37,067 Dilutive effect of stock based awards — — — — Weighted average common shares outstanding used to compute diluted EPS 37,577 37,103 37,514 37,067 Basic EPS from continuing operations $ (0.18 ) $ (0.10 ) $ (0.32 ) $ (0.36 ) Diluted EPS from continuing operations $ (0.18 ) $ (0.10 ) $ (0.32 ) $ (0.36 ) During the quarter and six months ended June 30, 2018 , 5.9 million and 6.0 million shares of common stock, respectively, of potentially issuable shares from stock awards were excluded from the calculation of diluted EPS because of their antidilutive effect. During both the quarter and six months ended June 30, 2017, 5.2 million shares of common stock of potentially issuable shares from stock awards were excluded from the calculation of diluted EPS because of their antidilutive effect.

Discontinued Operations Discont

Discontinued Operations Discontinued Operations	6 Months Ended
	Jun. 30, 2018
Discontinued Operations and Disposal Groups [Abstract]
Discontinued Operations	Note 15 Discontinued Operations On December 31, 2017, our contract with our low-margin music on demand customer LOEN expired. The activity for this contract represented our only revenue source relating to music on demand services, and we did not renew the sole contract for this service, resulting in the abandonment of the related business. As the exit of the music on demand business represented a strategic shift, and the amounts were financially significant to our consolidated results, at December 31, 2017 we determined this business should be reported as a discontinued operation, and treated it as such beginning in our fourth quarter of 2017. The following table summarizes the results of operations, which were recorded in our Mobile Services segment, relating to the discontinued operation (in thousands): Quarter Ended Six Months Ended 2018 2017 2018 2017 Net revenue $ — $ 11,507 $ — $ 22,392 Cost of revenue — 11,003 — 21,727 Gross profit — 504 — 665 Income taxes — 111 — 146 Income from discontinued operations, net of tax $ — $ 393 $ — $ 519 The following table summarizes the remaining carrying amounts of major classes of assets and liabilities of the discontinued operation (in thousands). These assets and liabilities relate to final settlements of prior year activity between various parties. These balances were fully settled prior to the end of the second quarter of 2018. June 30, December 31, Trade accounts receivable, net $ — $ 17,456 Total current assets of discontinued operations — 17,456 Accounts payable $ — $ 15,836 Accrued and other current liabilities — 1,271 Total current liabilities of discontinued operations $ — $ 17,107 The cash flows related to the discontinued operation have not been segregated, and are included in the Consolidated Statements of Cash Flows. For all periods presented, depreciation and amortization, capital expenditures and significant operating non-cash items from the discontinued operation were not material.

Commitments and Contingencies

Commitments and Contingencies	6 Months Ended
	Jun. 30, 2018
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	Note 16 Commitments and Contingencies From time to time we are and may be 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. Although we believe that resolving such claims, individually or in aggregate, will not have a material adverse impact on our business or financial condition, these matters are subject to inherent uncertainties. 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	6 Months Ended
	Jun. 30, 2018
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	6 Months Ended
	Jun. 30, 2018
Segment Reporting [Abstract]
Segment Information	Note 18 Segment Information We manage our business and report revenue and operating income (loss) in three segments: (1) Consumer Media, which includes licensing of our codec technology and our PC-based RealPlayer products, including RealPlayer Plus and related products; (2) Mobile Services, which includes our subscription services and our integrated RealTimes platform which is sold to mobile carriers; and (3) Games, which includes all our games-related businesses, including sales of mobile games, sales of games licenses, 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 our 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 charges, lease exit and related charges, as well as stock-based compensation expense. RealNetworks reports three reportable segments based on factors such as how we manage our operations and how our Chief Operating Decision Maker (CODM) reviews results. The CODM reviews financial information presented on both a consolidated basis and on a business segment basis. The accounting policies used to derive segment results are the same as those described in Note 1, Description of Business and Summary of Significant Accounting Policies, in the 10-K. Segment results for the quarters and six months ended June 30, 2018 and 2017 (in thousands): Consumer Media Quarter Ended Six Months Ended 2018 2017 2018 2017 Revenue $ 3,884 $ 6,951 $ 9,367 $ 12,620 Cost of revenue 1,028 1,159 2,021 2,564 Gross profit 2,856 5,792 7,346 10,056 Operating expenses 3,439 3,730 7,357 7,740 Operating income (loss) $ (583 ) $ 2,062 $ (11 ) $ 2,316 Mobile Services Quarter Ended Six Months Ended 2018 2017 2018 2017 Revenue $ 6,719 $ 7,720 $ 15,423 $ 15,919 Cost of revenue 2,134 2,426 4,450 5,616 Gross profit 4,585 5,294 10,973 10,303 Operating expenses 6,969 6,705 14,335 14,824 Operating loss $ (2,384 ) $ (1,411 ) $ (3,362 ) $ (4,521 ) Games Quarter Ended Six Months Ended 2018 2017 2018 2017 Revenue $ 5,121 $ 6,934 $ 10,584 $ 12,757 Cost of revenue 1,456 2,679 3,273 4,616 Gross profit 3,665 4,255 7,311 8,141 Operating expenses 5,095 5,090 10,012 10,037 Operating loss $ (1,430 ) $ (835 ) $ (2,701 ) $ (1,896 ) Corporate Quarter Ended Six Months Ended 2018 2017 2018 2017 Cost of revenue $ 7 $ 23 $ 17 $ 60 Operating expenses 2,429 2,959 5,696 7,254 Operating loss $ (2,436 ) $ (2,982 ) $ (5,713 ) $ (7,314 ) Our customers consist primarily of consumers and corporations located in the U.S., Europe, and various foreign countries (Rest of the World). Revenue by geographic region (in thousands): Quarter Ended Six Months Ended 2018 2017 2018 2017 United States $ 7,646 $ 10,889 $ 19,080 $ 20,629 Europe 3,010 3,205 6,035 6,399 Rest of the World 5,068 7,511 10,259 14,268 Total net revenue $ 15,724 $ 21,605 $ 35,374 $ 41,296 Long-lived assets (which consist of primarily of goodwill, but also includes equipment, software, leasehold improvements, and other intangible assets) by geographic region (in thousands) are as follows: June 30, December 31, United States $ 11,915 $ 12,236 Europe 7,287 3,437 Rest of the World 1,354 1,572 Total long-lived assets $ 20,556 $ 17,245

Related Party Transactions

Related Party Transactions	6 Months Ended
	Jun. 30, 2018
Related Party Transactions [Abstract]
Related Party Transactions	Note 19 Related Party Transactions See Note 5 , Napster Joint Venture , and Note 6 , Fair Value Measurements , for details on transactions involving Napster.

