Realnetworks (RNWK) 10-Q 31 Oct 19 2019 Q3 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	9 Months Ended
	Sep. 30, 2019	Oct. 29, 2019
Document and Entity Information [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Sep. 30, 2019
Document Fiscal Year Focus	2019
Document Fiscal Period Focus	Q3
Entity Registrant Name	REALNETWORKS INC
Entity Central Index Key	0001046327
Current Fiscal Year End Date	--12-31
Entity Filer Category	Accelerated Filer
Entity Small Business	true
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Current Reporting Status	Yes
Entity Common Stock, Shares Outstanding		38,120,035

CONDENSED CONSOLIDATED BALANCE

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Sep. 30, 2019	Dec. 31, 2018
Current assets:
Cash and cash equivalents	$ 18,101	$ 35,561
Short-term investments	0	24
Trade accounts receivable, net of allowances of $616 and $560	27,947	11,751
Deferred costs, current portion	950	331
Prepaid expenses and other current assets	18,931	5,911
Total current assets	65,929	53,578
Equipment, software, and leasehold improvements, at cost:
Equipment and software	31,853	37,458
Leasehold improvements	3,255	3,292
Total equipment, software, and leasehold improvements, at cost	35,108	40,750
Less accumulated depreciation and amortization	32,171	37,996
Net equipment, software, and leasehold improvements	2,937	2,754
Operating lease assets	12,499	0
Restricted cash equivalents	5,374	1,630
Other assets	2,842	3,997
Deferred costs, non-current portion	957	528
Deferred tax assets, net	831	851
Other intangible assets, net	20,309	26
Goodwill	65,154	16,955
Total assets	176,832	80,319
Current liabilities:
Accounts payable	4,692	3,910
Accrued royalties, fulfillment and other current liabilities	92,529	11,312
Commitment to Napster	0	2,750
Deferred revenue, current portion	6,134	2,125
Notes payable	3,599	0
Total current liabilities	106,954	20,097
Deferred revenue, non-current portion	139	268
Deferred rent	0	986
Deferred tax liabilities, net	1,225	1,168
Operating Lease, Liability, Noncurrent	9,486	0
Long-term Debt	3,900	0
Other long-term liabilities	11,195	960
Total liabilities	132,899	23,479
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 38,067 shares in 2019 and 37,728 shares in 2018	38	37
Additional paid-in capital	643,573	641,930
Accumulated other comprehensive loss	(61,929)	(61,118)
Retained deficit	(537,646)	(524,009)
Total shareholders’ equity	44,036	56,840
Stockholders' Equity Attributable to Noncontrolling Interest	(103)	0
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest	43,933	56,840
Total liabilities and equity	176,832	80,319
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 BALANC_2

CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands	Sep. 30, 2019	Dec. 31, 2018
Accounts Receivable, Allowance for Credit Loss, Current	$ 616	$ 560
Preferred stock, par value (USD per share)	$ 0.001	$ 0.001
Preferred stock, shares issued	0	0
Preferred stock, shares outstanding	0	0
Common stock, par value (USD per share)	$ 0.001	$ 0.001
Common stock, authorized	250,000,000	250,000,000
Common stock, issued	38,067,000	37,728,000
Common stock, outstanding	38,067,000	37,728,000
Preferred stock, Series A
Preferred stock, authorized	200,000	200,000
Preferred stock, Undesignated series
Preferred stock, authorized	59,800,000	59,800,000

CONDENSED CONSOLIDATED STATEMEN

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS) - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Income Statement [Abstract]
Revenue	$ 44,993	$ 17,579	$ 128,713	$ 52,953
Cost of revenue	26,278	4,239	78,430	14,000
Gross profit	18,715	13,340	50,283	38,953
Operating expenses:
Research and development	8,687	8,052	26,396	23,398
Sales and marketing	8,470	4,998	24,972	15,878
General and administrative	7,132	4,586	23,888	15,526
Restructuring and other charges	691	632	1,587	1,320
Lease exit and related benefit	0	0	0	(454)
Total operating expenses	24,980	18,268	76,843	55,668
Operating loss	(6,265)	(4,928)	(26,560)	(16,715)
Other income (expenses):
Interest Expense	(220)	0	(429)	0
Interest income	0	72	117	270
Business Combination, Step Acquisition, Remeasurement Gain and Gains (Losses) From Other Preexisting Relationships	0	0	12,338	0
Equity in net loss of Napster investment	0	(737)	0	(737)
Other income (expenses), net	541	(112)	851	(195)
Total other income (expenses), net	321	(777)	12,877	(662)
Income (loss) before income taxes	(5,944)	(5,705)	(13,683)	(17,377)
Income tax expense	310	272	812	708
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest	(6,254)	(5,977)	(14,495)	(18,085)
Net Income (Loss) Attributable to Noncontrolling Interest		0		0
Net income (loss) attributable to RealNetworks	$ (5,968)	$ (5,977)	$ (13,637)	$ (18,085)
Basic net income (loss) per share (USD per share)	$ (0.16)	$ (0.16)	$ (0.36)	$ (0.48)
Diluted net income (loss) per share (USD per share)	$ (0.16)	$ (0.16)	$ (0.36)	$ (0.48)
Shares used to compute basic net income (loss) per share	38,062	37,618	37,944	37,549
Shares used to compute diluted net income (loss) per share	38,062	37,618	37,944	37,549
Comprehensive income (loss):
Unrealized investment holding gains (losses), net of reclassification adjustments	$ 0	$ (3)	$ 0	$ 0
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Adjustment, Net of Tax	(232)	(322)	(811)	(1,530)
Total other comprehensive income (loss)	(232)	(325)	(811)	(1,530)
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest	(6,254)	(5,977)	(14,495)	(18,085)
Comprehensive Income (Loss), Net of Tax, Including Portion Attributable to Noncontrolling Interest	(6,486)	(6,302)	(15,306)	(19,615)
Comprehensive Income (Loss), Net of Tax, Attributable to Noncontrolling Interest	(286)	0	(858)	0
Comprehensive income (loss) including noncontrolling interests	$ (6,200)	$ (6,302)	$ (14,448)	$ (19,615)

CONDENSED CONSOLIDATED STATEM_2

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018
Cash flows from operating activities:
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest	$ (14,495)	$ (18,085)
Adjustments to reconcile net income (loss) including noncontrolling interests to net cash used in operating activities:
Depreciation and amortization	4,397	1,738
Stock-based compensation	2,420	2,113
Equity in net loss of Napster investment	0	737
Deferred income taxes, net	0	5
Business Combination, Step Acquisition, Remeasurement Gain and Gains (Losses) From Other Preexisting Relationships	(12,338)	0
Foreign currency (gain) loss	(804)	0
Business Combination, Contingent Consideration Arrangements, Change in Amount of Contingent Consideration, Liability	700	0
Mark to market adjustment of warrants	0	78
Trade accounts receivable	4,036	16,754
Prepaid expenses, operating lease and other assets	1,379	(979)
Accounts payable	(64)	(15,235)
Accrued, lease and other liabilities	(5,528)	(2,754)
Net cash used in operating activities	(20,297)	(15,628)
Cash flows from investing activities:
Purchases of equipment, software, and leasehold improvements	(1,068)	(698)
Proceeds from sales and maturities of short-term investments	24	7,607
Cash Acquired from Acquisition	12,260	(4,192)
Net cash provided by investing activities	11,216	2,717
Cash flows from financing activities:
Proceeds from issuance of common stock (stock options and stock purchase plan)	144	114
Tax payments from shares withheld upon vesting of restricted stock	(289)	(243)
Proceeds from Notes Payable	31,337	0
Repayments of Notes Payable	(35,768)	0
Payments of Financing Costs	(569)	0
Proceeds from (Payments for) Other Financing Activities	900	0
Net cash provided by (used in) financing activities	(4,245)	(129)
Effect of exchange rate changes on cash, cash equivalents and restricted cash	(390)	(962)
Net increase (decrease) in cash, cash equivalents and restricted cash	(13,716)	(14,002)
Cash, cash equivalents and restricted cash, beginning of period	37,191	53,596
Cash, cash equivalents, and restricted cash end of period	$ 23,475	$ 39,594

UNAUDITED CONDENSED CONSOLIDATE

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY - USD ($) shares in Thousands, $ in Thousands	Total	Common Stock	Additional Paid-in Capital	AOCI Attributable to Parent	Retained Earnings	Parent	Noncontrolling Interest
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest	$ 79,173	$ 37	$ 638,727	$ (59,547)	$ (500,044)	$ 79,173	$ 0
Shares, Outstanding at Dec. 31, 2017		37,341
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period		223
Stock Issued During Period, Value, Stock Options Exercised	(232)		(232)			(232)
Unrealized investment holding gains (losses), net of reclassification adjustments	1			1		1
APIC, Share-based Payment Arrangement, Increase for Cost Recognition	1,157		1,157			1,157
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Adjustment, Net of Tax	396			396		396
Net income (loss) attributable to RealNetworks					(5,178)	(5,178)
Shares, Outstanding at Mar. 31, 2018		37,564
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest	(5,178)
Shares, Outstanding at Dec. 31, 2017		37,341
Equity in net loss of Napster investment	737
Unrealized investment holding gains (losses), net of reclassification adjustments	0
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Adjustment, Net of Tax	(1,530)
Net income (loss) attributable to RealNetworks	(18,085)
Net Income (Loss) Attributable to Noncontrolling Interest	0
Shares, Outstanding at Sep. 30, 2018		37,652
Accumulated other comprehensive loss balance, end of period at Sep. 30, 2018		$ 37	641,449	(61,077)	(517,104)	63,305
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest	(18,085)
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest	76,342	$ 37	639,652	(59,150)	(504,197)	76,342	0
Shares, Outstanding at Mar. 31, 2018		37,564
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period		48
Stock Issued During Period, Value, Stock Options Exercised	103		103			103
Unrealized investment holding gains (losses), net of reclassification adjustments	2			2		2
APIC, Share-based Payment Arrangement, Increase for Cost Recognition	457		457			457
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Adjustment, Net of Tax	(1,604)			(1,604)		(1,604)
Net income (loss) attributable to RealNetworks					(6,930)	(6,930)
Shares, Outstanding at Jun. 30, 2018		37,612
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest	(6,930)
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest	68,370	$ 37	640,212	(60,752)	(511,127)	68,370	0
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period		40
Stock Issued During Period, Value, Stock Options Exercised	1		1			1
Equity in net loss of Napster investment	737		737			737
Unrealized investment holding gains (losses), net of reclassification adjustments	(3)			(3)		(3)
APIC, Share-based Payment Arrangement, Increase for Cost Recognition	499		499			499
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Adjustment, Net of Tax	(322)			(322)		(322)
Net income (loss) attributable to RealNetworks	(5,977)				(5,977)	(5,977)
Net Income (Loss) Attributable to Noncontrolling Interest	0
Shares, Outstanding at Sep. 30, 2018		37,652
Accumulated other comprehensive loss balance, end of period at Sep. 30, 2018		$ 37	641,449	(61,077)	(517,104)	63,305
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest	(5,977)
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest	63,305						0
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest	56,840	$ 37	641,930	(61,118)	(524,009)	56,840	0
Shares, Outstanding at Dec. 31, 2018		37,728
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period		190
Stock Issued During Period, Value, Stock Options Exercised	(271)		(271)			(271)
Adjustments to Additional Paid in Capital, Other	(776)		(1,346)			(1,346)	570
APIC, Share-based Payment Arrangement, Increase for Cost Recognition	1,384		1,384			1,384
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Adjustment, Net of Tax	(87)			(87)		(87)
Net income (loss) attributable to RealNetworks	(5,968)				1,533	1,533
Net Income (Loss) Attributable to Noncontrolling Interest							(319)
Stockholders' Equity, Other	450		362			362	88
Shares, Outstanding at Mar. 31, 2019		37,918
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest	1,214
Shares, Outstanding at Dec. 31, 2018		37,728
Equity in net loss of Napster investment	0
Unrealized investment holding gains (losses), net of reclassification adjustments	0
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Adjustment, Net of Tax	(811)
Net income (loss) attributable to RealNetworks	(13,637)
Shares, Outstanding at Sep. 30, 2019		38,067
Accumulated other comprehensive loss balance, end of period at Sep. 30, 2019	44,036
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest	(14,495)
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest	58,754	$ 37	642,059	(61,205)	(522,476)	58,415	339
Shares, Outstanding at Mar. 31, 2019		37,918
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period		131
Stock Issued During Period, Value, Stock Options Exercised	128		128			128
APIC, Share-based Payment Arrangement, Increase for Cost Recognition	533		533			533
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Adjustment, Net of Tax	(492)			(492)		(492)
Net income (loss) attributable to RealNetworks					(9,202)	(9,202)
Net Income (Loss) Attributable to Noncontrolling Interest							(253)
Shares, Outstanding at Jun. 30, 2019		38,049
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest	(9,455)
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest	49,468	$ 37	642,720	(61,697)	(531,678)	49,382	86
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period		18
Restricted Stock, Value, Shares Issued Net of Tax Withholdings		$ 1
Stock Issued During Period, Value, Stock Options Exercised	(2)		(3)			(2)
Equity in net loss of Napster investment	0
Unrealized investment holding gains (losses), net of reclassification adjustments	0
APIC, Share-based Payment Arrangement, Increase for Cost Recognition	503		503			503
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Adjustment, Net of Tax	(232)			(232)		(232)
Net income (loss) attributable to RealNetworks	(5,968)				(5,968)	(5,968)
Net Income (Loss) Attributable to Noncontrolling Interest							(286)
Stockholders' Equity, Other	450		353			353	97
Shares, Outstanding at Sep. 30, 2019		38,067
Accumulated other comprehensive loss balance, end of period at Sep. 30, 2019	44,036
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest	(6,254)
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest	$ 43,933	$ 38	$ 643,573	$ (61,929)	$ (537,646)	$ 44,036	$ (103)

Description of Business and Sum

Description of Business and Summary of Significant Accounting Policies	9 Months Ended
	Sep. 30, 2019
Accounting Policies [Abstract]
Description of Business and Summary of Significant Accounting Policies	Note 1 Description of Business and Summary of Significant Accounting Policies Description of Business. RealNetworks, Inc. and subsidiaries is a leading global provider of network-delivered digital media applications and services that make it easy to manage, play, and share digital media. The Company also develops and markets software products and services that enable the creation, distribution, and consumption of digital media, including audio and video. Our Napster music business, which we acquired on January 18, 2019, offers a comprehensive set of digital music products and services designed to provide consumers with broad access to digital music. For more information on Napster, see Note 5 Acquisitions . 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 and cash flow. 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 subsidiaries in which it has a more than 50% voting interest. Noncontrolling interests primarily represent third-party ownership in the equity of Napster and are reflected separately in the Company’s financial statements. Intercompany balances and transactions have been eliminated in consolidation. The unaudited condensed consolidated financial statements reflect all adjustments, consisting only of normal, recurring adjustments that, in the opinion of management, are necessary for a fair presentation of the results of operations for the periods presented. Operating results for the quarter and nine months ended September 30, 2019 are not necessarily indicative of the results that may be expected for any subsequent period or for the year ending December 31, 2019 . 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, 2018 (the 10-K). Use of Estimates. The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.

