Realnetworks (RNWK) 10-Q 6 Aug 20 2020 Q2 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	6 Months Ended
	Jun. 30, 2020	Jul. 31, 2020	Dec. 31, 2019
Document and Entity Information [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Jun. 30, 2020
Document Fiscal Year Focus	2020
Document Fiscal Period Focus	Q2
Entity Registrant Name	RealNetworks, Inc.
Entity Central Index Key	0001046327
Current Fiscal Year End Date	--12-31
Entity Filer Category	Non-accelerated Filer
Entity Small Business	true
Entity Emerging Growth Company	false
Entity Common Stock, Shares Outstanding		38,270,012
Document Quarterly Report	true
Document Transition Report	false
Entity File Number	1-37745
Entity Incorporation, State or Country Code	WA
Entity Tax Identification Number	91-1628146
City Area Code	(206)
Local Phone Number	674-2700
Entity Address, Address Line One	1501 First Avenue South, Suite 600
Entity Address, City or Town	Seattle
Entity Address, State or Province	WA
Entity Address, Postal Zip Code	98134
Entity Interactive Data Current	Yes
Entity Current Reporting Status	Yes
Entity Shell Company	false
Common stock, outstanding	38,254,000		38,227,000
Trading Symbol	RNWK
Security Exchange Name	NASDAQ
Document Information [Line Items]
Entity Shell Company	false
Common Stock [Member]
Document and Entity Information [Abstract]
Title of 12(b) Security	Common Stock, Par Value $0.001 per share
Document Information [Line Items]
Title of 12(b) Security	Common Stock, Par Value $0.001 per share
Convertible Preferred Stock [Member]
Document and Entity Information [Abstract]
Title of 12(b) Security	Preferred Share Purchase Rights
Document Information [Line Items]
Title of 12(b) Security	Preferred Share Purchase Rights

Recent Accounting Pronouncement

Recent Accounting Pronouncements	3 Months Ended
	Jun. 30, 2020
Accounting Changes and Error Corrections [Abstract]
Recent Accounting Pronouncements	Note 2 Recent Accounting Pronouncements 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, 2022, with early adoption permitted. We do not currently expect the adoption to have a material impact on our consolidated financial statements and related disclosures. In June 2016, the FASB issued new guidance amending existing guidance for the accounting of credit losses on financial instruments. Under the new guidance, the valuation allowance for credit losses is expected to be incurred over the financial asset’s contractual term. We reviewed the new credit loss standard and determined that it applies to our accounts receivable, which are typically of short duration and for which we have not historically experienced significant credit losses. This guidance is effective for us in fiscal years beginning after December 15, 2022 with a cumulative effect of adoption recorded as an adjustment to retained earnings. We are in the process of evaluating the effect that this new guidance will have on our consolidated financial statements and related disclosures.

CONDENSED CONSOLIDATED BALANCE

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Jun. 30, 2020	Dec. 31, 2019
Current assets:
Cash and cash equivalents	$ 19,688	$ 16,805
Trade accounts receivable, net of allowances of $700 and $597	28,289	29,507
Deferred costs, current portion	743	823
Prepaid expenses and other current assets	5,688	7,445
Total current assets	54,408	54,580
Equipment, software, and leasehold improvements, at cost:
Equipment and software	30,862	32,167
Leasehold improvements	2,916	3,311
Total equipment, software, and leasehold improvements, at cost	33,778	35,478
Less accumulated depreciation and amortization	31,297	32,657
Net equipment, software, and leasehold improvements	2,481	2,821
Operating lease assets	10,058	11,592
Restricted cash equivalents	5,374	5,374
Other assets	992	1,891
Deferred costs, non-current portion	1,004	1,021
Deferred tax assets, net	756	761
Other intangible assets, net of accumulated amortization of $68,248 and $67,863	16,931	19,286
Goodwill	62,336	62,428
Total assets	154,340	159,754
Current liabilities:
Accounts payable	4,125	4,927
Accrued royalties, fulfillment and other current liabilities	75,865	77,303
Deferred revenue, current portion	6,181	6,620
Notes payable	4,495	7,331
Total current liabilities	90,666	96,181
Deferred revenue, non-current portion	396	96
Deferred tax liabilities, net	1,122	1,172
Operating Lease, Liability, Noncurrent	7,088	8,466
Other long-term liabilities	8,232	11,666
Total liabilities	115,999	121,481
Commitments and contingencies
Preferred stock, $0.001 par value:
Common stock, $0.001 par value authorized 250,000 shares; issued and outstanding 38,254 shares in 2020 and 38,227 shares in 2019	38	38
Additional paid-in capital	654,760	644,070
Accumulated other comprehensive loss	(61,710)	(61,323)
Accumulated deficit	(553,764)	(544,010)
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest	38,341	38,273
Stockholders' Equity Attributable to Noncontrolling Interest	(991)	(502)
Total shareholders’ equity	39,332	38,775
Total liabilities and equity	154,340	159,754
Long-term Debt	8,495	3,900
Preferred stock, Series A
Preferred stock, $0.001 par value:
Preferred stock	0	0
Preferred stock, Undesignated series
Preferred stock, $0.001 par value:
Preferred stock	0	0
Series B Preferred Stock
Preferred stock, $0.001 par value:
Preferred stock	$ 8	$ 0

CONDENSED CONSOLIDATED BALANC_2

CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($)	Jun. 30, 2020	Dec. 31, 2019
Allowance for Doubtful Accounts Receivable, Current	$ 700,000	$ 597,000
Finite-Lived Intangible Assets, Accumulated Amortization	$ 68,248,000	$ 67,863,000
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	38,254,000	38,227,000
Common stock, outstanding	38,254,000	38,227,000
Preferred stock, Series A
Preferred stock, authorized	200,000	200,000
Preferred stock, Undesignated series
Preferred stock, authorized	51,700,000	59,800,000
Series B Preferred Stock
Preferred stock, shares issued	8,065,000	0
Preferred stock, shares outstanding	8,065,000	0
Preferred stock, authorized	8,100,000	0

CONDENSED CONSOLIDATED STATEMEN

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS) - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019
Revenue	$ 40,424	$ 44,248	$ 83,569	$ 83,720
Cost of revenue	23,033	27,282	47,209	52,152
Comprehensive Income (Loss), Net of Tax, Including Portion Attributable to Noncontrolling Interest	(5,034)	(9,947)	(10,630)	(8,820)
Gross profit	17,391	16,966	36,360	31,568
Operating expenses:
Research and development	7,802	8,876	16,420	17,709
Sales and marketing	6,927	8,360	15,044	16,502
General and administrative	6,680	8,392	13,793	16,756
Restructuring and other charges	881	729	1,090	896
Total operating expenses	22,290	26,357	46,347	51,863
Operating loss	(4,899)	(9,391)	(9,987)	(20,295)
Interest Expense	(278)	(43)	(540)	(209)
Other income (expenses):
Interest income	23	40	28	117
Other income (expenses), net	(134)	183	661	310
Total other income (expenses), net	(442)	180	96	12,556
Income (loss) before income taxes	(5,341)	(9,211)	(9,891)	(7,739)
Income tax expense	213	244	352	502
Net income (loss) including noncontrolling interests	(5,554)	(9,455)	(10,243)	(8,241)
Net income (loss) attributable to RealNetworks			(10,243)	(8,241)
Comprehensive Income (Loss), Net of Tax, Attributable to Noncontrolling Interest	$ (442)	(253)	(489)	(572)
Net income (loss) attributable to RealNetworks		$ (9,202)	$ (9,754)	$ (7,669)
Basic net income (loss) per share (USD per share)	$ (0.13)	$ (0.24)	$ (0.26)	$ (0.20)
Diluted net income (loss) per share (USD per share)	$ (0.13)	$ (0.24)	$ (0.26)	$ (0.20)
Shares used to compute basic net income (loss) per share	38,243	37,948	38,236	37,885
Shares used to compute diluted net income (loss) per share	38,243	37,948	38,236	37,885
Comprehensive income (loss):
Unrealized investment holding gains (losses), net of reclassification adjustments	$ 520
Foreign currency translation adjustments	520	$ (492)	$ (387)	$ (579)
Total other comprehensive income (loss)	520	(492)	(387)	(579)
Net income (loss) attributable to RealNetworks		(9,202)	(9,754)	(7,669)
Comprehensive income (loss) including noncontrolling interests	(4,592)	(9,694)	(10,141)	(8,248)
Net Income (Loss) Attributable to Noncontrolling Interest	(442)	(253)	(489)	(572)
(Gain) loss on equity investments, net	$ (53)	$ 0	(53)	12,338
Gain (Loss) on Sale of Investments			$ (53)	$ 12,338