Description of Business and S26

Description of Business and Summary of Significant Accounting Policies (Policies)	6 Months Ended
	Jun. 30, 2018
Accounting Policies [Abstract]
Description of Business	Description of Business. RealNetworks, Inc. and subsidiaries is a global provider of network-delivered digital media applications and services that make it easy to manage, play and share digital media. The Company also develops and markets software products and services that enable the creation, distribution and consumption of digital media, including audio and video. Inherent in our business are various risks and uncertainties, including a limited history of certain of our product and service offerings. RealNetworks' success will depend on the acceptance of our technology, products and services and the ability to generate related revenue. In this Quarterly Report on Form 10-Q (10-Q or Report), RealNetworks, Inc. and Subsidiaries is referred to as “RealNetworks”, the “Company”, “we”, “us”, or “our”.
Basis of Presentation	Basis of Presentation. The unaudited condensed consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries. Intercompany balances and transactions have been eliminated in consolidation. The unaudited condensed consolidated financial statements reflect all adjustments, consisting only of normal, recurring adjustments that, in the opinion of management, are necessary for a fair presentation of the results of operations for the periods presented. Operating results for the quarter and six months ended June 30, 2018 are not necessarily indicative of the results that may be expected for any subsequent period or for the year ending December 31, 2018 . Certain information and disclosures normally included in financial statements prepared in conformity with accounting principles generally accepted in the United States of America (GAAP) have been condensed or omitted pursuant to the rules and regulations of the Securities and Exchange Commission (SEC). These unaudited condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and related notes included in our Annual Report on Form 10-K for the year ended December 31, 2017 (the 10-K).
Use of Estimates	Use of Estimates. The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.
Segments	We manage our business and report revenue and operating income (loss) in three segments: (1) Consumer Media, which includes licensing of our codec technology and our PC-based RealPlayer products, including RealPlayer Plus and related products; (2) Mobile Services, which includes our subscription services and our integrated RealTimes platform which is sold to mobile carriers; and (3) Games, which includes all our games-related businesses, including sales of mobile games, sales of games licenses, 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 our 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 charges, lease exit and related charges, as well as stock-based compensation expense. RealNetworks reports three reportable segments based on factors such as how we manage our operations and how our Chief Operating Decision Maker (CODM) reviews results. The CODM reviews financial information presented on both a consolidated basis and on a business segment basis. The accounting policies used to derive segment results are the same as those described in Note 1, Description of Business and Summary of Significant Accounting Policies, in the 10-K.

Revenue Recognition Revenue R27

Revenue Recognition Revenue Recognition (Tables)	6 Months Ended
	Jun. 30, 2018
Revenue from Contract with Customer [Abstract]
Schedule of Segment Reporting Information, by Segment	Disaggregation of Revenue The following table presents our disaggregated revenue by source and segment (in thousands): Quarter Ended June 30, 2018 Six months ended June 30, 2018 Consumer Media Mobile Services Games Consumer Media Mobile Services Games Business Line Software License $ 1,808 $ 469 $ — $ 5,145 $ 1,804 $ — Subscription Services 1,225 6,250 2,689 2,510 13,619 5,382 Product Sales 299 — 1,953 639 — 4,355 Advertising and Other 552 — 479 1,073 — 847 Total $ 3,884 $ 6,719 $ 5,121 9,367 15,423 10,584 The following table presents our disaggregated revenue by sales channel (in thousands): Quarter Ended June 30, 2018 Six months ended June 30, 2018 Consumer Media Mobile Services Games Consumer Media Mobile Services Games Sales Channel Business to Business $ 2,360 $ 6,573 $ 836 $ 6,218 $ 15,103 $ 1,587 Direct to Consumer 1,524 146 4,285 3,149 320 8,997 Total $ 3,884 $ 6,719 $ 5,121 $ 9,367 $ 15,423 $ 10,584 Games Quarter Ended Six Months Ended 2018 2017 2018 2017 Revenue $ 5,121 $ 6,934 $ 10,584 $ 12,757 Cost of revenue 1,456 2,679 3,273 4,616 Gross profit 3,665 4,255 7,311 8,141 Operating expenses 5,095 5,090 10,012 10,037 Operating loss $ (1,430 ) $ (835 ) $ (2,701 ) $ (1,896 ) Mobile Services Quarter Ended Six Months Ended 2018 2017 2018 2017 Revenue $ 6,719 $ 7,720 $ 15,423 $ 15,919 Cost of revenue 2,134 2,426 4,450 5,616 Gross profit 4,585 5,294 10,973 10,303 Operating expenses 6,969 6,705 14,335 14,824 Operating loss $ (2,384 ) $ (1,411 ) $ (3,362 ) $ (4,521 ) Corporate Quarter Ended Six Months Ended 2018 2017 2018 2017 Cost of revenue $ 7 $ 23 $ 17 $ 60 Operating expenses 2,429 2,959 5,696 7,254 Operating loss $ (2,436 ) $ (2,982 ) $ (5,713 ) $ (7,314 ) Consumer Media Quarter Ended Six Months Ended 2018 2017 2018 2017 Revenue $ 3,884 $ 6,951 $ 9,367 $ 12,620 Cost of revenue 1,028 1,159 2,021 2,564 Gross profit 2,856 5,792 7,346 10,056 Operating expenses 3,439 3,730 7,357 7,740 Operating income (loss) $ (583 ) $ 2,062 $ (11 ) $ 2,316