Recent Accounting Pronouncement

Recent Accounting Pronouncements	9 Months Ended
	Sep. 30, 2019
Accounting Changes and Error Corrections [Abstract]
Recent Accounting Pronouncements	Note 2 Recent Accounting Pronouncements Recently adopted accounting pronouncements In February 2016, the Financial Accounting Standards Board (FASB) issued new guidance related to the accounting for leases. A major change in the new guidance is that lessees are now required to present right-of-use assets and lease liabilities on the balance sheet. Enhanced disclosures are also required to give financial statement users the ability to assess the amount, timing and uncertainty of cash flows arising from leases. We adopted the new guidance effective January 1, 2019 and elected to apply the new guidance at the beginning of the year of adoption, rather than applying the new guidance retrospectively to each prior reporting period presented. In addition, we elected the package of practical expedients permitted under the transition guidance within the new standard, which among other things, allowed us to carry forward historical lease classification. We have finalized our assessment of the impacts resulting from the new standard, including the impact on our internal controls. As a result of our evaluation, we have modified certain accounting policies and practices and existing controls. Adoption of the standard resulted in the recognition of $12.5 million of operating lease assets and $14.6 million of current and long-term operating lease liabilities as of January 1, 2019. The difference between the operating lease assets and lease liabilities recorded upon adoption relates to previously accrued deferred rent and lease exit and related charges included on our balance sheet as of December 31, 2018. Lease exit and related charges previously recorded pertain to the reduction in use of RealNetworks' office space and included estimates of sublease income expected to be received. The new guidance did not materially impact our consolidated statement of operations in the quarter of adoption or in the third quarter of 2019 and did not cause revision to previously recorded estimates for lease exit charges. See Note 14 Leases for additional information about the new accounting standard. In June 2018, the FASB issued new guidance related to the measurement and classification for share-based awards to non-employees. The new guidance essentially aligns the measurement and classification for these awards with that for share-based awards to employees. We adopted the new guidance effective January 1, 2019, with no material impact on our consolidated financial statements and related disclosures. Recently issued accounting pronouncements not yet adopted 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 in fiscal years beginning after December 15, 2019, with early adoption permitted. We are evaluating the impact of this guidance, but do not currently expect the adoption to have a material impact on our consolidated financial statements and related disclosures.

Revenue Recognition

Revenue Recognition	9 Months Ended
	Sep. 30, 2019
Revenue from Contract with Customer [Abstract]
Revenue Recognition	Note 3 Revenue Recognition 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. 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. This 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. 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. Napster revenue arrangements include subscription services to the Napster music streaming service sold either directly to end users (direct to consumer) or through partners (business to business), who are generally telecommunications companies, that bundle the subscription with their own services or collect payment for the stand-alone subscriptions from their end customers. Napster also sells subscriptions to third parties to provide access to the Napster platform that is typically embedded in the third party's branded or co-branded service. Such subscriptions are included in the business to business sales channel. For services sold through third parties to end customers, we evaluate the presentation of revenue on a gross or net basis based on whether we control the service provided to the end-user and are the principal (i.e. “gross”), or we arrange for other parties to provide the service to the end-user and are an agent (i.e. “net”). In our Napster business to business revenue stream, we generally operate as a principal in arrangements with end customers as we maintain control over the service prior to being transferred to the end customer. Certain business to business customer arrangements include variable consideration based on usage. We estimate variable consideration as part of the total transaction price that is allocated to performance obligations, or distinct service periods within a performance obligation, on a relative standalone selling price basis. Revenues related to Napster subscription services are recognized ratably over the contract period, typically 30 days. Direct to consumer subscriptions are paid in advance, typically on a monthly basis. Subscription services offered to businesses are invoiced on a monthly basis and the timing of payment generally does not vary significantly from the timing of invoice. Disaggregation of Revenue The following table presents our disaggregated revenue by source and segment (in thousands): Quarter Ended September 30, 2019 Nine Months Ended September 30, 2019 Consumer Media Mobile Services Games Napster Consumer Media Mobile Services Games Napster Business Line Software License $ 1,987 $ 888 $ — $ — $ 3,666 $ 2,444 $ — $ — Subscription Services 1,028 6,007 3,056 27,302 3,156 18,387 9,114 80,222 Product Sales 207 — 3,078 — 632 — 7,243 — Advertising and Other 410 — 1,030 — 1,284 — 2,565 — Total $ 3,632 $ 6,895 $ 7,164 $ 27,302 $ 8,738 $ 20,831 $ 18,922 $ 80,222 Quarter Ended September 30, 2018 Nine Months Ended September 30, 2018 Consumer Media Mobile Services Games Napster Consumer Media Mobile Services Games Napster Business Line Software License $ 2,746 $ 520 $ — $ — $ 7,891 $ 2,324 $ — $ — Subscription Services 1,232 6,828 2,744 — 3,742 20,447 8,126 — Product Sales 281 — 2,280 — 920 — 6,635 — Advertising and Other 474 — 474 — 1,547 — 1,321 — Total $ 4,733 $ 7,348 $ 5,498 $ — $ 14,100 $ 22,771 $ 16,082 $ — The following table presents our disaggregated revenue by sales channel (in thousands): Quarter Ended September 30, 2019 Nine Months Ended September 30, 2019 Consumer Media Mobile Services Games Napster Consumer Media Mobile Services Games Napster Sales Channel Business to Business $ 2,398 $ 6,784 $ 1,362 $ 13,084 $ 4,951 $ 20,482 $ 3,513 $ 38,983 Direct to Consumer 1,234 111 5,802 14,218 3,787 349 15,409 41,239 Total $ 3,632 $ 6,895 $ 7,164 $ 27,302 $ 8,738 $ 20,831 $ 18,922 $ 80,222 Quarter Ended September 30, 2018 Nine Months Ended September 30, 2018 Consumer Media Mobile Services Games Napster Consumer Media Mobile Services Games Napster Sales Channel Business to Business $ 3,220 $ 7,209 $ 806 $ — $ 9,438 $ 22,312 $ 2,393 $ — Direct to Consumer 1,513 139 4,692 — 4,662 459 13,689 — Total $ 4,733 $ 7,348 $ 5,498 $ — $ 14,100 $ 22,771 $ 16,082 $ — 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 September 30, 2019 and December 31, 2018 , our balance of long-term accounts receivable was $0.3 million and $0.7 million , respectively, and is included in other long-term assets on our condensed consolidated balance sheets. The decrease in this balance from December 31, 2018 to September 30, 2019 is primarily due to the timing of expected cash receipts. During the quarter and nine months ended September 30, 2019, we recorded no impairments to our contract assets. We record deferred revenue when cash payments are received in advance of our completion of the underlying performance obligation. As of September 30, 2019 , we had a deferred revenue balance of $6.3 million , an increase of $3.9 million from December 31, 2018 , primarily due to deferred revenue associated with Napster. 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	9 Months Ended
	Sep. 30, 2019
Share-based Payment Arrangement [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 Nine Months Ended 2019 2018 2019 2018 Total stock-based compensation expense $ 503 $ 499 $ 2,420 $ 2,113 The fair value of RealNetworks options granted determined using the Black-Scholes model used the following weighted-average assumptions: Quarter Ended Nine Months Ended 2019 2018 2019 2018 Expected dividend yield 0 % 0 % 0 % 0 % Risk-free interest rate 1.71 % 2.78 % 2.16 % 2.69 % Expected life (years) 3.8 3.8 4.1 3.9 Volatility 41 % 35 % 41 % 35 % The total stock-based compensation amounts for 2019 and 2018 disclosed above are recorded in their respective line items within operating expenses in the unaudited condensed consolidated statements of operations and comprehensive income (loss). Included in the expense for the nine months ended September 30, 2019 and 2018 was stock compensation expense recorded in the first quarter of 2019 and 2018 related to our 2018 and 2017 incentive bonuses paid in fully vested restricted stock units, which were authorized and granted in the first quarter of 2019 and 2018, respectively. As of September 30, 2019 , $2.7 million of total unrecognized compensation cost, net of estimated forfeitures, related to stock awards. The unrecognized compensation cost is expected to be recognized over a weighted-average period of approximately 3.0 years.

Acquisitions

Acquisitions	9 Months Ended
	Sep. 30, 2019
Business Combinations [Abstract]
Business Combination Disclosure	Note 5 Acquisitions Napster On January 18, 2019 , RealNetworks acquired an additional 42% interest in Rhapsody International, Inc. (doing business as Napster) bringing our aggregate ownership to 84% of Napster's outstanding equity, thus giving RealNetworks a majority voting interest. Napster's music streaming service provides users with broad access to digital music, offering on-demand streaming and conditional downloads through unlimited access to a catalog of millions of music tracks. Napster offers music services worldwide and generates revenue primarily through subscriptions to its music services either directly to consumers or through distribution partners. Initially formed in 2007 and branded then as Rhapsody, Napster began as a joint venture between RealNetworks and MTV Networks, a division of Viacom International, Inc. Prior to the acquisition of the additional 42% interest in Napster, we accounted for our investment using the equity method of accounting. Following the January 2019 acquisition, RealNetworks has the right to nominate directors constituting a majority of the Napster board of directors, however, Napster will continue to operate as an independent business with its own board of directors, strategy and leadership team. We are consolidating Napster's financial results into our financial statements for fiscal periods following the closing of the acquisition, and Napster is reported as a separate segment in RealNetworks' consolidated financial statements. Napster, however, remains a distinct legal entity and RealNetworks assumes no ownership or control over the assets or liabilities of Napster. We have preliminarily recorded 100% of the estimated fair value of the assets acquired and liabilities assumed as of January 18, 2019 based on the results of an independent valuation. The 16% of Napster that we do not own is accounted for as a noncontrolling interest in our consolidated financial statements, and as part of this consolidation, the carrying value of our previous 42% equity method investment was remeasured to fair value on the acquisition date. The remeasurement to fair value of the historical 42% ownership interest resulted in the recognition of a $2.7 million gain in the first quarter of 2019, which is a component of the overall gain recognized as a part of this transaction. Our consolidated balance sheet reflects Napster's working capital deficit, which results in a consolidated working capital deficit. RealNetworks does not have any contractual or implied obligation to provide funding or other financial support to Napster, or to guarantee or provide other such support related to Napster's third party borrowing or Napster's other obligations on our consolidated balance sheet, except as discussed in Note 15 Commitments and Contingencies . The terms of the transaction included initial cash consideration of $1.0 million and additional contingent consideration. Initial cash consideration of $0.2 million was paid at closing and the remainder of the initial cash consideration is included in accrued royalties, fulfillment and other current liabilities and will be paid when due with existing cash balances. With regards to contingent consideration, over the five years following the acquisition, RealNetworks will pay the lesser of the following: (a) an additional $14.0 million to seller, or (b) if RealNetworks sells the interest to a third party for less than $15.0 million , the actual amount received by RealNetworks, minus the $1.0 million initial payment. In the event that RealNetworks sells such equity interest for consideration in excess of $15.0 million , RealNetworks will pay seller additional consideration, dependent on the sale price, which shall in no event exceed an additional $25.0 million . In order for seller to receive the full $40.0 million , the proceeds from the sale of Napster received by RealNetworks for the 42% equity interest acquired would have to exceed $60.0 million . These contingent consideration amounts were part of the total consideration at estimated fair value, as described in more detail below. The following table summarizes the preliminary allocation of the total consideration to the estimated fair values of the assets acquired and liabilities assumed as of January 18, 2019 (in thousands): Consideration, at estimated fair value: Cash $ 1,000 Contingent consideration 11,600 RealNetworks' preexisting 42% equity interest in Napster 2,700 Effective settlement of Napster debt and warrants, held by RealNetworks 6,408 Total consideration $ 21,708 Assets acquired and liabilities assumed, at estimated fair value: Cash and cash equivalents $ 10,138 Accounts receivable 20,838 Prepaid expenses and other current assets 12,879 Restricted cash 2,322 Equipment, software and leasehold improvements 474 Operating lease assets 2,314 Other long-term assets 77 Deferred tax assets, net 5,942 Intangible assets 23,700 Goodwill 48,474 Total assets acquired 127,158 Accounts payable 937 Accrued royalties and fulfillment 71,980 Accrued and other current liabilities 7,475 Deferred revenue, current portion 3,600 Notes payable 12,115 Deferred tax liabilities, net 6,061 Long-term lease liabilities 1,197 Other long-term liabilities 1,515 Total liabilities assumed 104,880 Total net assets acquired 22,278 Noncontrolling interests 570 Net assets acquired $ 21,708 Under the acquisition method of accounting, the purchase price is allocated to the assets acquired and the liabilities assumed based on their estimated fair values. Due to the complexity and limited time since closing the transaction, the purchase price allocation is subject to change, which may result from additional information becoming available and additional analyses being performed on these acquired assets and assumed liabilities. Such changes could impact estimated fair values of intangible assets, accrued royalties and fulfillment, deferred revenue, and assets and liabilities assumed, as well as the contingent consideration, noncontrolling interests, and gain recognized from consolidation. Purchase price allocation adjustments may be recorded during the measurement period (a period not to exceed 12 months from the acquisition date). The final purchase price allocation could result in material differences, which could have a material impact on our financial statements. Acquired intangible assets have a total weighted average useful life of approximately 8 years, are being amortized using the straight line method, and are comprised of the following (in thousands): Intangible category Estimated fair value Method used to calculate fair value Estimated remaining useful life Trade name and trademarks $ 6,800 Relief-from-royalty 15 years Developed technology 5,900 Excess earnings 4 years Customer relationships 5,900 Cost-to-replace 3 years Partner relationships 5,100 Distributor method 8 years Total $ 23,700 The estimated fair value amounts for each of these intangibles were determined using a fair value measurement categorized within Level 3 of the fair value hierarchy. The fair value of the trade name and trademarks intangible asset was estimated using the income approach, utilizing the relief from royalty method, which values the assets by estimating the savings achieved by ownership of trade name and trademarks when compared with the cost of licensing them from an independent owner. The fair value of developed technology was estimated using the income approach, utilizing the excess earnings method. Under this method, cash flows attributable to the asset are estimated by deducting economic costs, including operating expenses and contributory asset charges, from revenue expected to be generated by the asset. The fair value of customer relationships was estimated using a cost-to-replace approach, whereby the number of subscribers and the cost to acquire subscribers are key estimates utilized in the valuation. The fair value of partner relationships was estimated using the income approach, which uses market-based distributor data to value underlying distributor relationships. Revenue, earnings, and cash flow estimates associated with these underlying distributor relationships are key estimates in determining the fair value of the partner relationships intangibles. The fair value of deferred revenue was estimated using the income approach, utilizing a cost to fulfill analysis by estimating the direct and indirect costs related to supporting remaining obligations plus an assumed operating margin. The fair value of our preexisting 42% equity method investment has been remeasured to an estimated fair value of $2.7 million , which resulted in a pretax gain of $2.7 million , as our existing carrying value was zero. This gain, as well as the settlement of preexisting relationships and other purchase accounting adjustments discussed below, comprise the total gain of $12.3 million recognized in Other income (expenses) in the Consolidated statement of operations in the first quarter of 2019. The fair value of our preexisting equity method investment was calculated using an average of the income and market approach to arrive at estimated total enterprise value. The income approach fair value measurement was based on significant inputs that are not observable in the market and thus represents a fair value measurement categorized within Level 3 of the fair value hierarchy. Key assumptions used in estimating future cash flows included projected revenue growth and operating expenses, as well as the selection of an appropriate discount rate. Estimates of revenue growth and operating expenses were based on internal projections and considered the historical performance of Napster's business. The discount rate applied was based on Napster's weighted-average cost of capital and included a small-company risk premium. The market approach fair value measurement was based on a market comparable methodology. We used a group of comparable companies and selected an appropriate EBITDA and revenue multiple to apply to Napster's trailing twelve months and projected 2019, 2020 and 2021 EBITDA (weighted 90%) and revenues (weighted 10%). Assumptions in both the income and market approaches are significant to the overall valuation of Napster and changes to these assumptions could materially impact the preliminary fair values of assets acquired and liabilities assumed, noncontrolling interests, total consideration, and gain on consolidation. The fair value of the contingent consideration was estimated using multiple scenarios for each tranche of contingent consideration and then probability weighting each scenario and discounting them to estimated fair value of $11.6 million . This fair value calculation is directly impacted by the estimated total enterprise value described above. After the completion of the measurement period or in conjunction with changes in fair value unrelated to our preliminary estimate of fair value, the contingent consideration will be adjusted quarterly to fair value through earnings. Of the total amount of $11.6 million , we accrued $2.6 million and $9.0 million in Accrued royalties, fulfillment and other current liabilities, and Other long-term liabilities, respectively, as of March 31, 2019. See Note 6 Fair Value Measurements for details on the adjustment to this liability. The effective settlement of Napster's debt and warrants totaling $6.4 million represents the estimated fair value of debt and warrants held between RealNetworks and Napster as of the acquisition date. The estimated fair value is derived from the estimated total enterprise value described above. The resulting net gain of $5.5 million is included in Other income (expenses) in the Consolidated statement of operations. As discussed in Note 15 Commitments and Contingencies , the preexisting $2.8 million guarantee related to Napster's outstanding indebtedness on their revolving credit facility was eliminated upon the consolidation of Napster. This resulted in RealNetworks recording a gain of $2.8 million , which is included in Other income (expenses) in the Consolidated statement of operations. Prior to our acquisition of Napster, we accounted for our investment under the equity method of accounting and recorded Napster 's foreign currency translation adjustments in our equity. As part of the acquisition method of accounting, we released these amounts and recorded a gain of $1.3 million , which is included in Other income (expenses) in the Consolidated statement of operations. We recorded the fair value of noncontrolling interests on the acquisition date, estimated at $0.6 million , using the estimated total enterprise value described above. We also recorded goodwill of $48.5 million , representing the intangible assets that do not qualify for separate recognition for accounting purposes, including the expected growth in Napster's business to business model and the assembled workforce. The goodwill is reported in our Napster segment and is not deductible for income tax purposes. As discussed above, during the measurement period, purchase price allocation adjustments or changes in assumptions used in determining the total estimated enterprise value of Napster could materially impact goodwill recognized. Moreover, future performance of the Napster business will factor into our goodwill impairment analysis. We began consolidating Napster's results of operations and cash flows into our consolidated financial statements after January 18, 2019 . For the quarter ended September 30, 2019 , Napster's revenue and net loss including noncontrolling interests in our consolidated statements of operations was $27.3 million and $1.0 million , respectively. For the nine months ended September 30, 2019 , Napster's revenue and net loss including noncontrolling interests in our consolidated statements of operations was $80.2 million and $4.3 million , respectively. The following table provides the supplemental pro forma revenue and net results of the combined entity had the acquisition date of Napster been the first day of our first quarter of 2018 rather than during our first quarter of 2019 (in thousands): Quarter Ended - Pro Forma (Unaudited) Nine Months Ended - Pro Forma (Unaudited) 2019 2018 2019 2018 Net revenue $ 45,074 $ 52,888 $ 135,267 $ 165,033 Net income (loss) attributable to RealNetworks (1) (5,386 ) (3,748 ) (23,358 ) (1,453 ) (1) The pro forma net earnings attributable to RealNetworks for the quarter ended September 30, 2018 include $0.1 million of transaction costs, and for the nine months ended September 30, 2018, pro forma net earnings attributable to RealNetworks include the acquisition related gain of $12.3 million and $1.3 million of transaction costs. The amounts in the supplemental pro forma earnings for the periods presented above fully eliminate intercompany transactions and conform Napster's accounting policies to RealNetworks'. These pro forma results also reflect amortization of acquisition-related intangibles and fair value adjustments to deferred revenue and contingent consideration. The unaudited pro forma amounts are based upon the historical financial statements of RealNetworks and Napster and were prepared using the acquisition method of accounting and are not necessarily indicative of results for any current or future period. The purchase price allocation is preliminary and is subject to change prior to finalization. The final purchase price allocation could result in material differences, which could have a material impact on the accompanying pro forma amounts. For the quarter and nine months ended September 30, 2019, we incurred approximately $0.1 million and $1.3 million , respectively, in acquisition-related costs, including regulatory, legal, and other advisory fees, which we have recorded within general and administrative expenses. Games As described in more detail in our 2018 10-K, 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 in April 2018.