CONDENSED CONSOLIDATED STATEM_2

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS) (Parenthetical) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019
Components of net revenue:
Revenue	$ 40,424	$ 44,248	$ 83,569	$ 83,720
Components of cost of revenue:
Cost of revenue	$ 23,033	$ 27,282	$ 47,209	$ 52,152

CONDENSED CONSOLIDATED STATEM_3

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019
Cash flows from operating activities:
Net income (loss) including noncontrolling interests	$ (10,243)	$ (8,241)
Adjustments to reconcile net income (loss) including noncontrolling interests to net cash used in operating activities:
Depreciation and amortization	2,832	2,959
Stock-based compensation	703	1,917
(Gain) loss on equity investments, net	(53)	12,338
Foreign currency (gain) loss	612	315
Fair value adjustments to contingent consideration liability	(200)	300
Trade accounts receivable	1,162	671
Prepaid expenses, operating lease and other assets	4,065	(328)
Accounts payable	(720)	398
Accrued, lease and other liabilities	(5,617)	(1,122)
Net cash used in operating activities	(8,577)	(16,099)
Cash flows from investing activities:
Purchases of equipment, software, and leasehold improvements	(326)	(873)
Proceeds from sales and maturities of short-term investments	0	24
Acquisition, net of cash acquired	0	12,260
Net cash (used in) provided by investing activities	(326)	11,411
Cash flows from financing activities:
Proceeds from issuance of preferred stock	10,000	0
Tax payments from shares withheld upon vesting of restricted stock	(5)	(287)
Proceeds from notes payable and long-term debt	18,776	19,760
Repayments of notes payable and long-term debt	(16,889)	(24,018)
Other financing activities	0	450
Net cash provided by (used in) financing activities	11,882	(3,951)
Effect of exchange rate changes on cash, cash equivalents and restricted cash	(96)	(89)
Net increase (decrease) in cash, cash equivalents and restricted cash	2,883	(8,728)
Cash, cash equivalents and restricted cash, beginning of period	22,179	37,191
Cash, cash equivalents and restricted cash end of period	25,062	28,463
Proceeds from issuance of preferred stock	$ 0	$ 144

UNAUDITED CONDENSED CONSOLIDATE

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY - USD ($) shares in Thousands, $ in Thousands	Total	Preferred Class B	Preferred Stock	Preferred StockPreferred Class B	Common Stock [Member]	Additional Paid-in Capital [Member]	Additional Paid-in Capital [Member]Preferred Class B	AOCI Attributable to Parent [Member]	Accumulated Foreign Currency Adjustment Attributable to Parent [Member]	Retained Earnings [Member]	Parent [Member]	Parent [Member]Preferred Class B	Noncontrolling Interest [Member]
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
Stock-based compensation	1,384					1,384					1,384
Foreign currency translation adjustments	(87)								$ (87)		(87)
Net loss										1,533	1,533		(319)
Stockholders' Equity, Other	(450)					(362)					(362)		(88)
Shares, Outstanding at Mar. 31, 2019					37,918
Net income (loss) including noncontrolling interests	1,214
Shares, Outstanding at Dec. 31, 2018					37,728
Foreign currency translation adjustments	(579)
Net loss	(7,669)
Net Income (Loss) Attributable to Noncontrolling Interest	(572)
Proceeds from issuance of preferred stock	0
Shares, Outstanding at Jun. 30, 2019					38,049
Net income (loss) including noncontrolling interests	(8,241)
Other Comprehensive Income (Loss), Net of Tax	(579)
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
Stock-based compensation	533					533					533
Foreign currency translation adjustments	(492)								(492)		(492)
Net loss	(9,202)									(9,202)			(253)
Net Income (Loss) Attributable to Noncontrolling Interest	(253)
Shares, Outstanding at Jun. 30, 2019					38,049
Net income (loss) including noncontrolling interests	(9,455)
Stockholders Equity, Capital Transaction Of Equity Method Investee	128					128
Other Comprehensive Income (Loss), Net of Tax	(492)
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest	49,468				$ 37	642,720		(61,697)		(531,678)	49,382		86
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest	38,273		$ 0		$ 38	644,070		(61,323)		(544,010)	38,775		(502)
Shares, Outstanding at Dec. 31, 2019			0		38,227
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period					4
Stock Issued During Period, Value, Stock Options Exercised	0					0					0
Stock-based compensation	380					380					380
Foreign currency translation adjustments	(907)								(907)		(907)
Net loss										(4,642)	(4,642)
Net Income (Loss) Attributable to Noncontrolling Interest													(47)
Shares, Outstanding at Mar. 31, 2020			8,065		38,231
Net income (loss) including noncontrolling interests	(4,689)
Issuance of Preferred B Stock (in shares)				8,065
Issuance of Preferred B Stock		$ 10,000		$ 8			$ 9,992					$ 10,000
Shares, Outstanding at Dec. 31, 2019			0		38,227
Foreign currency translation adjustments	(387)
Net loss	(9,754)
Net Income (Loss) Attributable to Noncontrolling Interest	(489)
Proceeds from issuance of preferred stock	10,000
Shares, Outstanding at Jun. 30, 2020			8,065		38,254
Net income (loss) including noncontrolling interests	(10,243)
Other Comprehensive Income (Loss), Net of Tax	(387)
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest	43,057		$ 8		$ 38	654,442		(62,230)		(548,652)	43,606		(549)
Shares, Outstanding at Mar. 31, 2020			8,065		38,231
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period					(23)
Stock Issued During Period, Value, Stock Options Exercised	(5)					(5)					(5)
Stock-based compensation	323					323					323
Foreign currency translation adjustments	520								$ 520		520
Net loss										(5,112)	(5,112)
Net Income (Loss) Attributable to Noncontrolling Interest	(442)												(442)
Shares, Outstanding at Jun. 30, 2020			8,065		38,254
Net income (loss) including noncontrolling interests	(5,554)
Other Comprehensive Income (Loss), Net of Tax	520
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest	$ 38,341		$ 8		$ 38	$ 654,760		$ (61,710)		$ (553,764)	$ 39,332		$ (991)

Description of Business and Sum

Description of Business and Summary of Significant Accounting Policies	6 Months Ended
	Jun. 30, 2020
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 provides digital media software and services to consumers, mobile carriers, device manufacturers, system integrators, and other businesses. Consumers use our digital media products and services to store, organize, play, manage and enjoy their digital media content, either directly from us or through our distribution partners. As of January 18, 2019, we hold an 84% interest in the Napster music business, which offers a comprehensive set of digital music products and services designed to provide consumers with broad access to digital music. 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., together with its subsidiaries, is referred to as "RealNetworks," the "Company," "we," "us," or "our." "RealPlayer," "RMHD," "RealMedia," "GameHouse," "Kontxt," "SAFR" and other trademarks of ours appearing in this report are our property. Basis of Presentation. The unaudited condensed consolidated financial statements include the accounts of the Company and its 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 six months ended June 30, 2020 are not necessarily indicative of the results that may be expected for any subsequent period or for the year ending December 31, 2020. 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). Liquidity and Capital Resources. Our unrestricted cash and cash equivalents balance at June 30, 2020 was $19.7 million and our operating loss for the quarter and six months ended June 30, 2020 was $4.9 million and $10.0 million, respectively. We have evaluated our current liquidity position in light of our history of declining revenue and operating losses as well as our near-term expectations of net negative cash flows from operating activities. While we currently believe existing unrestricted cash balances along with current availability on our revolving line of credit will be sufficient to allow us to meet our obligations for the next 12 months, our assessment is subject to inherent risks and uncertainties. Moreover, our operating forecast is partly dependent on factors that are outside of our control. Compounding these risks, uncertainties, and other factors are the potential effects of the recent coronavirus pandemic and related impacts on global commerce and financial markets. These conditions, when evaluated within the guidance of ASC 205-40, raise substantial doubt about our ability to meet our obligations over the 12 months from the date of this filing and, therefore, to continue as a going concern. Our financial statements do not include any adjustment relating to the recoverability and classification of recorded asset amounts or the amounts and classification of liabilities that might be necessary should we be unable to continue as a going concern. We have active plans to mitigate these conditions. Specifically, we plan to reduce negative cash flow through operating expense reductions, as well as through the deferral of certain obligations where we believe that we have the legal basis to do so. In addition, we are evaluating various strategic opportunities, which may include selling certain businesses or product lines, soliciting external investment into certain of our businesses, or seeking other strategic partnerships. Our plans are subject to inherent risks and uncertainties, which become significantly magnified when the effects of the current pandemic and related financial impacts are included in the assessment. Accordingly, there can be no assurance that our plans can be effectively implemented and, therefore, that the conditions can be effectively mitigated. 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, 2019 (the 10-K).