Stock-Based Compensation (Table

Stock-Based Compensation (Tables)	6 Months Ended
	Jun. 30, 2018
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Stock-Based Compensation Expense	Total stock-based compensation expense recognized in our unaudited condensed consolidated statements of operations and comprehensive income (loss) includes amounts related to stock options, restricted stock, and employee stock purchase plans and was as follows (in thousands): Quarter Ended Six Months Ended 2018 2017 2018 2017 Total stock-based compensation expense $ 457 $ 863 $ 1,614 $ 2,297
Weighted-Average Assumptions Used to Determine Fair Value of Options Granted	The fair value of options granted determined using the Black-Scholes model used the following weighted-average assumptions: Quarter Ended Six Months Ended 2018 2017 2018 2017 Expected dividend yield 0 % 0 % 0 % 0 % Risk-free interest rate 2.72 % 1.62 % 2.59 % 1.76 % Expected life (years) 3.8 3.7 4.0 4.4 Volatility 35 % 34 % 35 % 35 %

Rhapsody Joint Venture (Tables)

Rhapsody Joint Venture (Tables)	6 Months Ended
	Jun. 30, 2018
Equity Method Investments and Joint Ventures [Abstract]
Summarized Financial Operating Information for Rhapsody	Summarized financial information for Napster, which represents 100% of its financial information, is as follows (in thousands): Quarter Ended Six Months Ended 2018 2017 2018 2017 Net revenue $ 36,239 $ 44,136 $ 76,529 $ 91,598 Gross profit 9,383 6,099 18,661 12,682 Operating income (loss) 3,895 (4,760 ) 10,310 (9,871 ) Net income (loss) 2,134 (7,693 ) 6,582 (13,333 )

Fair Value Measurements (Tables

Fair Value Measurements (Tables)	6 Months Ended
	Jun. 30, 2018
Fair Value Disclosures [Abstract]
Financial Assets Measured at Fair Value on a Recurring Basis	The following table presents information about our financial assets that have been measured at fair value on a recurring basis as of June 30, 2018 and December 31, 2017 , and indicates the fair value hierarchy of the valuation inputs utilized to determine such fair value (in thousands). Fair Value Measurements as of Amortized Cost as of June 30, 2018 June 30, 2018 Level 1 Level 2 Level 3 Total Cash and cash equivalents: Cash $ 21,538 $ — $ — $ 21,538 $ 21,538 Money market funds 17,542 — — 17,542 17,542 Total cash and cash equivalents 39,080 — — 39,080 39,080 Short-term investments: Corporate notes and bonds — 3,053 — 3,053 3,049 Total short-term investments — 3,053 — 3,053 3,049 Restricted cash equivalents — 1,880 — 1,880 1,880 Warrants issued by Napster (included in Other assets) — — 939 939 — Total $ 39,080 $ 4,933 $ 939 $ 44,952 $ 44,009 Fair Value Measurements as of Amortized Cost as of December 31, 2017 December 31, 2017 Level 1 Level 2 Level 3 Total Cash and cash equivalents: Cash $ 31,065 $ — $ — $ 31,065 $ 31,065 Money market funds 20,131 — — 20,131 20,131 Total cash and cash equivalents 51,196 — — 51,196 51,196 Short-term investments: Corporate notes and bonds — 8,779 — 8,779 8,779 Total short-term investments — 8,779 — 8,779 8,779 Restricted cash equivalents — 2,400 — 2,400 2,400 Warrants issued by Napster (included in Other assets) — — 989 989 — Total $ 51,196 $ 11,179 $ 989 $ 63,364 $ 62,375
Schedule of Contractual Maturity Date	Contractual maturities of short-term investments as of June 30, 2018 (in thousands): Estimated Fair Value Within one year $ 3,053 Between one year and five years — Total short-term investments $ 3,053

Other Intangible Assets (Tables

Other Intangible Assets (Tables)	6 Months Ended
	Jun. 30, 2018
Goodwill and Intangible Assets Disclosure [Abstract]
Other Intangible Assets	Other intangible assets (in thousands): June 30, 2018 December 31, 2017 Gross Amount Accumulated Amortization Net Gross Amount Accumulated Amortization Net Amortizing intangible assets: Customer relationships $ 31,166 $ 31,025 $ 141 $ 32,286 $ 31,997 $ 289 Developed technology 24,598 24,598 — 25,177 25,177 — Patents, trademarks and tradenames 3,792 3,792 — 3,932 3,896 36 Service contracts 5,548 5,474 74 5,576 5,576 — Total $ 65,104 $ 64,889 $ 215 $ 66,971 $ 66,646 $ 325

Goodwill (Tables)

Goodwill (Tables)	6 Months Ended
	Jun. 30, 2018
Goodwill and Intangible Assets Disclosure [Abstract]
Changes in Goodwill	Changes in goodwill (in thousands): Balance, December 31, 2017 $ 13,060 Increases due to current year acquisitions 4,367 Effects of foreign currency translation (307 ) Balance, June 30, 2018 $ 17,120
Goodwill Assigned by Segments	Goodwill by segment (in thousands): June 30, Consumer Media $ 580 Mobile Services 2,106 Games 14,434 Total goodwill $ 17,120

Accrued and Other Current Lia33

Accrued and Other Current Liabilities (Tables)	6 Months Ended
	Jun. 30, 2018
Payables and Accruals [Abstract]
Accrued and Other Liabilities	Accrued and other current liabilities (in thousands): June 30, 2018 December 31, 2017 Royalties and other fulfillment costs $ 3,226 $ 2,965 Employee compensation, commissions and benefits 3,856 4,384 Sales, VAT and other taxes payable 1,495 1,782 Other 3,684 3,234 Total accrued and other current liabilities $ 12,261 $ 12,365

Restructuring Charges (Tables)

Restructuring Charges (Tables)	6 Months Ended
	Jun. 30, 2018
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 six months ended June 30, 2018 $ 688 Costs incurred and charged to expense for the six months ended June 30, 2017 $ 1,714 Changes to the accrued restructuring liability (which is included in Accrued and other current liabilities) for 2018 (in thousands) are as follows: Employee Separation Costs Accrued liability at December 31, 2017 $ 244 Costs incurred and charged to expense for the six months ended June 30, 2018 688 Cash payments (638 ) Accrued liability at June 30, 2018 $ 294

Lease Exit and Related Charges

Lease Exit and Related Charges (Tables)	6 Months Ended
	Jun. 30, 2018
Disclosure Changes To Accrued Loss On Excess Office Facilities [Abstract]
Changes to Accrued Loss on Excess Office Facilities	Changes to accrued lease exit and related charges (which is included in Accrued and other current liabilities) for 2018 (in thousands) are as follows: Accrued loss at December 31, 2017 $ 2,058 Additions and adjustments to the lease loss accrual, including estimated sublease income (454 ) Less amounts paid, net of sublease amounts (433 ) Accrued loss at June 30, 2018 1,171 Less current portion (included in Accrued and other current liabilities) (181 ) Accrued loss, non-current portion (included in Other long term liabilities) $ 990