Fair Value Measurements

Fair Value Measurements	9 Months Ended
	Sep. 30, 2019
Fair Value Disclosures [Abstract]
Fair Value Measurements	Note 6 Fair Value Measurements Items Measured at Fair Value on a Recurring Basis The following tables present information about our financial assets that have been measured at fair value on a recurring basis as of September 30, 2019 and December 31, 2018 , and indicates the fair value hierarchy of the valuation inputs utilized to determine fair value (in thousands) : Fair Value Measurements as of Amortized Cost as of September 30, 2019 September 30, 2019 Level 1 Level 2 Level 3 Total Assets: Cash and cash equivalents: Cash $ 16,980 $ — $ — $ 16,980 $ 16,980 Money market funds 1,121 — — 1,121 1,121 Total cash and cash equivalents 18,101 — — 18,101 18,101 Restricted cash equivalents — 5,374 — 5,374 5,374 Total assets $ 18,101 $ 5,374 $ — $ 23,475 $ 23,475 Liabilities: Accrued royalties, fulfillment and other current liabilities Napster acquisition contingent consideration $ — $ — $ 2,746 $ 2,746 N/A Other long-term liabilities Napster acquisition contingent consideration — — 9,554 9,554 N/A Total liabilities $ — $ — $ 12,300 $ 12,300 N/A Fair Value Measurements as of Amortized Cost as of December 31, 2018 December 31, 2018 Level 1 Level 2 Level 3 Total Assets: Cash and cash equivalents: Cash $ 22,853 $ — $ — $ 22,853 $ 22,853 Money market funds 12,708 — — 12,708 12,708 Total cash and cash equivalents 35,561 — — 35,561 35,561 Short-term investments: Corporate notes and bonds — 24 — 24 24 Total short-term investments — 24 — 24 24 Restricted cash equivalents — 1,630 — 1,630 1,630 Warrants issued by Napster (included in Other assets) — — 865 865 — Total assets $ 35,561 $ 1,654 $ 865 $ 38,080 $ 37,215 Restricted cash equivalents as of September 30, 2019 and December 31, 2018 relate to cash pledged as collateral against letters of credit in connection with certain lease agreements and, as of September 30, 2019 , our recently entered into Loan and Security Agreement ("Loan Agreement") requires us to maintain a minimum balance of $3.5 million unrestricted cash at the bank. See Note 10 Notes Payable and Long-term debt for additional details. Accrued royalties, fulfillment and other current liabilities and Other long-term liabilities as of September 30, 2019 include the estimated fair value of the contingent consideration for the Napster acquisition, which was determined using a fair value measurement categorized within Level 3 of the fair value hierarchy. As discussed in Note 5 Acquisitions , after completion of the measurement period or in conjunction with changes in fair value unrelated to our preliminary estimate of fair value, this liability is adjusted quarterly to fair value through earnings. During the quarter and nine months ended September 30, 2019, we recorded the change in fair value of the contingent consideration of $0.4 million and $0.7 million , respectively, as an increase to the total liability on the consolidated balance sheet and as general and administrative expense on the consolidated statement of operations. Items Measured at Fair Value on a Non-recurring Basis Certain of our assets and liabilities are measured at estimated fair value on a non-recurring basis, using Level 3 inputs. These instruments are subject to fair value adjustments only in certain circumstances (for example, when there is evidence of impairment). During the nine months ended September 30, 2019 and 2018 , we did not record any impairments on those assets required to be measured at fair value on a non-recurring basis.

Other Intangible Assets

Other Intangible Assets	9 Months Ended
	Sep. 30, 2019
Goodwill and Intangible Assets Disclosure [Abstract]
Other Intangible Assets	Note 7 Other Intangible Assets Other intangible assets (in thousands): September 30, 2019 December 31, 2018 Gross Amount Accumulated Amortization Net Gross Amount Accumulated Amortization Net Amortizing intangible assets: Customer relationships $ 40,050 $ 31,075 $ 8,975 $ 30,993 $ 30,993 $ — Developed technology 29,446 24,591 4,855 24,446 24,446 — Patents, trademarks and tradenames 10,345 3,866 6,479 3,765 3,765 — Service contracts 5,344 5,344 — 5,538 5,512 26 Total $ 85,185 $ 64,876 $ 20,309 $ 64,742 $ 64,716 $ 26 Amortization expense related to other intangible assets during the quarters ended September 30, 2019 , and September 30, 2018 , was $1.1 million and insignificant. Amortization expense related to other intangible assets during the nine months ended September 30, 2019 , and September 30, 2018 , was $3.2 million and $0.3 million , respectively. Estimated future amortization of other intangible assets (in thousands): Future Amortization 2019 (Excluding the nine months ended September 30, 2019) $ 1,125 2020 4,501 2021 4,501 2022 2,617 2023 1,121 Thereafter 6,444 $ 20,309 See Note 5 Acquisitions for details on our acquisitions. No impairments of other intangible assets were recognized in either of the nine months ended September 30, 2019 or 2018 .

Goodwill

Goodwill	9 Months Ended
	Sep. 30, 2019
Goodwill and Intangible Assets Disclosure [Abstract]
Goodwill	Note 8 Goodwill The following table presents changes in goodwill (in thousands): Balance, December 31, 2018 $ 16,955 Increases due to current year acquisitions 48,474 Effects of foreign currency translation (275 ) Balance, September 30, 2019 $ 65,154 See Note 5 Acquisitions for details on our acquisitions and the impact to goodwill. The following table presents goodwill by segments (in thousands): September 30, Consumer Media $ 580 Mobile Services 1,959 Games 14,141 Napster 48,474 Total goodwill $ 65,154 No impairment of goodwill was recognized in either of the nine months ended September 30, 2019 or in 2018 .

Accrued and Other Current Liabi

Accrued and Other Current Liabilities	9 Months Ended
	Sep. 30, 2019
Payables and Accruals [Abstract]
Accrued and Other Current Liabilities	Note 9 Accrued royalties, fulfillment and other current liabilities Accrued royalties, fulfillment and other current liabilities (in thousands): September 30, 2019 December 31, 2018 Royalties and other fulfillment costs $ 70,371 $ 1,989 Employee compensation, commissions and benefits 6,750 4,444 Sales, VAT and other taxes payable 3,423 785 Operating Lease Liabilities - Current 4,804 — Other 7,181 4,094 Total accrued royalties, fulfillment and other current liabilities $ 92,529 $ 11,312 Included in royalties and other fulfillment costs are Napster's accrued music royalties totaling $68.7 million at September 30, 2019. Napster’s agreements and arrangements with rights holders for the content used in its business are complex and the determination of royalty accruals involves significant judgments, assumptions, and estimates of the amounts to be paid. The variables involved in determining royalty accruals include unmatched royalty accruals, revenue to be recognized, the type of content used and the country it is used in, outstanding royalty audits, and identification of appropriate license holders, among other variables. In addition, some rights holders have allowed the use of their content while negotiations of the terms and conditions are ongoing. In certain jurisdictions, rights holders have several years to claim royalties for musical composition. While Napster bases its estimates on historical experience and on various assumptions that management believes to be reasonable under the circumstances, actual results may differ materially from these estimates in the event of modified assumptions or conditions. Related to Napster's accrued music royalties are amounts that are advanced to certain music publishers for royalty amounts that have been agreed as being owed, but for which the underlying rights holder have not yet been specifically matched. These prepaid royalty amounts totaling $13.5 million at September 30, 2019 are included in Prepaid expenses and other current assets on the unaudited condensed consolidated balance sheets. When these amounts are ultimately matched and invoiced to Napster, the prepaid royalty amount and the related accrued royalty liability are offset on the unaudited condensed consolidated balance sheets.

Notes Payable and long-term deb

Notes Payable and long-term debt	9 Months Ended
	Sep. 30, 2019
Related Party Transactions [Abstract]
Debt	Note 10 Notes Payable and Long-term debt In August 2019, RealNetworks and Napster entered into a Loan and Security Agreement (Loan Agreement) with a third-party financial institution. Under the terms of the Loan Agreement, the bank extended a revolving line of credit not to exceed $10 million in the aggregate. Available advances on the revolving line of credit, which will be used for working capital and general corporate purposes, are based on a borrowing base that comprises accounts receivable and direct to consumer deposits. Borrowings under the Loan Agreement are secured by a first priority security interest in the assets of RealNetworks and Napster. Advances bear interest at a rate equal to one-half of one percent point ( 0.5% ) above the greater of the prime rate or 5.5% , with monthly payments of interest only and principal due at the end of the two-year term. The Loan Agreement contains customary covenants, including financial covenants, minimum EBITDA levels, and maintaining a minimum balance of $3.5 million unrestricted cash at the bank. As of September 30, 2019, RealNetworks drew down $3.9 million from the revolving line of credit, which was loaned to Napster bearing interest and fees commensurate with our costs. See Note 18 Related Party Transactions for additional details. We paid and capitalized $0.6 million of financing fees to enter into the revolving line of credit, and the financing fees will be amortized over the term of the debt. The current and non-current unamortized fees were $0.3 million and $0.2 million at September 30, 2019, respectively, and are included in Deferred costs, current and non-current on our condensed consolidated balance sheets. In 2017, Napster entered into a Non-Recourse Purchase of Eligible Receivables Agreement (NRP Agreement) with an international bank (Purchaser) in which Napster will sell and assign on a continuing basis its eligible receivables to the Purchaser in return for 90% of the receivables upfront, up to a maximum amount of $15.0 million in advances. The interest rate is 2.25% above the 1-month-EURIBOR with a minimum 0.0% rate applying to the 1-month-EURIBOR rate. As of September 30, 2019 , Napster had $3.6 million borrowings outstanding with an interest rate of 2.25% . In 2015, Napster entered into a Loan and Security Agreement (Revolver LSA) with a bank. The available borrowing on the Revolver LSA was based upon Napster's accounts receivable and direct to consumer subscription deposits. The Revolver LSA had a maximum available balance of $7.0 million . The Revolver LSA matured and the loan balance was paid in full on April 30, 2019. The Revolver LSA required Napster to maintain a balance of unrestricted cash at the bank of not less than $1.5 million plus 5% of the total amount outstanding under the NRP Agreement. As the loan was paid off on April 30, 2019, this amount is no longer restricted.