Revenue Recognition Revenue Rec

Revenue Recognition Revenue Recognition	6 Months Ended
	Jun. 30, 2020
Revenue from Contract with Customer [Abstract]
Revenue Recognition	Note 3 Revenue Recognition 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. Disaggregation of Revenue The following table presents our disaggregated revenue by source and segment (in thousands): Quarter Ended June 30, 2020 Six Months Ended June 30, 2020 Consumer Media Mobile Services Games Napster Consumer Media Mobile Services Games Napster Business Line Software License $ 1,702 $ 972 $ — $ — $ 3,722 $ 1,803 $ — $ — Subscription Services 898 5,489 2,730 23,339 1,827 11,348 5,500 49,662 Product Sales 261 — 3,712 — 483 — 6,690 — Advertising and Other 298 — 1,023 — 622 — 1,912 — Total $ 3,159 $ 6,461 $ 7,465 $ 23,339 $ 6,654 $ 13,151 $ 14,102 $ 49,662 Quarter Ended June 30, 2019 Six Months Ended June 30, 2019 Consumer Media Mobile Services Games Napster Consumer Media Mobile Services Games Napster Business Line Software License $ 944 $ 957 $ — $ — $ 1,679 $ 1,556 $ — $ — Subscription Services 1,040 6,040 3,073 28,583 2,128 12,380 6,058 52,920 Product Sales 206 — 2,177 — 425 — 4,165 — Advertising and Other 430 — 798 — 874 — 1,535 — Total $ 2,620 $ 6,997 $ 6,048 $ 28,583 $ 5,106 $ 13,936 $ 11,758 $ 52,920 The following table presents our disaggregated revenue by sales channel (in thousands): Quarter Ended June 30, 2020 Six Months Ended June 30, 2020 Consumer Media Mobile Services Games Napster Consumer Media Mobile Services Games Napster Sales Channel Business to Business $ 1,999 $ 6,362 $ 1,197 $ 10,438 $ 4,343 $ 12,946 $ 2,292 $ 23,289 Direct to Consumer 1,160 99 6,268 12,901 2,311 205 11,810 26,373 Total $ 3,159 $ 6,461 $ 7,465 $ 23,339 $ 6,654 $ 13,151 $ 14,102 $ 49,662 Quarter Ended June 30, 2019 Six Months Ended June 30, 2019 Consumer Media Mobile Services Games Napster Consumer Media Mobile Services Games Napster Sales Channel Business to Business $ 1,375 $ 6,881 $ 1,115 $ 13,804 $ 2,553 $ 13,698 $ 2,151 $ 25,899 Direct to Consumer 1,245 116 4,933 14,779 2,553 238 9,607 27,021 Total $ 2,620 $ 6,997 $ 6,048 $ 28,583 $ 5,106 $ 13,936 $ 11,758 $ 52,920 Contract Balances The timing of revenue recognition may differ from the timing of invoicing to our customers. We record accounts receivable when the right to consideration becomes unconditional, except for the passage of time. For certain contracts, payment schedules may exceed one year; for those contracts we recognize a long-term receivable. As of June 30, 2020 and December 31, 2019, our balance of long-term accounts receivable was $0.4 million and $0.3 million, respectively, and is included in other long-term assets on our condensed consolidated balance sheets. The increase in this balance from December 31, 2019 to June 30, 2020 is primarily due to a contract renewal in 2020. During the quarter and six months ended June 30, 2020, 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 June 30, 2020 and December 31, 2019, we had a deferred revenue balance of $6.6 million and $6.7 million, respectively, primarily due to deferred revenue associated with monthly subscriptions. Practical Expedients

Stock-Based Compensation

Stock-Based Compensation	3 Months Ended
	Jun. 30, 2020
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 Six Months Ended 2020 2019 2020 2019 Total stock-based compensation expense $ 323 $ 533 $ 703 $ 1,917 The fair value of RealNetworks options granted determined using the Black-Scholes model used the following weighted-average assumptions: Quarter Ended Six Months Ended 2020 2019 2020 2019 Expected dividend yield 0 % 0 % 0 % 0 % Risk-free interest rate 0.31 % 2.26 % 0.76 % 2.32 % Expected life (years) 4.0 3.8 4.0 4.1 Volatility 45 % 41 % 45 % 41 % The total stock-based compensation amounts for 2020 and 2019 disclosed above are recorded in their respective line items within operating expenses in the unaudited condensed consolidated statements of operations and comprehensive income (loss). Included in the expense for the six months ended June 30, 2019 was stock compensation expense recorded in the first quarter of 2019 related to our 2018 incentive bonuses paid in fully vested restricted stock units, which were authorized and granted in the first quarter of 2019. Our 2019 incentive bonuses were paid fully in cash, reducing stock compensation expense in the six months ended June 30, 2020 when compared to the six months ended June 30, 2019. As of June 30, 2020, there was $2.2 million of total unrecognized compensation cost, net of estimated forfeitures, related to stock awards. The unrecognized compensation cost is expected to be recognized over a weighted-average period of approximately 2.7 years.

Acquisitions (Notes)

Acquisitions (Notes)	Jan. 18, 2019
Business Combinations [Abstract]
Business Combination Disclosure [Text Block]	Note 5 Acquisitions Napster On January 18, 2019, RealNetworks acquired an additional 42% interest in Rhapsody International, Inc. (doing business as Napster) which brought our aggregate ownership to 84% of Napster's outstanding equity, thus giving RealNetworks a majority voting interest. Napster continues to operate as an independent business with its own board of directors, strategy and leadership team. Moreover, Napster's separate legal existence is further supported by each company's ongoing compliance with corporate formalities, the independent direction of Napster's activities, and the consistent treatment of each of RealNetworks and Napster as distinct organizations. For fiscal periods following the closing of the acquisition, we consolidate Napster's financial results into our financial statements, where Napster is reported as a separate segment. Napster, however, remains a distinct legal entity and RealNetworks assumes no ownership or control over the assets or liabilities of Napster. The 16% of Napster that we do not own is accounted for as a noncontrolling interest in our consolidated financial statements. As part of the transaction, we recorded a gain of $12.3 million recognized in Other income (expenses) in the Consolidated statement of operations in the first quarter of 2019. 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 with existing cash balances. With regard 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. 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 an estimated fair value of $11.6 million at the time of acquisition. The contingent consideration is adjusted quarterly to fair value through earnings. See Note 6 Fair Value Measurements for details on the adjustment to this liability. We recorded intangible assets of $23.7 million, consisting of trade name and trademarks, developed technology, customer relationships, and partner relationships. We recorded goodwill of $45.5 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. Future performance of the Napster business will factor into our intangibles and goodwill impairment analysis.