Shareholders_ Equity (Tables)

Shareholders’ Equity (Tables)	6 Months Ended
	Jun. 30, 2018
Equity [Abstract]
Schedule of Accumulated Other Comprehensive Income (Loss)	Changes in components of accumulated other comprehensive income (loss) (in thousands): Quarter Ended Six Months Ended 2018 2017 2018 2017 Investments Accumulated other comprehensive income (loss), beginning of period $ 3 $ (2 ) $ 2 $ (6 ) Unrealized gains, net of tax effects of $1, $3, $1 and $5 2 6 3 10 Net current period other comprehensive income 2 6 3 10 Accumulated other comprehensive income balance, end of period $ 5 $ 4 $ 5 $ 4 Foreign currency translation Accumulated other comprehensive loss, beginning of period $ (59,153 ) $ (61,045 ) $ (59,549 ) $ (61,639 ) Translation adjustments (1,604 ) 646 (1,208 ) 1,240 Net current period other comprehensive income (loss) (1,604 ) 646 (1,208 ) 1,240 Accumulated other comprehensive loss balance, end of period $ (60,757 ) $ (60,399 ) $ (60,757 ) $ (60,399 ) Total accumulated other comprehensive loss, end of period $ (60,752 ) $ (60,395 ) $ (60,752 ) $ (60,395 )

Earnings (Loss) Per Share (Tabl

Earnings (Loss) Per Share (Tables)	6 Months Ended
	Jun. 30, 2018
Earnings Per Share [Abstract]
Calculation of Basic and Diluted Earnings Per Share	Basic and diluted EPS (in thousands, except per share amounts): Quarter Ended Six Months Ended 2018 2017 2018 2017 Net loss from continuing operations $ (6,930 ) $ (3,779 ) $ (12,108 ) $ (13,329 ) Weighted average common shares outstanding used to compute basic EPS 37,577 37,103 37,514 37,067 Dilutive effect of stock based awards — — — — Weighted average common shares outstanding used to compute diluted EPS 37,577 37,103 37,514 37,067 Basic EPS from continuing operations $ (0.18 ) $ (0.10 ) $ (0.32 ) $ (0.36 ) Diluted EPS from continuing operations $ (0.18 ) $ (0.10 ) $ (0.32 ) $ (0.36 )

Discontinued Operations Disco38

Discontinued Operations Discontinued Operations (Tables)	6 Months Ended
	Jun. 30, 2018
Discontinued Operations and Disposal Groups [Abstract]
Disposal Groups, Including Discontinued Operations [Table Text Block]	The following table summarizes the results of operations, which were recorded in our Mobile Services segment, relating to the discontinued operation (in thousands): Quarter Ended Six Months Ended 2018 2017 2018 2017 Net revenue $ — $ 11,507 $ — $ 22,392 Cost of revenue — 11,003 — 21,727 Gross profit — 504 — 665 Income taxes — 111 — 146 Income from discontinued operations, net of tax $ — $ 393 $ — $ 519 The following table summarizes the remaining carrying amounts of major classes of assets and liabilities of the discontinued operation (in thousands). These assets and liabilities relate to final settlements of prior year activity between various parties. These balances were fully settled prior to the end of the second quarter of 2018. June 30, December 31, Trade accounts receivable, net $ — $ 17,456 Total current assets of discontinued operations — 17,456 Accounts payable $ — $ 15,836 Accrued and other current liabilities — 1,271 Total current liabilities of discontinued operations $ — $ 17,107

Segment Information (Tables)

Segment Information (Tables)	6 Months Ended
	Jun. 30, 2018
Segment Reporting [Abstract]
Segment Results	Disaggregation of Revenue The following table presents our disaggregated revenue by source and segment (in thousands): Quarter Ended June 30, 2018 Six months ended June 30, 2018 Consumer Media Mobile Services Games Consumer Media Mobile Services Games Business Line Software License $ 1,808 $ 469 $ — $ 5,145 $ 1,804 $ — Subscription Services 1,225 6,250 2,689 2,510 13,619 5,382 Product Sales 299 — 1,953 639 — 4,355 Advertising and Other 552 — 479 1,073 — 847 Total $ 3,884 $ 6,719 $ 5,121 9,367 15,423 10,584 The following table presents our disaggregated revenue by sales channel (in thousands): Quarter Ended June 30, 2018 Six months ended June 30, 2018 Consumer Media Mobile Services Games Consumer Media Mobile Services Games Sales Channel Business to Business $ 2,360 $ 6,573 $ 836 $ 6,218 $ 15,103 $ 1,587 Direct to Consumer 1,524 146 4,285 3,149 320 8,997 Total $ 3,884 $ 6,719 $ 5,121 $ 9,367 $ 15,423 $ 10,584 Games Quarter Ended Six Months Ended 2018 2017 2018 2017 Revenue $ 5,121 $ 6,934 $ 10,584 $ 12,757 Cost of revenue 1,456 2,679 3,273 4,616 Gross profit 3,665 4,255 7,311 8,141 Operating expenses 5,095 5,090 10,012 10,037 Operating loss $ (1,430 ) $ (835 ) $ (2,701 ) $ (1,896 ) Mobile Services Quarter Ended Six Months Ended 2018 2017 2018 2017 Revenue $ 6,719 $ 7,720 $ 15,423 $ 15,919 Cost of revenue 2,134 2,426 4,450 5,616 Gross profit 4,585 5,294 10,973 10,303 Operating expenses 6,969 6,705 14,335 14,824 Operating loss $ (2,384 ) $ (1,411 ) $ (3,362 ) $ (4,521 ) Corporate Quarter Ended Six Months Ended 2018 2017 2018 2017 Cost of revenue $ 7 $ 23 $ 17 $ 60 Operating expenses 2,429 2,959 5,696 7,254 Operating loss $ (2,436 ) $ (2,982 ) $ (5,713 ) $ (7,314 ) Consumer Media Quarter Ended Six Months Ended 2018 2017 2018 2017 Revenue $ 3,884 $ 6,951 $ 9,367 $ 12,620 Cost of revenue 1,028 1,159 2,021 2,564 Gross profit 2,856 5,792 7,346 10,056 Operating expenses 3,439 3,730 7,357 7,740 Operating income (loss) $ (583 ) $ 2,062 $ (11 ) $ 2,316
Revenue by Geographic Region	Our customers consist primarily of consumers and corporations located in the U.S., Europe, and various foreign countries (Rest of the World). Revenue by geographic region (in thousands): Quarter Ended Six Months Ended 2018 2017 2018 2017 United States $ 7,646 $ 10,889 $ 19,080 $ 20,629 Europe 3,010 3,205 6,035 6,399 Rest of the World 5,068 7,511 10,259 14,268 Total net revenue $ 15,724 $ 21,605 $ 35,374 $ 41,296
Long-Lived Assets by Geographic Region	Long-lived assets (which consist of primarily of goodwill, but also includes equipment, software, leasehold improvements, and other intangible assets) by geographic region (in thousands) are as follows: June 30, December 31, United States $ 11,915 $ 12,236 Europe 7,287 3,437 Rest of the World 1,354 1,572 Total long-lived assets $ 20,556 $ 17,245