Restructuring Charges

Restructuring Charges	9 Months Ended
	Sep. 30, 2019
Restructuring and Related Activities [Abstract]
Restructuring Charges	Note 11 Restructuring Charges Restructuring and other charges in 2019 and 2018 consist of costs associated with the ongoing reorganization of our business operations and expense re-alignment efforts, which primarily relate to severance costs due to workforce reductions. Asset related and other costs primarily relate to the termination of certain contracts in the second quarter of 2019 as we continue to shift focus onto free-to-play games that offer in-game purchases of virtual goods and away from the premium mobile games that require a one-time purchase. Restructuring charges are as follows (in thousands): Employee Separation Costs Asset Related and Other Costs Total Costs incurred and charged to expense for the nine months ended September 30, 2019 $ 1,050 $ 537 $ 1,587 Costs incurred and charged to expense for the nine months ended September 30, 2018 $ 1,320 $ — $ 1,320 Changes to the accrued restructuring liability (which is included in Accrued royalties, fulfillment and other current liabilities) for 2019 are as follows (in thousands): Employee Separation Costs Asset Related and Other Costs Total Accrued liability at December 31, 2018 $ 755 $ — $ 755 Costs incurred and charged to expense for the nine months ended September 30, 2019, excluding noncash charges 1,050 174 1,224 Cash payments (1,292 ) — (1,292 ) Accrued liability at September 30, 2019 $ 513 $ 174 $ 687

Income Taxes

Income Taxes	9 Months Ended
	Sep. 30, 2019
Income Tax Disclosure [Abstract]
Income Taxes	Note 12 Income Taxes As of September 30, 2019 , RealNetworks has $4.5 million in uncertain tax positions, of which $4.1 million of unrecognized tax positions was recorded through purchase accounting on January 18, 2019 as a result of the acquisition of Napster. We do not anticipate that the total amount of unrecognized tax benefits will significantly change within the next twelve months. We file numerous consolidated and separate income tax returns in the U.S. including federal, state and local, as well as foreign jurisdictions. With few exceptions, we are no longer subject to U.S. federal income tax examinations for tax years before 2013 or state, local, or foreign income tax examinations for years before 1993. We are currently under audit by various states and foreign jurisdictions for certain tax years subsequent to 1993.

Earnings (Loss) Per Share

Earnings (Loss) Per Share	9 Months Ended
	Sep. 30, 2019
Earnings Per Share [Abstract]
Earnings (Loss) Per Share	Note 13 Income (Loss) Per Share Basic net income (loss) per share (EPS) is computed by dividing net income (loss) attributable to RealNetworks by the weighted average number of common shares outstanding during the period. Diluted EPS is computed by dividing net income (loss) attributable to RealNetworks 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 Nine Months Ended 2019 2018 2019 2018 Net income (loss) attributable to RealNetworks $ (5,968 ) $ (5,977 ) $ (13,637 ) $ (18,085 ) Weighted average common shares outstanding used to compute basic EPS 38,062 37,618 37,944 37,549 Dilutive effect of stock based awards — — — — Weighted average common shares outstanding used to compute diluted EPS 38,062 37,618 37,944 37,549 Basic EPS attributable to RealNetworks $ (0.16 ) $ (0.16 ) $ (0.36 ) $ (0.48 ) Diluted EPS attributable to RealNetworks $ (0.16 ) $ (0.16 ) $ (0.36 ) $ (0.48 ) During the quarter and nine months ended September 30, 2019 , 8.0 million and 7.6 million shares of common stock, respectively, of potentially issuable shares from stock awards were excluded from the calculation of diluted EPS because of their antidilutive effect. During the quarter and nine months ended September 30, 2018, 6.7 million and 6.3 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.

Leases

Leases	9 Months Ended
	Sep. 30, 2019
Leases [Abstract]
Leases	Note 14 Leases We have commitments for future payments related to office facilities leases. We determine if an arrangement is a lease at inception. Operating leases are included in Operating lease assets, Other current liabilities, and Long-term lease liabilities on our consolidated balance sheets. Leases with an initial term of 12 months or less are not recorded on the balance sheet; we recognize lease expense for these leases on a straight-line basis over the lease term. Operating lease assets and operating lease liabilities are recognized based on the present value of the future minimum lease payments over the lease term at commencement date. As our leases do not provide an implicit rate, we use our estimated incremental borrowing rate based on the information available at commencement date in determining the present value of future payments. Operating lease assets also exclude lease incentives and initial direct costs incurred. Some of our leases include options to extend or terminate the lease. Our leases generally include one or more options to renew; however, the exercise of lease renewal options is at our sole discretion. For nearly all of our operating leases, upon adoption of the new guidance, we have not assumed any options to extend will be exercised as part of our calculation of the lease liability. Lease expense for minimum lease payments is recognized on a straight-line basis over the lease term. We have operating leases for office space and data centers with remaining lease terms of 1 year to 5 years. Details related to lease expense and supplemental cash flow were as follows (in thousands): Quarter Ended Nine Months Ended 2019 2019 Operating lease expense $ 1,396 $ 4,199 Variable lease expense 165 676 Sublease income (511 ) (1,497 ) Net lease expense $ 1,050 $ 3,378 Operating cash outflows for lease liabilities $ 1,274 $ 4,147 Details related to lease term and discount rate were as follows: September 30, 2019 Weighted-average remaining lease term (in years) 4 years Weighted-average discount rate 5.14 % Future minimum lease payments as of September 30, 2019 were as follows (in thousands): Operating Leases 2019 (Excluding the nine months ended September 30, 2019) $ 1,481 2020 4,922 2021 3,266 2022 2,422 2023 2,347 Thereafter 1,634 Total minimum payments (a) 16,072 Less: Imputed interest 1,782 Present value of total minimum payments (b) $ 14,290 (a) Total minimum payments exclude executory costs, inclusive of insurance, maintenance, and taxes, of $6.5 million ; minimum payments also have not been reduced by sublease rentals of $5.8 million due in the future under noncancelable subleases. (b) $9.5 million is included in Long-term lease liabilities and $4.8 million is included in Accrued royalties, fulfillment, and other current liabilities on the condensed consolidated balance sheets. As of December 31, 2018, future minimum lease payments were $15.9 million in the aggregate, which consisted of the following: $3.7 million in 2019; $3.0 million in 2020; $2.7 million in 2021; $2.4 million in 2022; $2.3 million in 2023; and $1.6 million thereafter.

Commitments and Contingencies

Commitments and Contingencies	9 Months Ended
	Sep. 30, 2019
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	Note 15 Commitments and Contingencies We have been in the past and could become in the future subject to legal proceedings, governmental investigations, and claims in the ordinary course of business, including employment claims, contract-related claims, and claims of alleged infringement of third-party patents, trademarks, and other intellectual property rights. Such claims, even if not meritorious, could force us to expend significant financial and managerial resources. In addition, given the broad distribution of some of our consumer products, any individual claim related to those products could give rise to liabilities that may be material to us. In the event of a determination adverse to us, we may incur substantial monetary liability, and/or be required to change our business practices. Either of these could have a material adverse effect on our consolidated financial statements. In 2017, we entered into an arrangement whereby we may be required to guarantee up to $2.8 million of Napster's outstanding indebtedness on their revolving credit facility. At that time and as a result of the guaranty, RealNetworks recognized previously suspended Napster losses up to the full $2.8 million guaranty in our consolidated statement of operations and as a Commitment to Napster in our consolidated balance sheets. Given the controlling interest RealNetworks acquired in Napster in the first quarter of 2019, we have eliminated the previously recorded guaranty from RealNetworks' balance sheet in consolidation. RealNetworks has not been required to pay any portion of this commitment, and, as discussed in Note 10 Notes Payable and Long-term debt , Napster fully repaid this loan balance on April 30, 2019, thus releasing RealNetworks' previously made guaranty. In March 2016, Napster was notified of a putative consumer class action lawsuit relating to an alleged failure to pay so-called “mechanical royalties” on behalf of the plaintiffs and “other similarly-situated holders of mechanical rights in copyrighted musical works.” On April 7, 2017, the plaintiffs and Napster agreed to settlement terms during a mediation session. The long form Settlement Agreement was executed effective on January 16, 2019. The damages payable under the Settlement Agreement will be calculated on a claims made basis, subject to an overall maximum of $10.0 million . We have not recorded an accrual related to this settlement as of September 30, 2019 as the amount payable is not reasonably estimable. In May 2019, public notice was posted about the settlement informing purported class members that they can make claims or object to the settlement. The claims period ends on December 31, 2019, on which date (or shortly thereafter), Napster expects to know the total amount of damages payable in respect to validly made claims. Damages for valid claims are expected to be paid in the second quarter of 2020.

Guarantees

Guarantees	9 Months Ended
	Sep. 30, 2019
Guarantees [Abstract]
Guarantees	Note 16 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 the ordinary course of business, Napster enters into agreements with various content providers that guarantee a minimum amount of royalty payments in a given period. These minimum payments are generally based on targets and, based on our historical experience and expectations under relevant contracts, we anticipate that actual royalty accruals and payments will exceed minimum guarantees and, accordingly, we do not maintain accruals for these minimum guarantees. In relation to certain patents and other technology assets we sold to Intel in the second quarter of 2012, we have specific obligations to indemnify Intel for breaches of the representations and warranties that we made and covenants that we agreed to in the asset purchase agreement for certain potential future intellectual property infringement claims brought by third parties against Intel. The amount of any potential liabilities related to our indemnification obligations to Intel will not be determined until a claim has been made, but we are obligated to indemnify Intel up to the amount of the gross purchase price that we received in the sale.

Segment Information

Segment Information	9 Months Ended
	Sep. 30, 2019
Segment Reporting [Abstract]
Segment Information	Note 17 Segment Information We manage our business and report revenue and operating income (loss) in four 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 SaaS services and our integrated RealTimes® platform which is sold to mobile carriers; (3) Games, which includes all our games-related businesses, including sales of mobile games, games licenses, in-game virtual goods, subscription services, and advertising on games and social network sites; and (4) Napster, which includes our on-demand music streaming and music services. RealNetworks allocates to its Consumer Media, Mobile Services and Games reportable segments certain corporate expenses which are directly attributable to supporting these 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 these businesses, are reported as corporate items. These corporate items also include restructuring charges and stock compensation charges. As stated in Note 5 Acquisitions , Napster is operating as an independent company and includes all their corporate expenses in their segment results, and RealNetworks does not allocate any expenses to the Napster segment. RealNetworks reports four reportable segments based on factors such as how we manage our operations and how the 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 nine months ended September 30, 2019 and 2018 (in thousands): Consumer Media Quarter Ended Nine Months Ended 2019 2018 2019 2018 Revenue $ 3,632 $ 4,733 $ 8,738 $ 14,100 Cost of revenue 705 955 2,341 2,976 Gross profit 2,927 3,778 6,397 11,124 Operating expenses 2,692 3,448 8,688 10,805 Operating income (loss) $ 235 $ 330 $ (2,291 ) $ 319 Mobile Services Quarter Ended Nine Months Ended 2019 2018 2019 2018 Revenue $ 6,895 $ 7,348 $ 20,831 $ 22,771 Cost of revenue 1,721 2,052 5,634 6,502 Gross profit 5,174 5,296 15,197 16,269 Operating expenses 7,143 6,825 22,142 21,160 Operating income (loss) $ (1,969 ) $ (1,529 ) $ (6,945 ) $ (4,891 ) Games Quarter Ended Nine Months Ended 2019 2018 2019 2018 Revenue $ 7,164 $ 5,498 $ 18,922 $ 16,082 Cost of revenue 1,934 1,228 5,259 4,501 Gross profit 5,230 4,270 13,663 11,581 Operating expenses 5,151 5,447 15,476 15,459 Operating income (loss) $ 79 $ (1,177 ) $ (1,813 ) $ (3,878 ) Napster Quarter Ended Nine Months Ended 2019 2018 2019 2018 Revenue $ 27,302 $ — $ 80,222 $ — Cost of revenue 21,986 — 65,408 — Gross profit 5,316 — 14,814 — Operating expenses 6,472 — 18,642 — Operating income (loss) $ (1,156 ) $ — $ (3,828 ) $ — Corporate Quarter Ended Nine Months Ended 2019 2018 2019 2018 Cost of revenue $ (68 ) $ 4 $ (212 ) $ 21 Operating expenses 3,522 2,548 11,895 8,244 Operating income (loss) $ (3,454 ) $ (2,552 ) $ (11,683 ) $ (8,265 ) 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 Nine Months Ended 2019 2018 2019 2018 United States $ 22,015 $ 9,026 $ 62,307 $ 28,106 Europe 16,425 3,005 48,906 9,040 Rest of the World 6,553 5,548 17,500 15,807 Total net revenue $ 44,993 $ 17,579 $ 128,713 $ 52,953 Long-lived assets (consisting of goodwill, equipment, software, leasehold improvements, operating lease assets, and other intangible assets) by geographic region (in thousands) are as follows: September 30, December 31, United States $ 88,043 $ 11,823 Europe 10,359 6,761 Rest of the World 2,497 1,151 Total long-lived assets $ 100,899 $ 19,735

Related Party Transactions

Related Party Transactions	9 Months Ended
	Sep. 30, 2019
Related Party Transactions [Abstract]
Related Party Transactions	Note 18 Related Party Transactions As described in Note 5 Acquisitions , on January 18, 2019, RealNetworks acquired an additional 42% interest in Rhapsody International, Inc., (doing business as Napster), bringing our aggregate ownership interest to 84% of Napster's outstanding equity, thus giving RealNetworks a majority voting interest in Napster. Following this acquisition of a controlling interest, we consolidate Napster's financial results into our financial statements for fiscal periods beginning with our first quarter of 2019. Rhapsody America LLC was initially formed in 2007 as a joint venture between RealNetworks and MTV Networks, a division of Viacom International, Inc., to own and operate a business-to-consumer digital audio music service originally branded as Rhapsody. The service has been significantly expanded and was re-branded in 2016 as Napster. Following certain restructuring transactions effective March 31, 2010, we began accounting for the 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. Although we now consolidate Napster for reporting purposes, our convertible preferred stock and the related rights remain contractually binding instruments between RealNetworks and Napster. In December 2016, RealNetworks and the other then-owner of 42% of Napster each entered into an agreement to loan up to $5.0 million to Napster for general operating purposes, which loans were fully funded as of the end of January 2017 for an aggregate of $10.0 million . Included in RealNetworks' January 2019 acquisition of the additional 42% interest in Napster, RealNetworks assumed the seller's $5.0 million note, resulting in RealNetworks holding $10.0 million of notes receivable from Napster. The terms of the notes were modified subsequent to the original December 2016 execution, including a provision, effective July 2018, that requires repayment at the greater of (a) principal plus accrued interest at an annual rate of 15% or (b) a preference of three times the principal amount. In May 2019, RealNetworks extended a short-term loan to Napster in the principal amount of $1.1 million . In August 2019, RealNetworks established a two-year term on this short-term loan and, as discussed in Note 10 Notes Payable and Long-term debt , loaned Napster an additional $3.9 million and charged Napster for associated fees. As a result, the principal amount on this two-year note is $5.4 million . Both the two-year note and the $10.0 million loan are subordinate to RealNetworks' and Napster's third party debt. In each of February 2015 and February 2017, Napster issued warrants to purchase shares of its common stock to each of RealNetworks and the other then-owner of 42% of Napster. The warrants have a 10 -year contractual term and were issued as compensation for past services provided by these two significant stockholders of Napster. As part of RealNetworks' January 2019 acquisition of the additional 42% interest in Napster, RealNetworks assumed the warrants held by the seller. Upon our acquisition of a controlling interest in Napster, the notes and warrants were effectively settled and eliminated in our consolidated financial statements as they represent preexisting relationships between RealNetworks and Napster. However, the notes and warrants remain contractually binding instruments between RealNetworks and Napster.