Fair Value Measurements

Fair Value Measurements	3 Months Ended
	Jun. 30, 2020
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 June 30, 2020 and December 31, 2019, 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 June 30, 2020 June 30, 2020 Level 1 Level 2 Level 3 Total Assets: Cash and cash equivalents: Cash $ 19,390 $ — $ — $ 19,390 $ 19,390 Money market funds 298 — — 298 298 Total cash and cash equivalents 19,688 — — 19,688 19,688 Restricted cash equivalents 3,500 1,874 — 5,374 5,374 Total assets $ 23,188 $ 1,874 $ — $ 25,062 $ 25,062 Liabilities: Accrued royalties, fulfillment and other current liabilities Napster acquisition contingent consideration $ — $ — $ 5,450 $ 5,450 N/A Other long-term liabilities Napster acquisition contingent consideration — — 6,950 6,950 N/A Total liabilities $ — $ — $ 12,400 $ 12,400 N/A Fair Value Measurements as of Amortized Cost as of December 31, 2019 December 31, 2019 Level 1 Level 2 Level 3 Total Assets: Cash and cash equivalents: Cash $ 14,887 $ — $ — $ 14,887 $ 14,887 Money market funds 1,918 — — 1,918 1,918 Total cash and cash equivalents 16,805 — — 16,805 16,805 Restricted cash equivalents 3,500 1,874 — 5,374 5,374 Total assets $ 20,305 $ 1,874 $ — $ 22,179 $ 22,179 Liabilities: Accrued royalties, fulfillment and other current liabilities Napster acquisition contingent consideration $ — $ — $ 2,800 $ 2,800 N/A Other long-term liabilities Napster acquisition contingent consideration — — 9,800 9,800 N/A Total liabilities $ — $ — $ 12,600 $ 12,600 N/A Restricted cash equivalents as of June 30, 2020 and December 31, 2019 relate to cash pledged as collateral against letters of credit in connection with lease agreements, and our Loan and Security Agreement ("Loan Agreement") requires us to maintain a minimum balance of $3.5 million unrestricted cash at the bank. See Note 8 Notes Payable and Long-term debt for additional details. Accrued royalties, fulfillment and other current liabilities and Other long-term liabilities as of June 30, 2020 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, this liability is adjusted quarterly to fair value through earnings. During the quarter ended June 30, 2020, we recorded the change in fair value of the contingent consideration of $0.1 million, as an increase to the total liability on the consolidated balance sheet and as general and administrative expense on the consolidated statement of operations. During the six months ended June 30, 2020, we recorded the change in fair value of the contingent consideration of $0.2 million, as a decrease to the total liability on the consolidated balance sheet and as a reduction of 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 six months ended June 30, 2020 and 2019, we did not record any impairments on those assets required to be measured at fair value on a non-recurring basis.

Accrued and Other Current Liabi

Accrued and Other Current Liabilities	6 Months Ended
	Jun. 30, 2020
Payables and Accruals [Abstract]
Accrued and Other Current Liabilities	Note 7 Accrued royalties, fulfillment and other current liabilities Accrued royalties, fulfillment and other current liabilities (in thousands): June 30, 2020 December 31, 2019 Royalties and other fulfillment costs $ 53,085 $ 55,750 Employee compensation, commissions and benefits 6,159 6,858 Sales, VAT and other taxes payable 2,069 2,547 Operating lease liabilities - current 4,388 4,805 Other 10,164 7,343 Total accrued royalties, fulfillment and other current liabilities $ 75,865 $ 77,303 Included in royalties and other fulfillment costs are Napster's accrued music royalties totaling $51.9 million and $54.2 million at June 30, 2020 and December 31, 2019, respectively. 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.

Notes Payable - Napster Notes P

Notes Payable - Napster Notes Payable - Napster	6 Months Ended
	Jun. 30, 2020
Related Party Transactions [Abstract]
Debt	Note 8 Notes Payable and Long-term debt The Coronavirus Aid, Relief and Economic Security (CARES) Act, signed into law in March 2020, established the Paycheck Protection Program (PPP) to provide a direct incentive for small businesses to keep workers on their payroll. Through the PPP, participating banks write loans to eligible businesses and loan amounts are forgiven to the extent that employee retention criteria are met and proceeds are used to cover eligible costs over an elected 8-week or 24-week measurement period following loan funding. In April 2020, following an assessment of eligibility and approval of its Board of Directors, RealNetworks issued a promissory note to a participating bank in the principal amount of $2.9 million pursuant to the PPP. The note has a maturity of 2 years, an interest rate of 1.0%, no pre-payment penalty, a six-month deferment period, and is eligible for forgiveness pursuant to PPP guidelines. Separately, in May 2020, following its own assessment of eligibility and approval of the Napster Board of Directors, Napster issued a promissory note to a participating bank in the principal amount of $1.7 million, pursuant to the PPP. The Napster note has a maturity of 2 years, an interest rate of 1.0%, no pre-payment penalty, a six-month deferment period, and is eligible for forgiveness pursuant to PPP guidelines. On April 28, 2020, the Secretary of the Treasury and Small Business Administration (SBA) announced that the government will review all PPP loans of more than $2.0 million before there is forgiveness. The RealNetworks and Napster PPP loans will be derecognized upon repayment of the loans in accordance with their terms and/or upon confirmation of forgiveness from the SBA. 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 $10.0 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 percentage 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 to be updated annually, and maintaining a minimum balance of $3.5 million unrestricted cash at the bank. As of June 30, 2020, RealNetworks had $3.9 million outstanding debt from the revolving line of credit, which was loaned to Napster bearing interest and fees commensurate with our costs. See Note 13 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 are being amortized over the term of the debt. The unamortized fees were $0.3 million at June 30, 2020 and are included in Deferred costs, 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 June 30, 2020, Napster had $4.5 million borrowings outstanding with an interest rate of 2.25%.

Restructuring Charges

Restructuring Charges	3 Months Ended
	Jun. 30, 2020
Restructuring and Related Activities [Abstract]
Restructuring Charges	Note 9 Restructuring Charges Restructuring and other charges in 2020 and 2019 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. Included in employee separation costs was restructuring expense of $0.3 million for the six months ended June 30, 2020 related to and reported in the Napster segment. Restructuring charges are as follows (in thousands): Employee Separation and Other Costs Asset Related and Other Costs Total Costs incurred and charged to expense for the six months ended June 30, 2020 $ 1,012 $ 78 $ 1,090 Costs incurred and charged to expense for the six months ended June 30, 2019 $ 344 $ 552 $ 896 Changes to the accrued restructuring liability (which is included in Accrued royalties, fulfillment and other current liabilities) for 2020 are as follows (in thousands): Employee Separation Costs Asset Related and Other Costs Total Accrued liability at December 31, 2019 $ 322 $ 174 $ 496 Costs incurred and charged to expense for the six months ended June 30, 2020, excluding noncash charges 1,012 — 1,012 Cash payments (871) (174) (1,045) Accrued liability at June 30, 2020 $ 463 $ — $ 463

Earnings (Loss) Per Share

Earnings (Loss) Per Share	6 Months Ended
	Jun. 30, 2020
Earnings Per Share [Abstract]
Earnings (Loss) Per Share	Note 10 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 Six Months Ended 2020 2019 2020 2019 Net income (loss) attributable to RealNetworks $ (5,112) $ (9,202) $ (9,754) $ (7,669) Weighted average common shares outstanding used to compute basic EPS 38,243 37,948 38,236 37,885 Dilutive effect of stock based awards — — — — Weighted average common shares outstanding used to compute diluted EPS 38,243 37,948 38,236 37,885 Basic EPS attributable to RealNetworks $ (0.13) $ (0.24) $ (0.26) $ (0.20) Diluted EPS attributable to RealNetworks $ (0.13) $ (0.24) $ (0.26) $ (0.20) During the quarter and six months ended June 30, 2020, 7.1 million and 7.4 million shares of common stock, respectively, of potentially issuable shares from common stock awards were excluded from the calculation of diluted EPS because of their antidilutive effect. During the quarter and six months ended June 30, 2019, 7.7 million and 7.3 million shares of common stock, respectively, of potentially issuable shares from common stock awards were excluded from the calculation of diluted EPS because of their antidilutive effect. In February 2020, Mr. Glaser invested approximately $10.0 million in RealNetworks in exchange for the issuance to him of 8,064,516 shares of Series B Preferred Stock. The Series B Preferred Stock is convertible into common stock on a one-to-one basis subject to the limitation described in Note 13 Related Party Transactions. During the quarter and six months ended June 30, 2020, these shares were also excluded from the calculation of diluted EPS because of their antidilutive effect.