Revenue Recognition (Additional

Revenue Recognition (Additional Information) (Details) - USD ($) $ in Thousands		3 Months Ended		6 Months Ended
		Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017	Jan. 01, 2018	Dec. 31, 2017
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Retained deficit		$ (511,127)		$ (511,127)			$ (500,044)
Revenue	[1]	15,724	$ 21,605	35,374	$ 41,296
Long-term accounts receivable		300		300
Deferred revenue		2,500		2,500
Decrease in deferred revenue				1,000
Revenue recognized				200
Accounting Standards Update 2014-09
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Retained deficit						$ 1,000
Difference between Revenue Guidance in Effect before and after Topic 606 | Accounting Standards Update 2014-09
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Revenue		$ 1,100		$ 2,400
Deferred revenue recorded to retained earnings						$ 800
[1]	Quarters ended June 30,Components of Revenue2018 2017License Fees4,529 9,651Service Revenue11,195 11,954Net Revenue15,724 21,605 Six Months Ended June 30,Components of Revenue2018 2017License Fees$11,943 $16,804Service Revenue23,431 24,492Net Revenue$35,374 $41,296

Revenue Recognition (Disaggrega

Revenue Recognition (Disaggregation of Revenue) (Details) - USD ($) $ in Thousands		3 Months Ended		6 Months Ended
		Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Disaggregation of Revenue [Line Items]
Revenue	[1]	$ 15,724	$ 21,605	$ 35,374	$ 41,296
Consumer Media
Disaggregation of Revenue [Line Items]
Revenue		3,884		9,367
Consumer Media | Business to Business
Disaggregation of Revenue [Line Items]
Revenue		2,360		6,218
Consumer Media | Direct to Consumer
Disaggregation of Revenue [Line Items]
Revenue		1,524		3,149
Consumer Media | Software License
Disaggregation of Revenue [Line Items]
Revenue		1,808		5,145
Consumer Media | Subscription Services
Disaggregation of Revenue [Line Items]
Revenue		1,225		2,510
Consumer Media | Product Sales
Disaggregation of Revenue [Line Items]
Revenue		299		639
Consumer Media | Advertising and Other
Disaggregation of Revenue [Line Items]
Revenue		552		1,073
Mobile Services
Disaggregation of Revenue [Line Items]
Revenue		6,719		15,423
Mobile Services | Business to Business
Disaggregation of Revenue [Line Items]
Revenue		6,573		15,103
Mobile Services | Direct to Consumer
Disaggregation of Revenue [Line Items]
Revenue		146		320
Mobile Services | Software License
Disaggregation of Revenue [Line Items]
Revenue		469		1,804
Mobile Services | Subscription Services
Disaggregation of Revenue [Line Items]
Revenue		6,250		13,619
Mobile Services | Product Sales
Disaggregation of Revenue [Line Items]
Revenue		0		0
Mobile Services | Advertising and Other
Disaggregation of Revenue [Line Items]
Revenue		0		0
Games
Disaggregation of Revenue [Line Items]
Revenue		5,121		10,584
Games | Business to Business
Disaggregation of Revenue [Line Items]
Revenue		836		1,587
Games | Direct to Consumer
Disaggregation of Revenue [Line Items]
Revenue		4,285		8,997
Games | Software License
Disaggregation of Revenue [Line Items]
Revenue		0		0
Games | Subscription Services
Disaggregation of Revenue [Line Items]
Revenue		2,689		5,382
Games | Product Sales
Disaggregation of Revenue [Line Items]
Revenue		1,953		4,355
Games | Advertising and Other
Disaggregation of Revenue [Line Items]
Revenue		$ 479		$ 847
[1]	Quarters ended June 30,Components of Revenue2018 2017License Fees4,529 9,651Service Revenue11,195 11,954Net Revenue15,724 21,605 Six Months Ended June 30,Components of Revenue2018 2017License Fees$11,943 $16,804Service Revenue23,431 24,492Net Revenue$35,374 $41,296

Stock-Based Compensation (Recog

Stock-Based Compensation (Recognized Stock-Based Compensation Expense) (Detail) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2017
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Total stock-based compensation expense	$ 457	$ 863	$ 2,297

Stock-Based Compensation (Weigh

Stock-Based Compensation (Weighted-Average Assumptions Used to Determine Fair Value of Options Granted) (Detail)	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Expected dividend yield	0.00%	0.00%	0.00%	0.00%
Risk-free interest rate	2.72%	1.62%	2.59%	1.76%
Expected life	3 years 9 months 18 days	3 years 8 months 12 days	4 years	4 years 4 months 24 days
Volatility	35.00%	34.00%	35.00%	35.00%

Stock-Based Compensation (Addit

Stock-Based Compensation (Additional Information) (Detail) $ in Millions	6 Months Ended
	Jun. 30, 2018USD ($)
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Total unrecognized compensation cost	$ 2.9
Total unrecognized compensation cost, expected recognition period (in years)	3 years 9 months 18 days