Description of Business and S_2

Description of Business and Summary of Significant Accounting Policies (Policies)	9 Months Ended
	Sep. 30, 2019
Accounting Policies [Abstract]
Description of Business	Description of Business. RealNetworks, Inc. and subsidiaries is a leading global provider of network-delivered digital media applications and services that make it easy to manage, play, and share digital media. The Company also develops and markets software products and services that enable the creation, distribution, and consumption of digital media, including audio and video. Our Napster music business, which we acquired on January 18, 2019, offers a comprehensive set of digital music products and services designed to provide consumers with broad access to digital music. For more information on Napster, see Note 5 Acquisitions . 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 and cash flow. 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 subsidiaries in which it has a more than 50% voting interest. Noncontrolling interests primarily represent third-party ownership in the equity of Napster and are reflected separately in the Company’s financial statements. Intercompany balances and transactions have been eliminated in consolidation. The unaudited condensed consolidated financial statements reflect all adjustments, consisting only of normal, recurring adjustments that, in the opinion of management, are necessary for a fair presentation of the results of operations for the periods presented. Operating results for the quarter and nine months ended September 30, 2019 are not necessarily indicative of the results that may be expected for any subsequent period or for the year ending December 31, 2019 . 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, 2018 (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.
Revenue	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. Napster revenue arrangements include subscription services to the Napster music streaming service sold either directly to end users (direct to consumer) or through partners (business to business), who are generally telecommunications companies, that bundle the subscription with their own services or collect payment for the stand-alone subscriptions from their end customers. Napster also sells subscriptions to third parties to provide access to the Napster platform that is typically embedded in the third party's branded or co-branded service. Such subscriptions are included in the business to business sales channel. For services sold through third parties to end customers, we evaluate the presentation of revenue on a gross or net basis based on whether we control the service provided to the end-user and are the principal (i.e. “gross”), or we arrange for other parties to provide the service to the end-user and are an agent (i.e. “net”). In our Napster business to business revenue stream, we generally operate as a principal in arrangements with end customers as we maintain control over the service prior to being transferred to the end customer. Certain business to business customer arrangements include variable consideration based on usage. We estimate variable consideration as part of the total transaction price that is allocated to performance obligations, or distinct service periods within a performance obligation, on a relative standalone selling price basis. Revenues related to Napster subscription services are recognized ratably over the contract period, typically 30 days. Direct to consumer subscriptions are paid in advance, typically on a monthly basis. Subscription services offered to businesses are invoiced on a monthly basis and the timing of payment generally does not vary significantly from the timing of invoice.
Segments	We manage our business and report revenue and operating income (loss) in four 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 SaaS services and our integrated RealTimes® platform which is sold to mobile carriers; (3) Games, which includes all our games-related businesses, including sales of mobile games, games licenses, in-game virtual goods, subscription services, and advertising on games and social network sites; and (4) Napster, which includes our on-demand music streaming and music services. RealNetworks allocates to its Consumer Media, Mobile Services and Games reportable segments certain corporate expenses which are directly attributable to supporting these 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 these businesses, are reported as corporate items. These corporate items also include restructuring charges and stock compensation charges. As stated in Note 5 Acquisitions , Napster is operating as an independent company and includes all their corporate expenses in their segment results, and RealNetworks does not allocate any expenses to the Napster segment. RealNetworks reports four reportable segments based on factors such as how we manage our operations and how the 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 (Tables)

Revenue Recognition (Tables)	9 Months Ended
	Sep. 30, 2019
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 September 30, 2019 Nine Months Ended September 30, 2019 Consumer Media Mobile Services Games Napster Consumer Media Mobile Services Games Napster Business Line Software License $ 1,987 $ 888 $ — $ — $ 3,666 $ 2,444 $ — $ — Subscription Services 1,028 6,007 3,056 27,302 3,156 18,387 9,114 80,222 Product Sales 207 — 3,078 — 632 — 7,243 — Advertising and Other 410 — 1,030 — 1,284 — 2,565 — Total $ 3,632 $ 6,895 $ 7,164 $ 27,302 $ 8,738 $ 20,831 $ 18,922 $ 80,222 Quarter Ended September 30, 2018 Nine Months Ended September 30, 2018 Consumer Media Mobile Services Games Napster Consumer Media Mobile Services Games Napster Business Line Software License $ 2,746 $ 520 $ — $ — $ 7,891 $ 2,324 $ — $ — Subscription Services 1,232 6,828 2,744 — 3,742 20,447 8,126 — Product Sales 281 — 2,280 — 920 — 6,635 — Advertising and Other 474 — 474 — 1,547 — 1,321 — Total $ 4,733 $ 7,348 $ 5,498 $ — $ 14,100 $ 22,771 $ 16,082 $ — The following table presents our disaggregated revenue by sales channel (in thousands): Quarter Ended September 30, 2019 Nine Months Ended September 30, 2019 Consumer Media Mobile Services Games Napster Consumer Media Mobile Services Games Napster Sales Channel Business to Business $ 2,398 $ 6,784 $ 1,362 $ 13,084 $ 4,951 $ 20,482 $ 3,513 $ 38,983 Direct to Consumer 1,234 111 5,802 14,218 3,787 349 15,409 41,239 Total $ 3,632 $ 6,895 $ 7,164 $ 27,302 $ 8,738 $ 20,831 $ 18,922 $ 80,222 Quarter Ended September 30, 2018 Nine Months Ended September 30, 2018 Consumer Media Mobile Services Games Napster Consumer Media Mobile Services Games Napster Sales Channel Business to Business $ 3,220 $ 7,209 $ 806 $ — $ 9,438 $ 22,312 $ 2,393 $ — Direct to Consumer 1,513 139 4,692 — 4,662 459 13,689 — Total $ 4,733 $ 7,348 $ 5,498 $ — $ 14,100 $ 22,771 $ 16,082 $ — Consumer Media Quarter Ended Nine Months Ended 2019 2018 2019 2018 Revenue $ 3,632 $ 4,733 $ 8,738 $ 14,100 Cost of revenue 705 955 2,341 2,976 Gross profit 2,927 3,778 6,397 11,124 Operating expenses 2,692 3,448 8,688 10,805 Operating income (loss) $ 235 $ 330 $ (2,291 ) $ 319 Mobile Services Quarter Ended Nine Months Ended 2019 2018 2019 2018 Revenue $ 6,895 $ 7,348 $ 20,831 $ 22,771 Cost of revenue 1,721 2,052 5,634 6,502 Gross profit 5,174 5,296 15,197 16,269 Operating expenses 7,143 6,825 22,142 21,160 Operating income (loss) $ (1,969 ) $ (1,529 ) $ (6,945 ) $ (4,891 ) Games Quarter Ended Nine Months Ended 2019 2018 2019 2018 Revenue $ 7,164 $ 5,498 $ 18,922 $ 16,082 Cost of revenue 1,934 1,228 5,259 4,501 Gross profit 5,230 4,270 13,663 11,581 Operating expenses 5,151 5,447 15,476 15,459 Operating income (loss) $ 79 $ (1,177 ) $ (1,813 ) $ (3,878 ) Napster Quarter Ended Nine Months Ended 2019 2018 2019 2018 Revenue $ 27,302 $ — $ 80,222 $ — Cost of revenue 21,986 — 65,408 — Gross profit 5,316 — 14,814 — Operating expenses 6,472 — 18,642 — Operating income (loss) $ (1,156 ) $ — $ (3,828 ) $ — Corporate Quarter Ended Nine Months Ended 2019 2018 2019 2018 Cost of revenue $ (68 ) $ 4 $ (212 ) $ 21 Operating expenses 3,522 2,548 11,895 8,244 Operating income (loss) $ (3,454 ) $ (2,552 ) $ (11,683 ) $ (8,265 )

Stock-Based Compensation (Table

Stock-Based Compensation (Tables)	9 Months Ended
	Sep. 30, 2019
Share-based Payment Arrangement [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 Nine Months Ended 2019 2018 2019 2018 Total stock-based compensation expense $ 503 $ 499 $ 2,420 $ 2,113
Weighted-Average Assumptions Used to Determine Fair Value of Options Granted	The fair value of RealNetworks options granted determined using the Black-Scholes model used the following weighted-average assumptions: Quarter Ended Nine Months Ended 2019 2018 2019 2018 Expected dividend yield 0 % 0 % 0 % 0 % Risk-free interest rate 1.71 % 2.78 % 2.16 % 2.69 % Expected life (years) 3.8 3.8 4.1 3.9 Volatility 41 % 35 % 41 % 35 %

Acquisitions (Tables)

Acquisitions (Tables)	9 Months Ended
	Sep. 30, 2019
Business Combinations [Abstract]
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed	The following table summarizes the preliminary allocation of the total consideration to the estimated fair values of the assets acquired and liabilities assumed as of January 18, 2019 (in thousands): Consideration, at estimated fair value: Cash $ 1,000 Contingent consideration 11,600 RealNetworks' preexisting 42% equity interest in Napster 2,700 Effective settlement of Napster debt and warrants, held by RealNetworks 6,408 Total consideration $ 21,708 Assets acquired and liabilities assumed, at estimated fair value: Cash and cash equivalents $ 10,138 Accounts receivable 20,838 Prepaid expenses and other current assets 12,879 Restricted cash 2,322 Equipment, software and leasehold improvements 474 Operating lease assets 2,314 Other long-term assets 77 Deferred tax assets, net 5,942 Intangible assets 23,700 Goodwill 48,474 Total assets acquired 127,158 Accounts payable 937 Accrued royalties and fulfillment 71,980 Accrued and other current liabilities 7,475 Deferred revenue, current portion 3,600 Notes payable 12,115 Deferred tax liabilities, net 6,061 Long-term lease liabilities 1,197 Other long-term liabilities 1,515 Total liabilities assumed 104,880 Total net assets acquired 22,278 Noncontrolling interests 570 Net assets acquired $ 21,708
Schedule of Finite-Lived Intangible Assets Acquired as Part of Business Combination	Acquired intangible assets have a total weighted average useful life of approximately 8 years, are being amortized using the straight line method, and are comprised of the following (in thousands): Intangible category Estimated fair value Method used to calculate fair value Estimated remaining useful life Trade name and trademarks $ 6,800 Relief-from-royalty 15 years Developed technology 5,900 Excess earnings 4 years Customer relationships 5,900 Cost-to-replace 3 years Partner relationships 5,100 Distributor method 8 years Total $ 23,700
Business Acquisition, Pro Forma Information	The following table provides the supplemental pro forma revenue and net results of the combined entity had the acquisition date of Napster been the first day of our first quarter of 2018 rather than during our first quarter of 2019 (in thousands): Quarter Ended - Pro Forma (Unaudited) Nine Months Ended - Pro Forma (Unaudited) 2019 2018 2019 2018 Net revenue $ 45,074 $ 52,888 $ 135,267 $ 165,033 Net income (loss) attributable to RealNetworks (1) (5,386 ) (3,748 ) (23,358 ) (1,453 ) (1) The pro forma net earnings attributable to RealNetworks for the quarter ended September 30, 2018 include $0.1 million of transaction costs, and for the nine months ended September 30, 2018, pro forma net earnings attributable to RealNetworks include the acquisition related gain of $12.3 million and $1.3 million of transaction costs.