Commitments and Contingencies

Commitments and Contingencies	6 Months Ended
	Jun. 30, 2020
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	Note 11 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. On April 6, 2020, RealNetworks Asia Pacific Co., Ltd. received notice of a civil lawsuit filed by Korean Music Copyright Association (KOMCA) seeking damages of $2.6 million. Also named as a defendant in the lawsuit is Kakao M Corp (formerly known as LOEN Entertainment Corp.), one of the largest media publishing companies in Korea, which operates the Melon music platform. The claim is for a late payment penalty under a music licensing contract, pursuant to which, from 2004 to 2017, RealNetworks licensed music for its services to LOEN for its Melon platform. The current lawsuit relates solely to the late payment of music licensing fees under the contract; the underlying music licensing fees were paid by Kakao M to KOMCA in a separate settlement prior to KOMCA’s filing of this lawsuit. While we believe we have meritorious defenses to this lawsuit and intend to vigorously defend RealNetworks, litigation is inherently uncertain and we cannot predict the outcome of this matter. We have not recorded an accrual related to this settlement as of June 30, 2020 as it is early in the litigation and any potential liability cannot be reasonably estimated. 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. In May 2019, public notice was posted about the settlement informing purported class members that they could make claims or object to the settlement, and the claims period ended on December 31, 2019. The final calculation is not yet complete, but based on preliminary results, the claimed damages are not expected to be material. Valid claims are currently expected to be paid by Napster in the next 12 months.

Segment Information

Segment Information	6 Months Ended
	Jun. 30, 2020
Segment Reporting [Abstract]
Segment Information	Note 12 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 in-game virtual goods, mobile games, games licenses, games subscription services, and in-game advertising and advertising on game sites; and (4) Napster, which includes 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 may also include restructuring charges and stock compensation charges. As stated in Note 5 Acquisitions, Napster operates as an independent company and, therefore, RealNetworks allocates no corporate 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 six months ended June 30, 2020 and 2019 (in thousands): Consumer Media Quarter Ended Six Months Ended 2020 2019 2020 2019 Revenue $ 3,159 $ 2,620 $ 6,654 $ 5,106 Cost of revenue 519 803 1,130 1,636 Gross profit 2,640 1,817 5,524 3,470 Operating expenses 2,204 2,877 4,662 5,996 Operating income (loss) $ 436 $ (1,060) $ 862 $ (2,526) Mobile Services Quarter Ended Six Months Ended 2020 2019 2020 2019 Revenue $ 6,461 $ 6,997 $ 13,151 $ 13,936 Cost of revenue 1,782 1,865 3,478 3,913 Gross profit 4,679 5,132 9,673 10,023 Operating expenses 5,682 7,438 13,270 14,999 Operating income (loss) $ (1,003) $ (2,306) $ (3,597) $ (4,976) Games Quarter Ended Six Months Ended 2020 2019 2020 2019 Revenue $ 7,465 $ 6,048 $ 14,102 $ 11,758 Cost of revenue 1,958 1,655 3,752 3,325 Gross profit 5,507 4,393 10,350 8,433 Operating expenses 4,976 5,288 9,899 10,325 Operating income (loss) $ 531 $ (895) $ 451 $ (1,892) Napster Quarter Ended Six Months Ended 2020 2019 2020 2019 Revenue $ 23,339 $ 28,583 $ 49,662 $ 52,920 Cost of revenue 18,770 23,026 38,842 43,422 Gross profit 4,569 5,557 10,820 9,498 Operating expenses 6,609 6,638 13,070 12,170 Operating income (loss) $ (2,040) $ (1,081) $ (2,250) $ (2,672) Corporate Quarter Ended Six Months Ended 2020 2019 2020 2019 Cost of revenue $ 4 $ (67) $ 7 $ (144) Operating expenses 2,819 4,116 5,446 8,373 Operating income (loss) $ (2,823) $ (4,049) $ (5,453) $ (8,229) Our customers consist primarily of consumers and corporations located in the U.S., Europe, and various foreign countries (Rest of the World). Revenue by geographic region (in thousands): Quarter Ended Six Months Ended 2020 2019 2020 2019 United States $ 20,785 $ 21,322 $ 43,205 $ 40,292 Europe 14,524 17,097 29,362 32,481 Rest of the World 5,115 5,829 11,002 10,947 Total net revenue $ 40,424 $ 44,248 $ 83,569 $ 83,720 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: June 30, December 31, United States $ 79,767 $ 83,342 Europe 10,224 10,504 Rest of the World 1,815 2,281 Total long-lived assets $ 91,806 $ 96,127

Related Party Transactions

Related Party Transactions	6 Months Ended
	Jun. 30, 2020
Related Party Transactions [Abstract]
Related Party Transactions	Note 13 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, although Napster continues to operate as an independent business with its own board of directors, strategy, and leadership team, 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 8 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 RealNetworks' 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. In 2019, Mr. Glaser directly invested $0.8 million in one of our subsidiaries in exchange for shares of preferred stock of that entity. The subsidiary is developing a platform that transforms the experience of viewing video entertainment into a social, connected playground. As of June 30, 2020, RealNetworks owned approximately 82% of the subsidiary's outstanding equity, and we consolidate its financial results into our financial statements. The financial results of the subsidiary are reported in our Consumer Media segment. In February 2020, we entered into a Series B Preferred Stock Purchase Agreement with Mr. Glaser, pursuant to which Mr. Glaser invested approximately $10.0 million in RealNetworks in exchange for the issuance to him of 8,064,516 shares of Series B Preferred Stock. The Series B Preferred Stock is non-voting and is convertible into common stock on a one-to-one basis, provided, however, that no conversion is permitted in the event that such conversion would cause Mr. Glaser’s beneficial ownership of our common stock to exceed the 38.5% threshold set forth in our Second Amended and Restated Shareholder Rights Plan dated November 30, 2018. The Series B Preferred Stock has no liquidation preference and no preferred dividend.

Subsequent Event

Subsequent Event	3 Months Ended
	Jun. 30, 2020
Subsequent Events [Abstract]
Subsequent Event	Note 14 Subsequent Events In July 2020, Mr. Glaser directly invested an additional $0.6 million into the RealNetworks subsidiary that is developing a platform that transforms the experience of viewing video entertainment into a social, connected playground. This funding was in addition to $0.8 million that Mr. Glaser had previously invested. See Note 13 Related Party Transactions for additional details. In August 2020, this same subsidiary entered into agreements to receive $0.7 million in funding from outside investors.

Description of Business and S_2

Description of Business and Summary of Significant Accounting Policies (Policies)	3 Months Ended	6 Months Ended
	Jun. 30, 2020	Jun. 30, 2020
Accounting Policies [Abstract]
Description of Business	Description of Business. RealNetworks provides digital media software and services to consumers, mobile carriers, device manufacturers, system integrators, and other businesses. Consumers use our digital media products and services to store, organize, play, manage and enjoy their digital media content, either directly from us or through our distribution partners. As of January 18, 2019, we hold an 84% interest in the Napster music business, which offers a comprehensive set of digital music products and services designed to provide consumers with broad access to digital music. 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.
Use of Estimates	Use of Estimates. The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.
Segments		We manage our business and report revenue and operating income (loss) in 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 in-game virtual goods, mobile games, games licenses, games subscription services, and in-game advertising and advertising on game sites; and (4) Napster, which includes 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 may also include restructuring charges and stock compensation charges. As stated in Note 5 Acquisitions, Napster operates as an independent company and, therefore, RealNetworks allocates no corporate 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 Revenue R_2