Rhapsody Joint Venture (Additio

Rhapsody Joint Venture (Additional Information) (Detail) - USD ($)	1 Months Ended		3 Months Ended			6 Months Ended
	Jan. 31, 2017	Dec. 31, 2016	Jun. 30, 2018	Jun. 30, 2017	Mar. 31, 2010	Jun. 30, 2018	Jun. 30, 2017	Nov. 30, 2017	Dec. 01, 2016
Schedule of Equity Method Investments [Line Items]
Losses recorded in the operations of Rhapsody			$ 0	$ 349,000		$ 0	$ 1,097,000
Advance to Rhapsody						$ 0	1,500,000
Rhapsody America LLC
Schedule of Equity Method Investments [Line Items]
Percentage of ownership interest in Rhapsody			42.00%			42.00%
Payments for restructuring					$ 18,000,000
Liquidation preference amount			$ 10,000,000			$ 10,000,000
Losses recorded in the operations of Rhapsody			0	$ (300,000)			$ (1,100,000)
Carrying value			0			0
Loan principal to related party									$ 5,000,000
Advance to Rhapsody	$ 1,500,000	$ 3,500,000
Related party loan rate		10.00%
Line of Credit [Member]
Schedule of Equity Method Investments [Line Items]
Guarantor Obligations, Maximum Exposure, Undiscounted			$ 2,750,000			$ 2,750,000		$ 2,750,000

Rhapsody Joint Venture (Summari

Rhapsody Joint Venture (Summarized Financial Operating Information for Rhapsody) (Detail) - Rhapsody America LLC - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Schedule of Equity Method Investments [Line Items]
Net revenue	$ 36,239	$ 44,136	$ 76,529	$ 91,598
Gross profit	9,383	6,099	18,661	12,682
Operating income (loss)	3,895	(4,760)	10,310	(9,871)
Net loss	$ 2,134	$ (7,693)	$ 6,582	$ (13,333)

Fair Value Measurements (Financ

Fair Value Measurements (Financial Assets Measured at Fair Value on a Recurring Basis) (Detail) - USD ($) $ in Thousands	Jun. 30, 2018	Dec. 31, 2017
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Financial assets fair value	$ 44,952	$ 63,364
Amortized Cost	44,009	62,375
Cash and Cash Equivalents
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Financial assets fair value	39,080	51,196
Amortized Cost	39,080	51,196
Cash and Cash Equivalents | Cash
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Financial assets fair value	21,538	31,065
Amortized Cost	21,538	31,065
Cash and Cash Equivalents | Money market funds
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Financial assets fair value	17,542	20,131
Amortized Cost	17,542	20,131
Short-term Investments
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Financial assets fair value	3,053	8,779
Amortized Cost	3,049	8,779
Short-term Investments | Corporate notes and bonds
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Financial assets fair value	3,053	8,779
Amortized Cost	3,049	8,779
Restricted cash equivalents
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Financial assets fair value	1,880	2,400
Amortized Cost	1,880	2,400
Related Party Transaction | Warrants issued by Rhapsody
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Financial assets fair value	939	989
Amortized Cost	0	0
Level 1
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Financial assets fair value	39,080	51,196
Level 1 | Cash and Cash Equivalents
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Financial assets fair value	39,080	51,196
Level 1 | Cash and Cash Equivalents | Cash
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Financial assets fair value	21,538	31,065
Level 1 | Cash and Cash Equivalents | Money market funds
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Financial assets fair value	17,542	20,131
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
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Financial assets fair value	0	0
Level 1 | Related Party Transaction | Warrants issued by Rhapsody
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Financial assets fair value	0	0
Level 2
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Financial assets fair value	4,933	11,179
Level 2 | Cash and Cash Equivalents
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Financial assets fair value	0	0
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 | Short-term Investments
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Financial assets fair value	3,053	8,779
Level 2 | Short-term Investments | Corporate notes and bonds
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Financial assets fair value	3,053	8,779
Level 2 | Restricted cash equivalents
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Financial assets fair value	1,880	2,400
Level 2 | Related Party Transaction | Warrants issued by Rhapsody
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Financial assets fair value	0	0
Level 3
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Financial assets fair value	939	989
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 | 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
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Financial assets fair value	0	0
Level 3 | Related Party Transaction | Warrants issued by Rhapsody
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Financial assets fair value	$ 939	$ 989

Fair Value Measurements (Short-

Fair Value Measurements (Short-term Investments) (Details) - USD ($) $ in Thousands	Jun. 30, 2018	Dec. 31, 2017
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Total short-term investments	$ 44,952	$ 63,364
Short-term Investments
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Total short-term investments	3,053	$ 8,779
Estimate of Fair Value Measurement | Short-term Investments
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Within one year	3,053
Between one year and five years	0
Total short-term investments	$ 3,053

Fair Value Measurements - Addit

Fair Value Measurements - Additional Information (Detail) - USD ($) $ in Thousands	1 Months Ended		3 Months Ended		6 Months Ended
	Feb. 28, 2017	Feb. 28, 2015	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017	Dec. 31, 2017
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Financial assets fair value			$ 44,952		$ 44,952		$ 63,364
Expected life			3 years 9 months 18 days	3 years 8 months 12 days	4 years	4 years 4 months 24 days
Volatility			35.00%	34.00%	35.00%	35.00%
Warrants issued by Rhapsody | Related Party Debt Obligation
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Increase in expected term					3 years 3 months
Total expected term for warrant					8 years 3 months
Warrants issued by Rhapsody | Related Party Debt Obligation | Rhapsody America LLC
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Financial assets fair value	$ 500	$ 1,200
Expected life	5 years	5 years
Volatility	55.00%	55.00%
Warrants Issued To Purchase Napster | Related Party Debt Obligation
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Increase in expected term					1 year
Total expected term for warrant					6 years