Fair Value Measurements (Tables

Fair Value Measurements (Tables)	9 Months Ended
	Sep. 30, 2019
Fair Value Disclosures [Abstract]
Financial Assets Measured at Fair Value on a Recurring Basis	The following tables present information about our financial assets that have been measured at fair value on a recurring basis as of September 30, 2019 and December 31, 2018 , and indicates the fair value hierarchy of the valuation inputs utilized to determine fair value (in thousands) : Fair Value Measurements as of Amortized Cost as of September 30, 2019 September 30, 2019 Level 1 Level 2 Level 3 Total Assets: Cash and cash equivalents: Cash $ 16,980 $ — $ — $ 16,980 $ 16,980 Money market funds 1,121 — — 1,121 1,121 Total cash and cash equivalents 18,101 — — 18,101 18,101 Restricted cash equivalents — 5,374 — 5,374 5,374 Total assets $ 18,101 $ 5,374 $ — $ 23,475 $ 23,475 Liabilities: Accrued royalties, fulfillment and other current liabilities Napster acquisition contingent consideration $ — $ — $ 2,746 $ 2,746 N/A Other long-term liabilities Napster acquisition contingent consideration — — 9,554 9,554 N/A Total liabilities $ — $ — $ 12,300 $ 12,300 N/A Fair Value Measurements as of Amortized Cost as of December 31, 2018 December 31, 2018 Level 1 Level 2 Level 3 Total Assets: Cash and cash equivalents: Cash $ 22,853 $ — $ — $ 22,853 $ 22,853 Money market funds 12,708 — — 12,708 12,708 Total cash and cash equivalents 35,561 — — 35,561 35,561 Short-term investments: Corporate notes and bonds — 24 — 24 24 Total short-term investments — 24 — 24 24 Restricted cash equivalents — 1,630 — 1,630 1,630 Warrants issued by Napster (included in Other assets) — — 865 865 — Total assets $ 35,561 $ 1,654 $ 865 $ 38,080 $ 37,215

Other Intangible Assets (Tables

Other Intangible Assets (Tables)	9 Months Ended
	Sep. 30, 2019
Goodwill and Intangible Assets Disclosure [Abstract]
Other Intangible Assets	Other intangible assets (in thousands): September 30, 2019 December 31, 2018 Gross Amount Accumulated Amortization Net Gross Amount Accumulated Amortization Net Amortizing intangible assets: Customer relationships $ 40,050 $ 31,075 $ 8,975 $ 30,993 $ 30,993 $ — Developed technology 29,446 24,591 4,855 24,446 24,446 — Patents, trademarks and tradenames 10,345 3,866 6,479 3,765 3,765 — Service contracts 5,344 5,344 — 5,538 5,512 26 Total $ 85,185 $ 64,876 $ 20,309 $ 64,742 $ 64,716 $ 26
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense	Estimated future amortization of other intangible assets (in thousands): Future Amortization 2019 (Excluding the nine months ended September 30, 2019) $ 1,125 2020 4,501 2021 4,501 2022 2,617 2023 1,121 Thereafter 6,444 $ 20,309

Goodwill (Tables)

Goodwill (Tables)	9 Months Ended
	Sep. 30, 2019
Goodwill and Intangible Assets Disclosure [Abstract]
Changes in Goodwill	The following table presents changes in goodwill (in thousands): Balance, December 31, 2018 $ 16,955 Increases due to current year acquisitions 48,474 Effects of foreign currency translation (275 ) Balance, September 30, 2019 $ 65,154
Goodwill Assigned by Segments	The following table presents goodwill by segments (in thousands): September 30, Consumer Media $ 580 Mobile Services 1,959 Games 14,141 Napster 48,474 Total goodwill $ 65,154

Accrued and Other Current Lia_2

Accrued and Other Current Liabilities (Tables)	9 Months Ended
	Sep. 30, 2019
Payables and Accruals [Abstract]
Accrued and Other Liabilities	Accrued royalties, fulfillment and other current liabilities (in thousands): September 30, 2019 December 31, 2018 Royalties and other fulfillment costs $ 70,371 $ 1,989 Employee compensation, commissions and benefits 6,750 4,444 Sales, VAT and other taxes payable 3,423 785 Operating Lease Liabilities - Current 4,804 — Other 7,181 4,094 Total accrued royalties, fulfillment and other current liabilities $ 92,529 $ 11,312

Restructuring Charges (Tables)

Restructuring Charges (Tables)	9 Months Ended
	Sep. 30, 2019
Restructuring and Related Activities [Abstract]
Schedule of Restructuring Charges by Type of Cost	Restructuring charges are as follows (in thousands): Employee Separation Costs Asset Related and Other Costs Total Costs incurred and charged to expense for the nine months ended September 30, 2019 $ 1,050 $ 537 $ 1,587 Costs incurred and charged to expense for the nine months ended September 30, 2018 $ 1,320 $ — $ 1,320 Changes to the accrued restructuring liability (which is included in Accrued royalties, fulfillment and other current liabilities) for 2019 are as follows (in thousands): Employee Separation Costs Asset Related and Other Costs Total Accrued liability at December 31, 2018 $ 755 $ — $ 755 Costs incurred and charged to expense for the nine months ended September 30, 2019, excluding noncash charges 1,050 174 1,224 Cash payments (1,292 ) — (1,292 ) Accrued liability at September 30, 2019 $ 513 $ 174 $ 687

Earnings (Loss) Per Share (Tabl

Earnings (Loss) Per Share (Tables)	9 Months Ended
	Sep. 30, 2019
Earnings Per Share [Abstract]
Calculation of Basic and Diluted Earnings Per Share	Basic and diluted EPS (in thousands, except per share amounts): Quarter Ended Nine Months Ended 2019 2018 2019 2018 Net income (loss) attributable to RealNetworks $ (5,968 ) $ (5,977 ) $ (13,637 ) $ (18,085 ) Weighted average common shares outstanding used to compute basic EPS 38,062 37,618 37,944 37,549 Dilutive effect of stock based awards — — — — Weighted average common shares outstanding used to compute diluted EPS 38,062 37,618 37,944 37,549 Basic EPS attributable to RealNetworks $ (0.16 ) $ (0.16 ) $ (0.36 ) $ (0.48 ) Diluted EPS attributable to RealNetworks $ (0.16 ) $ (0.16 ) $ (0.36 ) $ (0.48 )

Leases (Tables)

Leases (Tables)	9 Months Ended
	Sep. 30, 2019
Leases [Abstract]
Lease, Cost	Details related to lease expense and supplemental cash flow were as follows (in thousands): Quarter Ended Nine Months Ended 2019 2019 Operating lease expense $ 1,396 $ 4,199 Variable lease expense 165 676 Sublease income (511 ) (1,497 ) Net lease expense $ 1,050 $ 3,378 Operating cash outflows for lease liabilities $ 1,274 $ 4,147
Lessee, Operating Lease, Disclosure	Details related to lease term and discount rate were as follows: September 30, 2019 Weighted-average remaining lease term (in years) 4 years Weighted-average discount rate 5.14 %
Lessee, Operating Lease, Liability, Maturity	Future minimum lease payments as of September 30, 2019 were as follows (in thousands): Operating Leases 2019 (Excluding the nine months ended September 30, 2019) $ 1,481 2020 4,922 2021 3,266 2022 2,422 2023 2,347 Thereafter 1,634 Total minimum payments (a) 16,072 Less: Imputed interest 1,782 Present value of total minimum payments (b) $ 14,290

Segment Information (Tables)

Segment Information (Tables)	9 Months Ended
	Sep. 30, 2019
Segment Reporting [Abstract]
Segment Results	Disaggregation of Revenue The following table presents our disaggregated revenue by source and segment (in thousands): Quarter Ended September 30, 2019 Nine Months Ended September 30, 2019 Consumer Media Mobile Services Games Napster Consumer Media Mobile Services Games Napster Business Line Software License $ 1,987 $ 888 $ — $ — $ 3,666 $ 2,444 $ — $ — Subscription Services 1,028 6,007 3,056 27,302 3,156 18,387 9,114 80,222 Product Sales 207 — 3,078 — 632 — 7,243 — Advertising and Other 410 — 1,030 — 1,284 — 2,565 — Total $ 3,632 $ 6,895 $ 7,164 $ 27,302 $ 8,738 $ 20,831 $ 18,922 $ 80,222 Quarter Ended September 30, 2018 Nine Months Ended September 30, 2018 Consumer Media Mobile Services Games Napster Consumer Media Mobile Services Games Napster Business Line Software License $ 2,746 $ 520 $ — $ — $ 7,891 $ 2,324 $ — $ — Subscription Services 1,232 6,828 2,744 — 3,742 20,447 8,126 — Product Sales 281 — 2,280 — 920 — 6,635 — Advertising and Other 474 — 474 — 1,547 — 1,321 — Total $ 4,733 $ 7,348 $ 5,498 $ — $ 14,100 $ 22,771 $ 16,082 $ — The following table presents our disaggregated revenue by sales channel (in thousands): Quarter Ended September 30, 2019 Nine Months Ended September 30, 2019 Consumer Media Mobile Services Games Napster Consumer Media Mobile Services Games Napster Sales Channel Business to Business $ 2,398 $ 6,784 $ 1,362 $ 13,084 $ 4,951 $ 20,482 $ 3,513 $ 38,983 Direct to Consumer 1,234 111 5,802 14,218 3,787 349 15,409 41,239 Total $ 3,632 $ 6,895 $ 7,164 $ 27,302 $ 8,738 $ 20,831 $ 18,922 $ 80,222 Quarter Ended September 30, 2018 Nine Months Ended September 30, 2018 Consumer Media Mobile Services Games Napster Consumer Media Mobile Services Games Napster Sales Channel Business to Business $ 3,220 $ 7,209 $ 806 $ — $ 9,438 $ 22,312 $ 2,393 $ — Direct to Consumer 1,513 139 4,692 — 4,662 459 13,689 — Total $ 4,733 $ 7,348 $ 5,498 $ — $ 14,100 $ 22,771 $ 16,082 $ — Consumer Media Quarter Ended Nine Months Ended 2019 2018 2019 2018 Revenue $ 3,632 $ 4,733 $ 8,738 $ 14,100 Cost of revenue 705 955 2,341 2,976 Gross profit 2,927 3,778 6,397 11,124 Operating expenses 2,692 3,448 8,688 10,805 Operating income (loss) $ 235 $ 330 $ (2,291 ) $ 319 Mobile Services Quarter Ended Nine Months Ended 2019 2018 2019 2018 Revenue $ 6,895 $ 7,348 $ 20,831 $ 22,771 Cost of revenue 1,721 2,052 5,634 6,502 Gross profit 5,174 5,296 15,197 16,269 Operating expenses 7,143 6,825 22,142 21,160 Operating income (loss) $ (1,969 ) $ (1,529 ) $ (6,945 ) $ (4,891 ) Games Quarter Ended Nine Months Ended 2019 2018 2019 2018 Revenue $ 7,164 $ 5,498 $ 18,922 $ 16,082 Cost of revenue 1,934 1,228 5,259 4,501 Gross profit 5,230 4,270 13,663 11,581 Operating expenses 5,151 5,447 15,476 15,459 Operating income (loss) $ 79 $ (1,177 ) $ (1,813 ) $ (3,878 ) Napster Quarter Ended Nine Months Ended 2019 2018 2019 2018 Revenue $ 27,302 $ — $ 80,222 $ — Cost of revenue 21,986 — 65,408 — Gross profit 5,316 — 14,814 — Operating expenses 6,472 — 18,642 — Operating income (loss) $ (1,156 ) $ — $ (3,828 ) $ — Corporate Quarter Ended Nine Months Ended 2019 2018 2019 2018 Cost of revenue $ (68 ) $ 4 $ (212 ) $ 21 Operating expenses 3,522 2,548 11,895 8,244 Operating income (loss) $ (3,454 ) $ (2,552 ) $ (11,683 ) $ (8,265 )
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 Nine Months Ended 2019 2018 2019 2018 United States $ 22,015 $ 9,026 $ 62,307 $ 28,106 Europe 16,425 3,005 48,906 9,040 Rest of the World 6,553 5,548 17,500 15,807 Total net revenue $ 44,993 $ 17,579 $ 128,713 $ 52,953
Long-Lived Assets by Geographic Region	Long-lived assets (consisting of goodwill, equipment, software, leasehold improvements, operating lease assets, and other intangible assets) by geographic region (in thousands) are as follows: September 30, December 31, United States $ 88,043 $ 11,823 Europe 10,359 6,761 Rest of the World 2,497 1,151 Total long-lived assets $ 100,899 $ 19,735

Recent Accounting Pronounceme_2

Recent Accounting Pronouncements Recent Accounting Pronouncements (Details) - USD ($) $ in Thousands	Sep. 30, 2019	Jan. 01, 2019	Dec. 31, 2018
Accounting Changes and Error Corrections [Abstract]
Operating lease assets	$ 12,499	$ 12,537	$ 0
Present value of total minimum payments(b)	$ 14,290	$ 14,601

Revenue Recognition (Additional

Revenue Recognition (Additional Information) (Details) - USD ($) $ in Thousands	Sep. 30, 2019	Dec. 31, 2018	Jan. 01, 2018
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Retained deficit	$ (537,646)	$ (524,009)
Accounting Standards Update 2014-09
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Retained deficit			$ 1,000

Revenue Recognition (Disaggrega

Revenue Recognition (Disaggregation of Revenue) (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Disaggregation of Revenue [Line Items]
Revenue	$ 44,993	$ 17,579	$ 128,713	$ 52,953
Consumer Media
Disaggregation of Revenue [Line Items]
Revenue	3,632	4,733	8,738	14,100
Consumer Media | Business to Business
Disaggregation of Revenue [Line Items]
Revenue	2,398	3,220	4,951	9,438
Consumer Media | Direct to Consumer
Disaggregation of Revenue [Line Items]
Revenue	1,234	1,513	3,787	4,662
Consumer Media | Software License
Disaggregation of Revenue [Line Items]
Revenue	1,987	2,746	3,666	7,891
Consumer Media | Subscription Services
Disaggregation of Revenue [Line Items]
Revenue	1,028	1,232	3,156	3,742
Consumer Media | Product Sales
Disaggregation of Revenue [Line Items]
Revenue	207	281	632	920
Consumer Media | Advertising and Other
Disaggregation of Revenue [Line Items]
Revenue	410	474	1,284	1,547
Mobile Services
Disaggregation of Revenue [Line Items]
Revenue	6,895	7,348	20,831	22,771
Mobile Services | Business to Business
Disaggregation of Revenue [Line Items]
Revenue	6,784	7,209	20,482	22,312
Mobile Services | Direct to Consumer
Disaggregation of Revenue [Line Items]
Revenue	111	139	349	459
Mobile Services | Software License
Disaggregation of Revenue [Line Items]
Revenue	888	520	2,444	2,324
Mobile Services | Subscription Services
Disaggregation of Revenue [Line Items]
Revenue	6,007	6,828	18,387	20,447
Mobile Services | Product Sales
Disaggregation of Revenue [Line Items]
Revenue	0	0	0	0
Mobile Services | Advertising and Other
Disaggregation of Revenue [Line Items]
Revenue	0	0	0	0
Games
Disaggregation of Revenue [Line Items]
Revenue	7,164	5,498	18,922	16,082
Games | Business to Business
Disaggregation of Revenue [Line Items]
Revenue	1,362	806	3,513	2,393
Games | Direct to Consumer
Disaggregation of Revenue [Line Items]
Revenue	5,802	4,692	15,409	13,689
Games | Software License
Disaggregation of Revenue [Line Items]
Revenue	0	0	0	0
Games | Subscription Services
Disaggregation of Revenue [Line Items]
Revenue	3,056	2,744	9,114	8,126
Games | Product Sales
Disaggregation of Revenue [Line Items]
Revenue	3,078	2,280	7,243	6,635
Games | Advertising and Other
Disaggregation of Revenue [Line Items]
Revenue	1,030	474	2,565	1,321
Napster
Disaggregation of Revenue [Line Items]
Revenue	27,302	0	80,222	0
Napster | Business to Business
Disaggregation of Revenue [Line Items]
Revenue	13,084	0	38,983	0
Napster | Direct to Consumer
Disaggregation of Revenue [Line Items]
Revenue	14,218	0	41,239	0
Napster | Software License
Disaggregation of Revenue [Line Items]
Revenue	0	0	0	0
Napster | Subscription Services
Disaggregation of Revenue [Line Items]
Revenue	27,302	0	80,222	0
Napster | Product Sales
Disaggregation of Revenue [Line Items]
Revenue	0	0	0	0
Napster | Advertising and Other
Disaggregation of Revenue [Line Items]
Revenue	$ 0	$ 0	$ 0	$ 0

Revenue Recognition Contract Ba

Revenue Recognition Contract Balances (Details) - USD ($) $ in Millions	9 Months Ended
	Sep. 30, 2019	Dec. 31, 2018
Contract Balances [Abstract]
Long-term accounts receivable	$ 0.3	$ 0.7
Deferred revenue	6.3
Increase in deferred revenue	$ 3.9