Revenue Recognition Revenue Recognition (Tables)	6 Months Ended
	Jun. 30, 2020
Revenue from Contract with Customer [Abstract]
Schedule of Segment Reporting Information, by Segment	Segment results for the quarters and six months ended June 30, 2020 and 2019 (in thousands): Consumer Media Quarter Ended Six Months Ended 2020 2019 2020 2019 Revenue $ 3,159 $ 2,620 $ 6,654 $ 5,106 Cost of revenue 519 803 1,130 1,636 Gross profit 2,640 1,817 5,524 3,470 Operating expenses 2,204 2,877 4,662 5,996 Operating income (loss) $ 436 $ (1,060) $ 862 $ (2,526) Mobile Services Quarter Ended Six Months Ended 2020 2019 2020 2019 Revenue $ 6,461 $ 6,997 $ 13,151 $ 13,936 Cost of revenue 1,782 1,865 3,478 3,913 Gross profit 4,679 5,132 9,673 10,023 Operating expenses 5,682 7,438 13,270 14,999 Operating income (loss) $ (1,003) $ (2,306) $ (3,597) $ (4,976) Games Quarter Ended Six Months Ended 2020 2019 2020 2019 Revenue $ 7,465 $ 6,048 $ 14,102 $ 11,758 Cost of revenue 1,958 1,655 3,752 3,325 Gross profit 5,507 4,393 10,350 8,433 Operating expenses 4,976 5,288 9,899 10,325 Operating income (loss) $ 531 $ (895) $ 451 $ (1,892) Napster Quarter Ended Six Months Ended 2020 2019 2020 2019 Revenue $ 23,339 $ 28,583 $ 49,662 $ 52,920 Cost of revenue 18,770 23,026 38,842 43,422 Gross profit 4,569 5,557 10,820 9,498 Operating expenses 6,609 6,638 13,070 12,170 Operating income (loss) $ (2,040) $ (1,081) $ (2,250) $ (2,672) Corporate Quarter Ended Six Months Ended 2020 2019 2020 2019 Cost of revenue $ 4 $ (67) $ 7 $ (144) Operating expenses 2,819 4,116 5,446 8,373 Operating income (loss) $ (2,823) $ (4,049) $ (5,453) $ (8,229)
Disaggregation of Revenue	Disaggregation of Revenue The following table presents our disaggregated revenue by source and segment (in thousands): Quarter Ended June 30, 2020 Six Months Ended June 30, 2020 Consumer Media Mobile Services Games Napster Consumer Media Mobile Services Games Napster Business Line Software License $ 1,702 $ 972 $ — $ — $ 3,722 $ 1,803 $ — $ — Subscription Services 898 5,489 2,730 23,339 1,827 11,348 5,500 49,662 Product Sales 261 — 3,712 — 483 — 6,690 — Advertising and Other 298 — 1,023 — 622 — 1,912 — Total $ 3,159 $ 6,461 $ 7,465 $ 23,339 $ 6,654 $ 13,151 $ 14,102 $ 49,662 Quarter Ended June 30, 2019 Six Months Ended June 30, 2019 Consumer Media Mobile Services Games Napster Consumer Media Mobile Services Games Napster Business Line Software License $ 944 $ 957 $ — $ — $ 1,679 $ 1,556 $ — $ — Subscription Services 1,040 6,040 3,073 28,583 2,128 12,380 6,058 52,920 Product Sales 206 — 2,177 — 425 — 4,165 — Advertising and Other 430 — 798 — 874 — 1,535 — Total $ 2,620 $ 6,997 $ 6,048 $ 28,583 $ 5,106 $ 13,936 $ 11,758 $ 52,920 The following table presents our disaggregated revenue by sales channel (in thousands): Quarter Ended June 30, 2020 Six Months Ended June 30, 2020 Consumer Media Mobile Services Games Napster Consumer Media Mobile Services Games Napster Sales Channel Business to Business $ 1,999 $ 6,362 $ 1,197 $ 10,438 $ 4,343 $ 12,946 $ 2,292 $ 23,289 Direct to Consumer 1,160 99 6,268 12,901 2,311 205 11,810 26,373 Total $ 3,159 $ 6,461 $ 7,465 $ 23,339 $ 6,654 $ 13,151 $ 14,102 $ 49,662 Quarter Ended June 30, 2019 Six Months Ended June 30, 2019 Consumer Media Mobile Services Games Napster Consumer Media Mobile Services Games Napster Sales Channel Business to Business $ 1,375 $ 6,881 $ 1,115 $ 13,804 $ 2,553 $ 13,698 $ 2,151 $ 25,899 Direct to Consumer 1,245 116 4,933 14,779 2,553 238 9,607 27,021 Total $ 2,620 $ 6,997 $ 6,048 $ 28,583 $ 5,106 $ 13,936 $ 11,758 $ 52,920

Stock-Based Compensation (Table

Stock-Based Compensation (Tables)	3 Months Ended
	Jun. 30, 2020
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 Six Months Ended 2020 2019 2020 2019 Total stock-based compensation expense $ 323 $ 533 $ 703 $ 1,917
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 Six Months Ended 2020 2019 2020 2019 Expected dividend yield 0 % 0 % 0 % 0 % Risk-free interest rate 0.31 % 2.26 % 0.76 % 2.32 % Expected life (years) 4.0 3.8 4.0 4.1 Volatility 45 % 41 % 45 % 41 %

Fair Value Measurements (Tables

Fair Value Measurements (Tables)	3 Months Ended
	Jun. 30, 2020
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 June 30, 2020 and December 31, 2019, 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 June 30, 2020 June 30, 2020 Level 1 Level 2 Level 3 Total Assets: Cash and cash equivalents: Cash $ 19,390 $ — $ — $ 19,390 $ 19,390 Money market funds 298 — — 298 298 Total cash and cash equivalents 19,688 — — 19,688 19,688 Restricted cash equivalents 3,500 1,874 — 5,374 5,374 Total assets $ 23,188 $ 1,874 $ — $ 25,062 $ 25,062 Liabilities: Accrued royalties, fulfillment and other current liabilities Napster acquisition contingent consideration $ — $ — $ 5,450 $ 5,450 N/A Other long-term liabilities Napster acquisition contingent consideration — — 6,950 6,950 N/A Total liabilities $ — $ — $ 12,400 $ 12,400 N/A Fair Value Measurements as of Amortized Cost as of December 31, 2019 December 31, 2019 Level 1 Level 2 Level 3 Total Assets: Cash and cash equivalents: Cash $ 14,887 $ — $ — $ 14,887 $ 14,887 Money market funds 1,918 — — 1,918 1,918 Total cash and cash equivalents 16,805 — — 16,805 16,805 Restricted cash equivalents 3,500 1,874 — 5,374 5,374 Total assets $ 20,305 $ 1,874 $ — $ 22,179 $ 22,179 Liabilities: Accrued royalties, fulfillment and other current liabilities Napster acquisition contingent consideration $ — $ — $ 2,800 $ 2,800 N/A Other long-term liabilities Napster acquisition contingent consideration — — 9,800 9,800 N/A Total liabilities $ — $ — $ 12,600 $ 12,600 N/A

Accrued and Other Current Lia_2

Accrued and Other Current Liabilities (Tables)	3 Months Ended
	Jun. 30, 2020
Payables and Accruals [Abstract]
Accrued and Other Liabilities	Accrued royalties, fulfillment and other current liabilities (in thousands): June 30, 2020 December 31, 2019 Royalties and other fulfillment costs $ 53,085 $ 55,750 Employee compensation, commissions and benefits 6,159 6,858 Sales, VAT and other taxes payable 2,069 2,547 Operating lease liabilities - current 4,388 4,805 Other 10,164 7,343 Total accrued royalties, fulfillment and other current liabilities $ 75,865 $ 77,303

Restructuring Charges (Tables)

Restructuring Charges (Tables)	3 Months Ended
	Jun. 30, 2020
Restructuring and Related Activities [Abstract]
Schedule of Restructuring Charges by Type of Cost	Restructuring charges are as follows (in thousands): Employee Separation and Other Costs Asset Related and Other Costs Total Costs incurred and charged to expense for the six months ended June 30, 2020 $ 1,012 $ 78 $ 1,090 Costs incurred and charged to expense for the six months ended June 30, 2019 $ 344 $ 552 $ 896 Changes to the accrued restructuring liability (which is included in Accrued royalties, fulfillment and other current liabilities) for 2020 are as follows (in thousands): Employee Separation Costs Asset Related and Other Costs Total Accrued liability at December 31, 2019 $ 322 $ 174 $ 496 Costs incurred and charged to expense for the six months ended June 30, 2020, excluding noncash charges 1,012 — 1,012 Cash payments (871) (174) (1,045) Accrued liability at June 30, 2020 $ 463 $ — $ 463