Other Intangible Assets (Detail

Other Intangible Assets (Detail) - USD ($) $ in Thousands	Jun. 30, 2018	Apr. 16, 2018	Dec. 31, 2017
Finite-Lived Intangible Assets, Net [Abstract]
Gross Amount	$ 65,104		$ 66,971
Accumulated Amortization	64,889		66,646
Net	215		325
Customer relationships
Finite-Lived Intangible Assets, Net [Abstract]
Gross Amount	31,166		32,286
Accumulated Amortization	31,025		31,997
Net	141		289
Developed technology
Finite-Lived Intangible Assets, Net [Abstract]
Gross Amount	24,598		25,177
Accumulated Amortization	24,598		25,177
Net	0		0
Patents, trademarks and tradenames
Finite-Lived Intangible Assets, Net [Abstract]
Gross Amount	3,792		3,932
Accumulated Amortization	3,792		3,896
Net	0		36
Service contracts
Finite-Lived Intangible Assets, Net [Abstract]
Gross Amount	5,548		5,576
Accumulated Amortization	5,474		5,576
Net	74		$ 0
Netherlands-Based Game Development Studio
Finite-Lived Intangible Assets, Net [Abstract]
Intangible assets acquired	$ 100	$ 100

Goodwill (Changes in Goodwill)

Goodwill (Changes in Goodwill) (Detail) $ in Thousands	6 Months Ended
	Jun. 30, 2018USD ($)
Goodwill [Roll Forward]
Beginning Balance	$ 13,060
Goodwill, Written off Related to Sale of Business Unit	4,367
Effects of foreign currency translation	(307)
Ending Balance	$ 17,120

Goodwill (Additional Informatio

Goodwill (Additional Information) (Details) - USD ($) $ in Thousands	Apr. 16, 2018	Jun. 30, 2018	Dec. 31, 2017
Acquired Finite-Lived Intangible Assets [Line Items]
Goodwill		$ 17,120	$ 13,060
Netherlands-Based Game Development Studio
Acquired Finite-Lived Intangible Assets [Line Items]
Percentage of shares acquired	100.00%
Net purchase price	$ 4,200
Intangible assets acquired	100	$ 100
Goodwill	$ 4,400

Goodwill (Goodwill by Segments)

Goodwill (Goodwill by Segments) (Detail) - USD ($) $ in Thousands	Jun. 30, 2018	Dec. 31, 2017
Goodwill [Line Items]
Goodwill	$ 17,120	$ 13,060
Consumer Media
Goodwill [Line Items]
Goodwill	580
Mobile Services
Goodwill [Line Items]
Goodwill	2,106
Games
Goodwill [Line Items]
Goodwill	$ 14,434

Accrued and Other Current Lia54

Accrued and Other Current Liabilities (Detail) - USD ($) $ in Thousands	Jun. 30, 2018	Dec. 31, 2017
Payables and Accruals [Abstract]
Royalties and other fulfillment costs	$ 3,226	$ 2,965
Employee compensation, commissions and benefits	3,856	4,384
Sales, VAT and other taxes payable	1,495	1,782
Other	3,684	3,234
Total accrued and other liabilities	$ 12,261	$ 12,365

Restructuring Charges (Details)

Restructuring Charges (Details) - Employee Separation Costs - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017
Restructuring Cost and Reserve [Line Items]
Costs incurred and charged to expense	$ 688	$ 1,714
Restructuring Reserve [Roll Forward]
Accrued liability beginning balance	244
Costs incurred and charged to expense	688
Cash payments	(638)
Accrued liability ending balance	$ 294

Lease Exit and Related Charge56

Lease Exit and Related Charges (Changes to Accrued Loss on Excess Office Facilities) (Detail) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Loans and Leases Receivable Disclosure [Line Items]
Reduction in lease space (as a percent)	15.00%		15.00%
Lease exit and related charges (benefit)	$ 129	$ 0	$ 454	$ 0
Accrued Loss on Excess Office Facilities [Roll Forward]
Accrued loss at December 31, 2017			2,058
Additions and adjustments to the lease loss accrual, including estimated sublease income			(454)
Less amounts paid, net of sublease amounts			(433)
Accrued loss at June 30, 2018	1,171		1,171
Less current portion (included in Accrued and other current liabilities)	(181)		(181)
Accrued loss, non-current portion (included in Other long term liabilities)	$ 990		990
Seattle
Loans and Leases Receivable Disclosure [Line Items]
Lease exit and related charges (benefit)			$ 300

Shareholders_ Equity (Accumulat

Shareholders’ Equity (Accumulated Other Comprehensive Income (Loss)) (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017	Dec. 31, 2017
Accumulated Other Comprehensive Income (Loss) [Roll Forward]
Accumulated other comprehensive income (loss), beginning of period			$ 79,173
Unrealized gains, net of tax effects of $1, $3, $1 and $5		$ 6	3	$ 10
Total other comprehensive income (loss)	$ (1,602)	652	(1,205)	1,250
Accumulated other comprehensive loss balance, end of period	68,370		68,370
Total accumulated other comprehensive loss, end of period	(60,752)	(60,395)	(60,752)	(60,395)	$ (59,547)
Investments
Accumulated Other Comprehensive Income (Loss) [Roll Forward]
Accumulated other comprehensive income (loss), beginning of period	3	(2)	2	(6)
Unrealized gains, net of tax effects of $1, $3, $1 and $5	2	6	3	10
Total other comprehensive income (loss)	2	6	3	10
Accumulated other comprehensive loss balance, end of period	5	4	5	4
Accumulated Other Comprehensive Income (Loss), Tax [Abstract]
Unrealized gains (losses), tax effects	1	3	1	5
Foreign currency translation
Accumulated Other Comprehensive Income (Loss) [Roll Forward]
Accumulated other comprehensive income (loss), beginning of period	(59,153)	(61,045)	(59,549)	(61,639)
Translation adjustments	(1,604)	646	(1,208)	1,240
Total other comprehensive income (loss)	(1,604)	646	(1,208)	1,240
Accumulated other comprehensive loss balance, end of period	$ (60,757)	$ (60,399)	$ (60,757)	$ (60,399)

Earnings (Loss) Per Share (Calc

Earnings (Loss) Per Share (Calculation of Basic and Diluted Earnings Per Share) (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Earnings Per Share [Abstract]
Net loss from continuing operations	$ (6,930)	$ (3,779)	$ (12,108)	$ (13,329)
Net loss	(6,930)	(3,386)	(12,108)	(12,810)
Comprehensive Income (Loss), Net of Tax, Attributable to Parent	$ (8,532)	$ (2,734)	$ (13,313)	$ (11,560)
Weighted average common shares outstanding used to compute basic EPS	37,577	37,103	37,514	37,067
Dilutive effect of stock based awards	0	0	0	0
Weighted average common shares outstanding used to compute diluted EPS	37,577	37,103	37,514	37,067
Basic EPS from continuing operations (in dollars per share)	$ (0.18)	$ (0.10)	$ (0.32)	$ (0.36)
Diluted EPS from continuing operations (in dollars per share)	$ (0.18)	$ (0.10)	$ (0.32)	$ (0.36)