Stock-Based Compensation (Recog

Stock-Based Compensation (Recognized Stock-Based Compensation Expense) (Detail) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Share-based Payment Arrangement [Abstract]
Total stock-based compensation expense	$ 503	$ 499	$ 2,420	$ 2,113

Stock-Based Compensation (Weigh

Stock-Based Compensation (Weighted-Average Assumptions Used to Determine Fair Value of Options Granted) (Detail)	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Share-based Payment Arrangement [Abstract]
Expected dividend yield	0.00%	0.00%	0.00%	0.00%
Risk-free interest rate	1.71%	2.78%	2.16%	2.69%
Expected life	3 years 9 months	3 years 9 months	4 years 1 month	3 years 11 months
Volatility	41.00%	35.00%	41.00%	35.00%

Stock-Based Compensation (Addit

Stock-Based Compensation (Additional Information) (Detail) $ in Millions	3 Months Ended
	Sep. 30, 2019USD ($)
Share-based Payment Arrangement [Abstract]
Total unrecognized compensation cost	$ 2.7
Total unrecognized compensation cost, expected recognition period (in years)	3 years

Acquisitions - Narrative (Detai

Acquisitions - Narrative (Details) - USD ($)	Jan. 18, 2019	Apr. 16, 2018	Sep. 30, 2019	Jun. 30, 2019	Mar. 31, 2019	Sep. 30, 2018	Jun. 30, 2018	Mar. 31, 2018	Sep. 30, 2019	Sep. 30, 2018	Dec. 31, 2018	Nov. 30, 2017
Business Acquisition [Line Items]
Business Acquisition, Transaction Costs			$ 100,000						$ 1,300,000
Business Combination, Step Acquisition, Equity Interest in Acquiree, Remeasurement Gain									2,700,000
Business Combination, Step Acquisition, Remeasurement Gain and Gains (Losses) From Other Preexisting Relationships			0			$ 0			12,338,000	$ 0
Goodwill			65,154,000						65,154,000		$ 16,955,000
Revenue			44,993,000			17,579,000			128,713,000	52,953,000
Net Income (Loss) Attributable to Noncontrolling Interest						0				0
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest			$ (6,254,000)	$ (9,455,000)	$ 1,214,000	(5,977,000)	$ (6,930,000)	$ (5,178,000)	$ (14,495,000)	(18,085,000)
Netherlands-Based Game Development Studio
Business Acquisition [Line Items]
Percentage of shares acquired		100.00%
Net purchase price		$ 4,200,000
Rhapsody America LLC
Business Acquisition [Line Items]
Percentage of shares acquired	42.00%
Business Combination, Step Acquisition, Equity Interest in Acquiree, Including Subsequent Acquisition, Percentage	84.00%
Noncontrolling Interest, Ownership Percentage by Noncontrolling Owners			16.00%						16.00%
Business Combination, Step Acquisition, Equity Interest in Acquiree, Remeasurement Gain	$ 2,700,000
Business Combination, Step Acquisition, Initial Cash Consideration	1,000,000
Business Combination, Step Acquisition, Initial Cash Consideration, Amount Paid At Closing	200,000
Business Combination, Step Acquisition, Additional Cash Payment	14,000,000
Business Combination, Step Acquisition, Additional Cash Payment, Maximum Amount	40,000,000
Business Combination, Contingent Consideration Paid	11,600,000
Business Combination, Consideration Transferred, Settlement of Debt and Warrants	6,408,000
Business Combination, Acquisition of Less than 100 Percent, Noncontrolling Interest, Fair Value	570,000
Goodwill	48,474,000
Net purchase price	21,708,000
Rhapsody America LLC | Other Operating Income (Expense)
Business Acquisition [Line Items]
Business Combination, Consideration Transferred, Gain (Loss) on Settlement of Debt and Warrants	5,541,000
Business Acquisition, Release of Preexisting Foreign Currency, Adjustments	1,347,000
Rhapsody America LLC
Business Acquisition [Line Items]
Proceeds from Divestiture of Interest in Consolidated Subsidiaries	15,000,000
Maximum | Rhapsody America LLC
Business Acquisition [Line Items]
Business Combination, Step Acquisition, Additional Cash Payment	25,000,000
Minimum | Rhapsody America LLC
Business Acquisition [Line Items]
Business Combination, Step Acquisition, Additional Cash Payment	15,000,000
Minimum | Rhapsody America LLC
Business Acquisition [Line Items]
Proceeds from Divestiture of Interest in Consolidated Subsidiaries	60,000,000
Accrued Royalties, Fulfillment and Other Liabilities, Current | Rhapsody America LLC
Business Acquisition [Line Items]
Business Combination, Contingent Consideration Paid	2,600,000
Other Noncurrent Liabilities | Rhapsody America LLC
Business Acquisition [Line Items]
Business Combination, Contingent Consideration Paid	$ 9,000,000
Line of Credit
Business Acquisition [Line Items]
Guarantor Obligations, Maximum Exposure, Undiscounted, Gain (loss) on Elimination												$ 2,800,000
Napster
Business Acquisition [Line Items]
Goodwill			$ 48,474,000						$ 48,474,000
Revenue			27,302,000			0			80,222,000	0
Napster | Operating Segments
Business Acquisition [Line Items]
Revenue			27,302,000			$ 0			80,222,000	$ 0
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest			$ (973,000)						$ (4,271,000)

Acquisitions - Net Assets Acqui

Acquisitions - Net Assets Acquired (Details) - USD ($) $ in Thousands	Jan. 18, 2019	Sep. 30, 2019	Dec. 31, 2018
Business Acquisition [Line Items]
Business Combination, Step Acquisition, Equity Interest in Acquiree, Remeasurement Gain		$ 2,700
Goodwill		$ 65,154	$ 16,955
Rhapsody America LLC
Business Acquisition [Line Items]
Business Combination, Step Acquisition, Initial Cash Consideration	$ 1,000
Business Combination, Contingent Consideration Paid	11,600
Business Combination, Step Acquisition, Equity Interest in Acquiree, Remeasurement Gain	2,700
Business Combination, Consideration Transferred, Settlement of Debt and Warrants	6,408
Net purchase price	21,708
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Cash and Equivalents	10,138
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Current Assets, Receivables	20,838
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Current Assets, Prepaid Expense and Other Assets	12,879
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Restricted Cash	2,322
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Property, Plant, and Equipment	474
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Operating Lease Assets	2,314
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Assets, Other	77
Business Combination Recognized Identifiable Assets Acquired and Liabilities Assumed, Deferred Tax Assets	5,942
Intangible assets acquired	23,700
Goodwill	48,474
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Assets	127,158
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Current Liabilities, Accounts Payable	937
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Accrued Royalties and Fulfillment	71,980
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Accrued and Other Liabilities, Current	7,475
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Contract with Customer, Liability, Current	3,600
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Notes Payable	12,115
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Deferred Tax Liabilities	6,061
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Operating Lease, Liabilities, Noncurrent	1,197
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Noncurrent Liabilities, Other	1,515
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Liabilities	104,880
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Net	22,278
Business Combination, Acquisition of Less than 100 Percent, Noncontrolling Interest, Fair Value	570
Business Combination, Recognized Identifiable Assets Acquired, Goodwill, and Liabilities Assumed, Less Noncontrolling Interest	$ 21,708

Acquisitions - Intangible Asset

Acquisitions - Intangible Assets Acquired (Details) - Rhapsody America LLC $ in Thousands	Jan. 18, 2019USD ($)
Business Acquisition [Line Items]
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Finite-Lived Intangibles	$ 23,700
Trademarks and Trade Names
Business Acquisition [Line Items]
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Finite-Lived Intangibles	6,800
Developed technology
Business Acquisition [Line Items]
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Finite-Lived Intangibles	5,900
Customer relationships
Business Acquisition [Line Items]
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Finite-Lived Intangibles	5,900
Partner Relationships
Business Acquisition [Line Items]
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Finite-Lived Intangibles	$ 5,100

Acquisitions - Pro Forma Inform

Acquisitions - Pro Forma Information (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Business Acquisition [Line Items]
Gain (Loss) on Sale of Investments				$ 12,338
Business Acquisition, Pro Forma Revenue	$ 45,074	$ 52,888	$ 135,267	165,033
Business Acquisition, Pro Forma Transaction Expenses		114		1,271
Business Acquisition, Pro Forma Net Income (Loss)	$ (5,386)	$ (3,748)	$ (23,358)	$ (1,453)

Fair Value Measurements (Financ

Fair Value Measurements (Financial Assets Measured at Fair Value on a Recurring Basis) (Detail) - USD ($) $ in Thousands	Sep. 30, 2019	Dec. 31, 2018
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Financial assets fair value	$ 23,475	$ 38,080
Amortized Cost	23,475	37,215
Cash and Cash Equivalents
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Financial assets fair value	18,101	35,561
Amortized Cost	18,101	35,561
Cash and Cash Equivalents | Cash
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Financial assets fair value	16,980	22,853
Amortized Cost	16,980	22,853
Cash and Cash Equivalents | Money market funds
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Financial assets fair value	1,121	12,708
Amortized Cost	1,121	12,708
Short-term Investments
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Financial assets fair value		24
Amortized Cost		24
Short-term Investments | Corporate notes and bonds
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Financial assets fair value		24
Amortized Cost		24
Restricted cash equivalents
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Financial assets fair value	5,374	1,630
Amortized Cost	5,374	1,630
Related Party Transaction | Warrants issued by Rhapsody
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Financial assets fair value		865
Amortized Cost		0
Level 1
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Financial assets fair value	18,101	35,561
Level 1 | Cash and Cash Equivalents
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Financial assets fair value	18,101	35,561
Level 1 | Cash and Cash Equivalents | Cash
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Financial assets fair value	16,980	22,853
Level 1 | Cash and Cash Equivalents | Money market funds
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Financial assets fair value	1,121	12,708
Level 1 | Short-term Investments
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Financial assets fair value		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
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
Level 2
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Financial assets fair value	5,374	1,654
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		24
Level 2 | Short-term Investments | Corporate notes and bonds
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Financial assets fair value		24
Level 2 | Restricted cash equivalents
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Financial assets fair value	5,374	1,630
Level 2 | Related Party Transaction | Warrants issued by Rhapsody
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Financial assets fair value		0
Level 3
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Financial assets fair value	0	865
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
Level 3 | Short-term Investments | Corporate notes and bonds
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Financial assets fair value		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		$ 865
Napster
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Business Combination, Contingent Consideration, Liability, Current	2,746
Business Combination, Contingent Consideration, Liability, Noncurrent	9,554
Business Combination, Contingent Consideration, Liability	12,300
Napster | Level 1
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Business Combination, Contingent Consideration, Liability, Current	0
Business Combination, Contingent Consideration, Liability, Noncurrent	0
Business Combination, Contingent Consideration, Liability	0
Napster | Level 2
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Business Combination, Contingent Consideration, Liability, Current	0
Business Combination, Contingent Consideration, Liability, Noncurrent	0
Business Combination, Contingent Consideration, Liability	0
Napster | Level 3
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Business Combination, Contingent Consideration, Liability, Current	2,746
Business Combination, Contingent Consideration, Liability, Noncurrent	9,554
Business Combination, Contingent Consideration, Liability	$ 12,300

Fair Value Measurements - Addit

Fair Value Measurements - Additional Information (Detail) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018	Dec. 31, 2018
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Unrestricted Cash and Cash Equivalents, Minimum Amount Required	$ 3,500		$ 3,500
Business Combination, Contingent Consideration Arrangements, Change in Amount of Contingent Consideration, Liability	400		700	$ 0
Financial assets fair value	$ 23,475		$ 23,475		$ 38,080
Expected life	3 years 9 months	3 years 9 months	4 years 1 month	3 years 11 months
Volatility	41.00%	35.00%	41.00%	35.00%
Restricted cash equivalents
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Financial assets fair value	$ 5,374		$ 5,374		$ 1,630
Restricted Cash and Investments, Minimum Amount	3,500		3,500
Napster | Restricted cash equivalents
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Restricted Cash and Investments, Minimum Amount	$ 1,500		$ 1,500

Other Intangible Assets (Detail

Other Intangible Assets (Detail) - USD ($) $ in Thousands	3 Months Ended	9 Months Ended
	Sep. 30, 2019	Sep. 30, 2019	Sep. 30, 2018	Dec. 31, 2018
Finite-Lived Intangible Assets [Line Items]
Amortization of Intangible Assets	$ 1,100	$ 3,200	$ 300
Finite-Lived Intangible Assets, Net [Abstract]
Gross Amount	85,185	85,185		$ 64,742
Accumulated Amortization	64,876	64,876		64,716
Net	20,309	20,309		26
Customer relationships
Finite-Lived Intangible Assets, Net [Abstract]
Gross Amount	40,050	40,050		30,993
Accumulated Amortization	31,075	31,075		30,993
Net	8,975	8,975		0
Developed technology
Finite-Lived Intangible Assets, Net [Abstract]
Gross Amount	29,446	29,446		24,446
Accumulated Amortization	24,591	24,591		24,446
Net	4,855	4,855		0
Patents, trademarks and tradenames
Finite-Lived Intangible Assets, Net [Abstract]
Gross Amount	10,345	10,345		3,765
Accumulated Amortization	3,866	3,866		3,765
Net	6,479	6,479		0
Service contracts
Finite-Lived Intangible Assets, Net [Abstract]
Gross Amount	5,344	5,344		5,538
Accumulated Amortization	5,344	5,344		5,512
Net	$ 0	$ 0		$ 26

Other Intangible Assets - Estim

Other Intangible Assets - Estimated Amortization Expense (Details) - USD ($) $ in Thousands	Sep. 30, 2019	Dec. 31, 2018
Finite-Lived Intangible Assets [Line Items]
2019 (Excluding the nine months ended September 30, 2019)	$ 1,125
2020	4,501
2021	4,501
2022	2,617
2023	1,121
Thereafter	6,444
Finite-Lived Intangible Assets, Net	$ 20,309	$ 26

Goodwill (Changes in Goodwill)

Goodwill (Changes in Goodwill) (Detail) $ in Thousands	9 Months Ended
	Sep. 30, 2019USD ($)
Goodwill [Roll Forward]
Beginning Balance	$ 16,955
Goodwill, Written off Related to Sale of Business Unit	48,474
Effects of foreign currency translation	(275)
Ending Balance	$ 65,154

Goodwill (Additional Informatio

Goodwill (Additional Information) (Details) - USD ($) $ in Thousands	Apr. 16, 2018	Sep. 30, 2019	Dec. 31, 2018
Acquired Finite-Lived Intangible Assets [Line Items]
Goodwill		$ 65,154	$ 16,955
Netherlands-Based Game Development Studio
Acquired Finite-Lived Intangible Assets [Line Items]
Percentage of shares acquired	100.00%
Net purchase price	$ 4,200

Goodwill (Goodwill by Segments)