Earnings (Loss) Per Share (Tabl

Earnings (Loss) Per Share (Tables)	3 Months Ended
	Jun. 30, 2020
Earnings Per Share [Abstract]
Calculation of Basic and Diluted Earnings Per Share	Basic and diluted EPS (in thousands, except per share amounts): Quarter Ended Six Months Ended 2020 2019 2020 2019 Net income (loss) attributable to RealNetworks $ (5,112) $ (9,202) $ (9,754) $ (7,669) Weighted average common shares outstanding used to compute basic EPS 38,243 37,948 38,236 37,885 Dilutive effect of stock based awards — — — — Weighted average common shares outstanding used to compute diluted EPS 38,243 37,948 38,236 37,885 Basic EPS attributable to RealNetworks $ (0.13) $ (0.24) $ (0.26) $ (0.20) Diluted EPS attributable to RealNetworks $ (0.13) $ (0.24) $ (0.26) $ (0.20)

Segment Information (Tables)

Segment Information (Tables)	6 Months Ended
	Jun. 30, 2020
Segment Reporting [Abstract]
Segment Results	Segment results for the quarters and six months ended June 30, 2020 and 2019 (in thousands): Consumer Media Quarter Ended Six Months Ended 2020 2019 2020 2019 Revenue $ 3,159 $ 2,620 $ 6,654 $ 5,106 Cost of revenue 519 803 1,130 1,636 Gross profit 2,640 1,817 5,524 3,470 Operating expenses 2,204 2,877 4,662 5,996 Operating income (loss) $ 436 $ (1,060) $ 862 $ (2,526) Mobile Services Quarter Ended Six Months Ended 2020 2019 2020 2019 Revenue $ 6,461 $ 6,997 $ 13,151 $ 13,936 Cost of revenue 1,782 1,865 3,478 3,913 Gross profit 4,679 5,132 9,673 10,023 Operating expenses 5,682 7,438 13,270 14,999 Operating income (loss) $ (1,003) $ (2,306) $ (3,597) $ (4,976) Games Quarter Ended Six Months Ended 2020 2019 2020 2019 Revenue $ 7,465 $ 6,048 $ 14,102 $ 11,758 Cost of revenue 1,958 1,655 3,752 3,325 Gross profit 5,507 4,393 10,350 8,433 Operating expenses 4,976 5,288 9,899 10,325 Operating income (loss) $ 531 $ (895) $ 451 $ (1,892) Napster Quarter Ended Six Months Ended 2020 2019 2020 2019 Revenue $ 23,339 $ 28,583 $ 49,662 $ 52,920 Cost of revenue 18,770 23,026 38,842 43,422 Gross profit 4,569 5,557 10,820 9,498 Operating expenses 6,609 6,638 13,070 12,170 Operating income (loss) $ (2,040) $ (1,081) $ (2,250) $ (2,672) Corporate Quarter Ended Six Months Ended 2020 2019 2020 2019 Cost of revenue $ 4 $ (67) $ 7 $ (144) Operating expenses 2,819 4,116 5,446 8,373 Operating income (loss) $ (2,823) $ (4,049) $ (5,453) $ (8,229)
Revenue by Geographic Region	Our customers consist primarily of consumers and corporations located in the U.S., Europe, and various foreign countries (Rest of the World). Revenue by geographic region (in thousands): Quarter Ended Six Months Ended 2020 2019 2020 2019 United States $ 20,785 $ 21,322 $ 43,205 $ 40,292 Europe 14,524 17,097 29,362 32,481 Rest of the World 5,115 5,829 11,002 10,947 Total net revenue $ 40,424 $ 44,248 $ 83,569 $ 83,720
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: June 30, December 31, United States $ 79,767 $ 83,342 Europe 10,224 10,504 Rest of the World 1,815 2,281 Total long-lived assets $ 91,806 $ 96,127

Description of Business and S_3

Description of Business and Summary of Significant Accounting Policies (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019	Dec. 31, 2019
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Cash and cash equivalents	$ 19,688		$ 19,688		$ 16,805
Operating income (loss)	$ (4,899)	$ (9,391)	$ (9,987)	$ (20,295)

Revenue Recognition (Additional

Revenue Recognition (Additional Information) (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019	Dec. 31, 2019
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Accumulated deficit	$ (553,764)		$ (553,764)		$ (544,010)
Revenue	40,424	$ 44,248	83,569	$ 83,720
Long-term accounts receivable	400		400		300
Deferred revenue	$ 6,600		$ 6,600		$ 6,700

Revenue Recognition (Disaggrega

Revenue Recognition (Disaggregation of Revenue) (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019
Disaggregation of Revenue [Line Items]
Revenue	$ 40,424	$ 44,248	$ 83,569	$ 83,720
Consumer Media
Disaggregation of Revenue [Line Items]
Revenue	3,159	2,620	6,654	5,106
Consumer Media | Business to Business
Disaggregation of Revenue [Line Items]
Revenue	1,999	1,375	4,343	2,553
Consumer Media | Direct to Consumer
Disaggregation of Revenue [Line Items]
Revenue	1,160	1,245	2,311	2,553
Consumer Media | Software License
Disaggregation of Revenue [Line Items]
Revenue	1,702	944	3,722	1,679
Consumer Media | Subscription Services
Disaggregation of Revenue [Line Items]
Revenue	898	1,040	1,827	2,128
Consumer Media | Product Sales
Disaggregation of Revenue [Line Items]
Revenue	261	206	483	425
Consumer Media | Advertising and Other
Disaggregation of Revenue [Line Items]
Revenue	298	430	622	874
Mobile Services
Disaggregation of Revenue [Line Items]
Revenue	6,461	6,997	13,151	13,936
Mobile Services | Business to Business
Disaggregation of Revenue [Line Items]
Revenue	6,362	6,881	12,946	13,698
Mobile Services | Direct to Consumer
Disaggregation of Revenue [Line Items]
Revenue	99	116	205	238
Mobile Services | Software License
Disaggregation of Revenue [Line Items]
Revenue	972	957	1,803	1,556
Mobile Services | Subscription Services
Disaggregation of Revenue [Line Items]
Revenue	5,489	6,040	11,348	12,380
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	7,465	6,048	14,102	11,758
Games | Business to Business
Disaggregation of Revenue [Line Items]
Revenue	1,197	1,115	2,292	2,151
Games | Direct to Consumer
Disaggregation of Revenue [Line Items]
Revenue	6,268	4,933	11,810	9,607
Games | Software License
Disaggregation of Revenue [Line Items]
Revenue	0	0	0	0
Games | Subscription Services
Disaggregation of Revenue [Line Items]
Revenue	2,730	3,073	5,500	6,058
Games | Product Sales
Disaggregation of Revenue [Line Items]
Revenue	3,712	2,177	6,690	4,165
Games | Advertising and Other
Disaggregation of Revenue [Line Items]
Revenue	1,023	798	1,912	1,535
Napster
Disaggregation of Revenue [Line Items]
Revenue	23,339	28,583	49,662	52,920
Napster | Business to Business
Disaggregation of Revenue [Line Items]
Revenue	10,438	13,804	23,289	25,899
Napster | Direct to Consumer
Disaggregation of Revenue [Line Items]
Revenue	12,901	14,779	26,373	27,021
Napster | Software License
Disaggregation of Revenue [Line Items]
Revenue	0		0
Napster | Subscription Services
Disaggregation of Revenue [Line Items]
Revenue	23,339	28,583	49,662	52,920
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

Stock-Based Compensation (Recog

Stock-Based Compensation (Recognized Stock-Based Compensation Expense) (Detail) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019
Share-based Payment Arrangement [Abstract]
Total stock-based compensation expense		$ 533	$ 703	$ 1,917
Employee Benefits and Share-based Compensation	$ 323

Stock-Based Compensation (Weigh

Stock-Based Compensation (Weighted-Average Assumptions Used to Determine Fair Value of Options Granted) (Detail) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019
Share-based Payment Arrangement [Abstract]
Expected dividend yield	0.00%	0.00%	0.00%	0.00%
Risk-free interest rate	0.31%	2.26%	0.76%	2.32%
Expected life	4 years	3 years 9 months 18 days	4 years	4 years 1 month 6 days
Volatility	45.00%	41.00%	45.00%	41.00%
Proceeds from issuance of preferred stock			$ 0	$ 144

Stock-Based Compensation (Addit

Stock-Based Compensation (Additional Information) (Detail) $ in Millions	3 Months Ended
	Jun. 30, 2020USD ($)
Share-based Payment Arrangement [Abstract]
Total unrecognized compensation cost	$ 2.2
Total unrecognized compensation cost, expected recognition period (in years)	2 years 8 months 12 days