Earnings (Loss) Per Share (Addi

Earnings (Loss) Per Share (Additional Information) (Detail) - shares shares in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Earnings Per Share [Abstract]
Shares of common stock excluded from the calculation of diluted net income per share because of antidilutive effect	5.9	5.2	6	5.2

Discontinued Operations (Result

Discontinued Operations (Results of Operations Relating to Discontinued Operations) (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Income from discontinued operations, net of tax	$ 0	$ 393	$ 0	$ 519
LOEN | Discontinued Operations
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Net revenue	0	11,507	0	22,392
Cost of revenue	0	11,003	0	21,727
Gross profit	0	504	0	665
Income taxes	0	111	0	146
Income from discontinued operations, net of tax	$ 0	$ 393	$ 0	$ 519

Discontinued Operations (Carryi

Discontinued Operations (Carrying Amounts of Assets and Liabilities) (Details) - USD ($) $ in Thousands	Jun. 30, 2018	Dec. 31, 2017
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Total current assets of discontinued operations	$ 0	$ 17,456
Total current liabilities of discontinued operations	0	17,107
LOEN | Discontinued Operations
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Trade accounts receivable, net	0	17,456
Total current assets of discontinued operations	0	17,456
Accounts payable	0	15,836
Accrued and other current liabilities	0	1,271
Total current liabilities of discontinued operations	$ 0	$ 17,107

Segment Information (Additional

Segment Information (Additional Information) (Detail)	6 Months Ended
	Jun. 30, 2018Segment
Segment Reporting [Abstract]
Number of reporting segments	3

Segment Information (Segment Re

Segment Information (Segment Results) (Detail) - USD ($) $ in Thousands		3 Months Ended		6 Months Ended
		Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Segment Reporting Information [Line Items]
Revenue	[1]	$ 15,724	$ 21,605	$ 35,374	$ 41,296
Cost of revenue	[2]	4,625	6,287	9,761	12,856
Gross profit		11,099	15,318	25,613	28,440
Operating expenses		17,932	18,484	37,400	39,855
Operating income (loss)		(6,833)	(3,166)	(11,787)	(11,415)
Consumer Media
Segment Reporting Information [Line Items]
Revenue		3,884		9,367
Mobile Services
Segment Reporting Information [Line Items]
Revenue		6,719		15,423
Games
Segment Reporting Information [Line Items]
Revenue		5,121		10,584
Operating Segments | Consumer Media
Segment Reporting Information [Line Items]
Revenue		3,884	6,951	9,367	12,620
Cost of revenue		1,028	1,159	2,021	2,564
Gross profit		2,856	5,792	7,346	10,056
Operating expenses		3,439	3,730	7,357	7,740
Operating income (loss)		(583)	2,062	(11)	2,316
Operating Segments | Mobile Services
Segment Reporting Information [Line Items]
Revenue		6,719	7,720	15,423	15,919
Cost of revenue		2,134	2,426	4,450	5,616
Gross profit		4,585	5,294	10,973	10,303
Operating expenses		6,969	6,705	14,335	14,824
Operating income (loss)		(2,384)	(1,411)	(3,362)	(4,521)
Operating Segments | Games
Segment Reporting Information [Line Items]
Revenue		5,121	6,934	10,584	12,757
Cost of revenue		1,456	2,679	3,273	4,616
Gross profit		3,665	4,255	7,311	8,141
Operating expenses		5,095	5,090	10,012	10,037
Operating income (loss)		(1,430)	(835)	(2,701)	(1,896)
Corporate
Segment Reporting Information [Line Items]
Cost of revenue		7	23	17	60
Operating expenses		2,429	2,959	5,696	7,254
Operating income (loss)		$ (2,436)	$ (2,982)	$ (5,713)	$ (7,314)
[1]	Quarters ended June 30,Components of Revenue2018 2017License Fees4,529 9,651Service Revenue11,195 11,954Net Revenue15,724 21,605 Six Months Ended June 30,Components of Revenue2018 2017License Fees$11,943 $16,804Service Revenue23,431 24,492Net Revenue$35,374 $41,296
[2]	Quarters ended June 30,Components of Cost of Revenue2018 2017License Fees1,465 2,611Service Revenue3,160 3,676Net Revenue Costs4,625 6,287 Six Months Ended June 30,Components of Cost of Revenue2018 2017License Fees$3,220 $4,520Service Revenue6,541 8,336Net Revenue Costs$9,761 $12,856

Segment Information (Revenue by

Segment Information (Revenue by Geographic Region) (Detail) - USD ($) $ in Thousands		3 Months Ended		6 Months Ended
		Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenue	[1]	$ 15,724	$ 21,605	$ 35,374	$ 41,296
United States
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenue		7,646	10,889	19,080	20,629
Europe
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenue		3,010	3,205	6,035	6,399
Rest of the World
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenue		$ 5,068	$ 7,511	$ 10,259	$ 14,268
[1]	Quarters ended June 30,Components of Revenue2018 2017License Fees4,529 9,651Service Revenue11,195 11,954Net Revenue15,724 21,605 Six Months Ended June 30,Components of Revenue2018 2017License Fees$11,943 $16,804Service Revenue23,431 24,492Net Revenue$35,374 $41,296

Segment Information (Long-Lived

Segment Information (Long-Lived Assets by Geographic Region) (Detail) - USD ($) $ in Thousands	Jun. 30, 2018	Dec. 31, 2017
Revenues from External Customers and Long-Lived Assets [Line Items]
Long-lived assets	$ 20,556	$ 17,245
United States
Revenues from External Customers and Long-Lived Assets [Line Items]
Long-lived assets	11,915	12,236
Europe
Revenues from External Customers and Long-Lived Assets [Line Items]
Long-lived assets	7,287	3,437
Rest of the World
Revenues from External Customers and Long-Lived Assets [Line Items]
Long-lived assets	$ 1,354	$ 1,572