Goodwill (Goodwill by Segments) (Detail) - USD ($) $ in Thousands	Sep. 30, 2019	Dec. 31, 2018
Goodwill [Line Items]
Goodwill	$ 65,154	$ 16,955
Consumer Media
Goodwill [Line Items]
Goodwill	580
Mobile Services
Goodwill [Line Items]
Goodwill	1,959
Games
Goodwill [Line Items]
Goodwill	14,141
Napster
Goodwill [Line Items]
Goodwill	$ 48,474

Accrued and Other Current Lia_3

Accrued and Other Current Liabilities (Detail) - USD ($) $ in Thousands	Sep. 30, 2019	Dec. 31, 2018
Product Warranty Liability [Line Items]
Royalties and other fulfillment costs	$ 70,371	$ 1,989
Employee compensation, commissions and benefits	6,750	4,444
Sales, VAT and other taxes payable	3,423	785
Operating Lease, Liability, Current	4,804	0
Other	7,181	4,094
Total accrued and other liabilities	92,529	$ 11,312
Napster
Product Warranty Liability [Line Items]
Royalties and other fulfillment costs	68,700
Prepaid Royalties	$ 13,500

Notes Payable and long-term d_2

Notes Payable and long-term debt (Details) - USD ($) $ in Thousands	Aug. 01, 2019	Sep. 30, 2019	Sep. 30, 2019	Sep. 30, 2018	Jun. 30, 2019	Dec. 31, 2018
Related Party Transaction [Line Items]
Notes payable		$ 3,599	$ 3,599			$ 0
Related Party Transaction, Accounts Receivable Purchasing Agreement, Percent Upfront				90.00%
Proceeds from Lines of Credit		3,900
Debt Issuance Costs, Line of Credit Arrangements, Gross		600	600
Restricted cash equivalents
Related Party Transaction [Line Items]
Restricted Cash and Investments, Minimum Amount		3,500	3,500
Restricted cash equivalents | Napster
Related Party Transaction [Line Items]
Restricted Cash and Investments, Minimum Amount		1,500	$ 1,500
Related Party Debt Obligation | Napster
Related Party Transaction [Line Items]
Debt Instrument, Covenant, Amount Outstanding Under Agreement, Percent, Minimum			5.00%
Revolving Credit Facility
Related Party Transaction [Line Items]
Line of Credit Facility, Maximum Borrowing Capacity	$ 10,000
Debt Instrument, Description of Variable Rate Basis	0.055
Revolving Credit Facility | Napster
Related Party Transaction [Line Items]
Line of Credit Facility, Maximum Borrowing Capacity		15,000	$ 15,000
Notes payable		$ 3,585	$ 3,585
Line of Credit Facility, Interest Rate at Period End		2.25%	2.25%
Prime Rate [Member] | Revolving Credit Facility
Related Party Transaction [Line Items]
Debt Instrument, Basis Spread on Variable Rate	0.50%
EURIBOR | Revolving Credit Facility | Napster
Related Party Transaction [Line Items]
Debt Instrument, Basis Spread on Variable Rate			2.25%
Minimum | EURIBOR | Revolving Credit Facility | Napster
Related Party Transaction [Line Items]
Debt Instrument, Basis Spread on Variable Rate			0.00%
Revolver Loan and Security Agreement | Revolving Credit Facility | Napster
Related Party Transaction [Line Items]
Line of Credit Facility, Maximum Borrowing Capacity					$ 7,000
Other Current Assets [Member]
Related Party Transaction [Line Items]
Unamortized Debt Issuance Expense		$ 300	$ 300
Other Noncurrent Assets [Member]
Related Party Transaction [Line Items]
Unamortized Debt Issuance Expense		$ 200	$ 200

Restructuring Charges (Details)

Restructuring Charges (Details) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018
Restructuring Cost and Reserve [Line Items]
Costs incurred and charged to expense	$ 1,587	$ 1,320
Restructuring Reserve [Roll Forward]
Accrued liability beginning balance	755
Restructuring Reserve, Charged Against Earnings, Excluding Non-Cash Charges	1,224
Cash payments	(1,292)
Accrued liability ending balance	687
Employee Separation Costs
Restructuring Cost and Reserve [Line Items]
Costs incurred and charged to expense	1,050	1,320
Restructuring Reserve [Roll Forward]
Accrued liability beginning balance	755
Costs incurred and charged to expense	1,050
Cash payments	(1,292)
Accrued liability ending balance	513
Contract Termination [Member]
Restructuring Cost and Reserve [Line Items]
Costs incurred and charged to expense	537	$ 0
Restructuring Reserve [Roll Forward]
Accrued liability beginning balance	0
Costs incurred and charged to expense	174
Cash payments	0
Accrued liability ending balance	$ 174

Income Taxes Income Taxes (Deta

Income Taxes Income Taxes (Details) $ in Thousands	Sep. 30, 2019USD ($)
Income Tax Contingency [Line Items]
Unrecognized Tax Benefits	$ 4,500
Napster
Income Tax Contingency [Line Items]
Unrecognized Tax Benefits	$ 4,100

Earnings (Loss) Per Share (Calc

Earnings (Loss) Per Share (Calculation of Basic and Diluted Earnings Per Share) (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended						9 Months Ended
	Sep. 30, 2019	Jun. 30, 2019	Mar. 31, 2019	Sep. 30, 2018	Jun. 30, 2018	Mar. 31, 2018	Sep. 30, 2019	Sep. 30, 2018
Earnings Per Share [Abstract]
Net income (loss) attributable to RealNetworks	$ (5,968)		$ (5,968)	$ (5,977)			$ (13,637)	$ (18,085)
Income (Loss) from Continuing Operations before Income Taxes, Noncontrolling Interest	(5,944)			(5,705)			(13,683)	(17,377)
Net income (loss) attributable to RealNetworks								(18,085)
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest	(6,254)	$ (9,455)	$ 1,214	(5,977)	$ (6,930)	$ (5,178)	(14,495)	(18,085)
Comprehensive Income (Loss), Net of Tax, Attributable to Parent	$ (6,200)			$ (6,302)			$ (14,448)	$ (19,615)
Weighted average common shares outstanding used to compute basic EPS	38,062			37,618			37,944	37,549
Dilutive effect of stock based awards	0			0			0	0
Weighted average common shares outstanding used to compute diluted EPS	38,062			37,618			37,944	37,549
Earnings Per Share, Basic	$ (0.16)			$ (0.16)			$ (0.36)	$ (0.48)
Basic EPS from continuing operations (in dollars per share)							(0.36)	(0.48)
Earnings Per Share, Diluted	$ (0.16)			$ (0.16)			(0.36)	(0.48)
Diluted EPS from continuing operations (in dollars per share)							$ (0.36)	$ (0.48)

Earnings (Loss) Per Share (Addi

Earnings (Loss) Per Share (Additional Information) (Detail) - shares shares in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Earnings Per Share [Abstract]
Shares of common stock excluded from the calculation of diluted net income per share because of antidilutive effect	8	6.7	7.6	6.3

Leases - Details of Lease Asset

Leases - Details of Lease Assets and Liabilities (Details) $ in Thousands	3 Months Ended	9 Months Ended
	Sep. 30, 2019USD ($)	Sep. 30, 2019USD ($)
Leases [Abstract]
Operating Lease, Expense, Including Sublease Income	$ 1,396	$ 4,199
Operating Lease, Variable Rent Expense	165	676
Operating Leases, Rent Expense, Sublease Rentals	(511)	(1,497)
Operating Lease, Expense	1,050	3,378
Operating cash outflows for lease liabilities	$ (1,274)	$ (4,147)
Weighted-average remaining lease term	4 years	4 years
Weighted-average discount rate	5.14%	5.14%

Leases - Schedule of Future Min

Leases - Schedule of Future Minimum Lease Payments (Details) - USD ($) $ in Thousands	Sep. 30, 2019	Jan. 01, 2019	Dec. 31, 2018
Leases [Abstract]
2019 (Excluding the nine months ended September 30, 2019)	$ 1,481
2020	4,922
2021	3,266
2022	2,422
2023	2,347
Thereafter	1,634
Total minimum payments(a)	16,072
Less: Imputed interest	1,782
Present value of total minimum payments(b)	14,290	$ 14,601
Executory costs	6,500
Sublease rentals	5,800
Operating lease, liability, noncurrent	9,486		$ 0
Operating lease, liability, current	$ 4,804		$ 0

Leases - Narrative (Details)

Leases - Narrative (Details) - USD ($) $ in Millions	Sep. 30, 2019	Dec. 31, 2018
Lessee, Lease, Description [Line Items]
Future minimum lease payments		$ 15.9
2019		3.7
2020		3
2021		2.7
2022		2.4
2023		2.3
Thereafter		$ 1.6
Minimum
Lessee, Lease, Description [Line Items]
Lessee, Operating Lease, Term of Contract	1 year
Maximum
Lessee, Lease, Description [Line Items]
Lessee, Operating Lease, Term of Contract	5 years

Commitments and Contingencies C

Commitments and Contingencies Commitments and Contingencies (Details) - USD ($) $ in Millions	Sep. 30, 2019	Nov. 30, 2017
Line of Credit
Loss Contingencies [Line Items]
Guarantor Obligations, Maximum Exposure, Undiscounted, Gain (loss) on Elimination		$ 2.8
Guarantor Obligations, Maximum Exposure, Undiscounted		$ 2.8
Napster
Loss Contingencies [Line Items]
Loss Contingency, Estimate of Possible Loss	$ 10

Segment Information (Additional

Segment Information (Additional Information) (Detail)	3 Months Ended
	Sep. 30, 2019Segment
Segment Reporting [Abstract]
Number of reporting segments	4

Segment Information (Segment Re

Segment Information (Segment Results) (Detail) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Segment Reporting Information [Line Items]
Revenue	$ 44,993	$ 17,579	$ 128,713	$ 52,953
Cost of revenue	26,278	4,239	78,430	14,000
Gross profit	18,715	13,340	50,283	38,953
Operating expenses	24,980	18,268	76,843	55,668
Operating loss	(6,265)	(4,928)	(26,560)	(16,715)
Consumer Media
Segment Reporting Information [Line Items]
Revenue	3,632	4,733	8,738	14,100
Mobile Services
Segment Reporting Information [Line Items]
Revenue	6,895	7,348	20,831	22,771
Games
Segment Reporting Information [Line Items]
Revenue	7,164	5,498	18,922	16,082
Napster
Segment Reporting Information [Line Items]
Revenue	27,302	0	80,222	0
Operating Segments | Consumer Media
Segment Reporting Information [Line Items]
Revenue	3,632	4,733	8,738	14,100
Cost of revenue	705	955	2,341	2,976
Gross profit	2,927	3,778	6,397	11,124
Operating expenses	2,692	3,448	8,688	10,805
Operating loss	235	330	(2,291)	319
Operating Segments | Mobile Services
Segment Reporting Information [Line Items]
Revenue	6,895	7,348	20,831	22,771
Cost of revenue	1,721	2,052	5,634	6,502
Gross profit	5,174	5,296	15,197	16,269
Operating expenses	7,143	6,825	22,142	21,160
Operating loss	(1,969)	(1,529)	(6,945)	(4,891)
Operating Segments | Games
Segment Reporting Information [Line Items]
Revenue	7,164	5,498	18,922	16,082
Cost of revenue	1,934	1,228	5,259	4,501
Gross profit	5,230	4,270	13,663	11,581
Operating expenses	5,151	5,447	15,476	15,459
Operating loss	79	(1,177)	(1,813)	(3,878)
Operating Segments | Napster
Segment Reporting Information [Line Items]
Revenue	27,302	0	80,222	0
Cost of revenue	21,986	0	65,408	0
Gross profit	5,316	0	14,814	0
Operating expenses	6,472	0	18,642	0
Operating loss	(1,156)	0	(3,828)	0
Corporate
Segment Reporting Information [Line Items]
Cost of revenue	(68)	4	(212)	21
Operating expenses	3,522	2,548	11,895	8,244
Operating loss	$ (3,454)	$ (2,552)	$ (11,683)	$ (8,265)

Segment Information (Revenue by

Segment Information (Revenue by Geographic Region) (Detail) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenue	$ 44,993	$ 17,579	$ 128,713	$ 52,953
United States
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenue	22,015	9,026	62,307	28,106
Europe
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenue	16,425	3,005	48,906	9,040
Rest of the World
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenue	$ 6,553	$ 5,548	$ 17,500	$ 15,807

Segment Information (Long-Lived

Segment Information (Long-Lived Assets by Geographic Region) (Detail) - USD ($) $ in Thousands	Sep. 30, 2019	Dec. 31, 2018
Revenues from External Customers and Long-Lived Assets [Line Items]
Long-lived assets	$ 100,899	$ 19,735
United States
Revenues from External Customers and Long-Lived Assets [Line Items]
Long-lived assets	88,043	11,823
Europe
Revenues from External Customers and Long-Lived Assets [Line Items]
Long-lived assets	10,359	6,761
Rest of the World
Revenues from External Customers and Long-Lived Assets [Line Items]
Long-lived assets	$ 2,497	$ 1,151

Related Party Transactions Rela

Related Party Transactions Related Party Transactions (Details) - USD ($) $ in Thousands	1 Months Ended	3 Months Ended	9 Months Ended
	Feb. 28, 2015	Mar. 31, 2010	Sep. 30, 2019	Jan. 18, 2019	Dec. 31, 2018	Dec. 01, 2016
Related Party Transaction [Line Items]
Payments for restructuring			$ 1,292
Rhapsody America LLC
Related Party Transaction [Line Items]
Loan principal to related party			1,000
Rhapsody America LLC
Related Party Transaction [Line Items]
Percentage of shares acquired				42.00%
Business Combination, Step Acquisition, Equity Interest in Acquiree, Including Subsequent Acquisition, Percentage				84.00%
Rhapsody America LLC
Related Party Transaction [Line Items]
Payments for restructuring		$ 18,000
Liquidation preference amount			10,000
Percentage of ownership interest in Rhapsody					42.00%
Loan principal to related party						$ 5,000
Notes Payable, Related Parties, Aggregate Amount						$ 10,000
Note payable, Related Parties, Interest Rate						15.00%
Related Party Debt Obligation | Warrants issued by Rhapsody
Related Party Transaction [Line Items]
Total expected term for warrant	10 years
Related Party Debt Obligation | Rhapsody America LLC
Related Party Transaction [Line Items]
Loans and Leases Receivable, Related Parties			3,900
Debt [Member] | Rhapsody America LLC
Related Party Transaction [Line Items]
Loans and Leases Receivable, Related Parties			$ 5,400

Uncategorized Items - rnwk-2019

Label	Element	Value
Cumulative Effect of New Accounting Principle in Period of Adoption	us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption	$ 1,024,000
Parent [Member]
Cumulative Effect of New Accounting Principle in Period of Adoption	us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption	1,024,000
Retained Earnings [Member]
Cumulative Effect of New Accounting Principle in Period of Adoption	us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption	$ 1,024,000