Acquisitions - Narrative (Detai

Acquisitions - Narrative (Details) - USD ($)	Jan. 18, 2019	Dec. 31, 2019	Jun. 30, 2020
Business Acquisition [Line Items]
Goodwill acquired during period	$ 45,500,000
Business Combination, Step Acquisition, Remeasurement Gain and Gains (Losses) From Other Preexisting Relationships		$ 12,300,000
Rhapsody America LLC
Business Acquisition [Line Items]
Percentage of shares acquired	42.00%
Interest acquired, percent	84.00%
Cash consideration	$ 1,000,000
Amount paid at closing	200,000
Additional cash payment	14,000,000
Proceeds from divestiture of interest in consolidated subsidiaries	15,000,000
Additional cash payment, maximum amount	40,000,000
Total liabilities	11,600,000
Acquired finite lived intangible assets	23,700,000
Rhapsody America LLC | Rhapsody America LLC
Business Acquisition [Line Items]
Noncontrolling interest, ownership percent by noncontrolling interest			16.00%
Maximum | Rhapsody America LLC
Business Acquisition [Line Items]
Additional cash payment	25,000,000
Minimum | Rhapsody America LLC
Business Acquisition [Line Items]
Additional cash payment	15,000,000
Proceeds from divestiture of interest in consolidated subsidiaries	$ 60,000,000

Fair Value Measurements (Financ

Fair Value Measurements (Financial Assets Measured at Fair Value on a Recurring Basis) (Detail) - USD ($) $ in Thousands	Jun. 30, 2020	Dec. 31, 2019
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Financial assets fair value	$ 25,062	$ 22,179
Amortized Cost	25,062	22,179
Cash and Cash Equivalents
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Financial assets fair value	19,688	16,805
Amortized Cost	19,688	16,805
Cash and Cash Equivalents | Cash
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Financial assets fair value	19,390	14,887
Amortized Cost	19,390	14,887
Cash and Cash Equivalents | Money market funds
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Financial assets fair value	298	1,918
Amortized Cost	298	1,918
Restricted cash equivalents
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Financial assets fair value	5,374	5,374
Amortized Cost	5,374	5,374
Level 1
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Financial assets fair value	23,188	20,305
Level 1 | Cash and Cash Equivalents
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Financial assets fair value	19,688	16,805
Level 1 | Cash and Cash Equivalents | Cash
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Financial assets fair value	19,390	14,887
Level 1 | Cash and Cash Equivalents | Money market funds
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Financial assets fair value	298	1,918
Level 1 | Restricted cash equivalents
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Financial assets fair value	3,500	3,500
Level 2
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Financial assets fair value	1,874	1,874
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 | Restricted cash equivalents
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Financial assets fair value	1,874	1,874
Level 3
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Financial assets fair value	0	0
Level 3 | Cash and Cash Equivalents
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Financial assets fair value	0	0
Level 3 | Cash and Cash Equivalents | Cash
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Financial assets fair value	0	0
Level 3 | Cash and Cash Equivalents | Money market funds
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Financial assets fair value	0	0
Level 3 | Restricted cash equivalents
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Financial assets fair value	0	0
Napster
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Accrued royalties, fulfillment and other current liabilities, Napster acquisition contingent consideration	5,450	2,800
Other long-term liabilities, Napster acquisition contingent consideration	6,950	9,800
Total liabilities	12,400	12,600
Napster | Level 1
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Accrued royalties, fulfillment and other current liabilities, Napster acquisition contingent consideration	0	0
Other long-term liabilities, Napster acquisition contingent consideration	0	0
Total liabilities	0	0
Napster | Level 2
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Accrued royalties, fulfillment and other current liabilities, Napster acquisition contingent consideration	0	0
Other long-term liabilities, Napster acquisition contingent consideration	0	0
Total liabilities	0	0
Napster | Level 3
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Accrued royalties, fulfillment and other current liabilities, Napster acquisition contingent consideration	5,450	2,800
Other long-term liabilities, Napster acquisition contingent consideration	6,950	9,800
Total liabilities	$ 12,400	$ 12,600

Fair Value Measurements - Addit

Fair Value Measurements - Additional Information (Detail) - USD ($) $ in Thousands	3 Months Ended	6 Months Ended
	Jun. 30, 2020	Jun. 30, 2020	Jun. 30, 2019
Fair Value Disclosures [Abstract]
Unrestricted Cash And Cash Equivalents Minimum Amount Required	$ 3,500	$ 3,500
Fair value adjustments to contingent consideration liability	(100)	(200)	$ 300
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Fair value adjustments to contingent consideration liability	$ (100)	$ (200)	$ 300

Accrued and Other Current Lia_3

Accrued and Other Current Liabilities (Detail) - USD ($) $ in Thousands	Jun. 30, 2020	Dec. 31, 2019
Product Warranty Liability [Line Items]
Royalties and other fulfillment costs	$ 53,085	$ 55,750
Employee compensation, commissions and benefits	6,159	6,858
Sales, VAT and other taxes payable	2,069	2,547
Operating Lease, Liability, Current	4,388	4,805
Other	10,164	7,343
Total accrued and other liabilities	75,865	77,303
Napster
Product Warranty Liability [Line Items]
Royalties and other fulfillment costs	51,900	54,200
Prepaid Royalties	$ 900	$ 2,000

Notes Payable - Napster (Detail

Notes Payable - Napster (Details) - USD ($)	1 Months Ended		3 Months Ended	6 Months Ended
	May 31, 2020	Apr. 30, 2020	Mar. 31, 2019	Jun. 30, 2020	Dec. 31, 2019	Aug. 31, 2019	Dec. 31, 2018
Related Party Transaction [Line Items]
Line of Credit Facility, Maximum Borrowing Capacity						$ 10,000,000
Related Party Transaction, Accounts Receivable Purchasing Agreement, Percent Upfront			90.00%
Unrestricted Cash And Cash Equivalents Minimum Amount Required				$ 3,500,000
Long-term Debt				8,495,000	$ 3,900,000
Debt Issuance Costs, Line of Credit Arrangements, Gross				600,000
Notes payable				4,495,000	$ 7,331,000
Notes Payable to Banks [Member]
Related Party Transaction [Line Items]
Proceeds from issuance of debt		$ 2,900,000
Proceeds from issuance of debt		$ 2,900,000
Other Current Assets [Member]
Related Party Transaction [Line Items]
Unamortized Debt Issuance Expense				$ 300,000
Napster | Notes Payable to Banks [Member]
Related Party Transaction [Line Items]
Proceeds from issuance of debt	$ 1,700,000
Proceeds from issuance of debt	$ 1,700,000
Revolving Credit Facility [Member]
Related Party Transaction [Line Items]
Debt Instrument, Description of Variable Rate Basis				5.5
Revolving Credit Facility [Member] | Napster
Related Party Transaction [Line Items]
Line of Credit Facility, Maximum Borrowing Capacity							$ 15,000,000
Line of Credit Facility, Interest Rate at Period End				2.25%
Notes payable				$ 4,500,000
Prime Rate [Member] | Revolving Credit Facility [Member]
Related Party Transaction [Line Items]
Debt Instrument, Basis Spread on Variable Rate				0.50%
EURIBOR [Member] | Revolving Credit Facility [Member] | Napster
Related Party Transaction [Line Items]
Debt Instrument, Basis Spread on Variable Rate				2.25%
Minimum | EURIBOR [Member] | Revolving Credit Facility [Member] | Napster
Related Party Transaction [Line Items]
Debt Instrument, Basis Spread on Variable Rate				0.00%

Notes Payable and Long-term deb

Notes Payable and Long-term debt (Details) - USD ($)	1 Months Ended	3 Months Ended	6 Months Ended
	Apr. 30, 2020	Jun. 30, 2020	Jun. 30, 2020	Dec. 31, 2019	Aug. 31, 2019
Debt Instrument [Line Items]
Line of Credit Facility, Maximum Borrowing Capacity					$ 10,000,000
Line of Credit Facility [Line Items]
Line of Credit Facility, Maximum Borrowing Capacity					$ 10,000,000
Unrestricted Cash And Cash Equivalents Minimum Amount Required		$ 3,500,000	$ 3,500,000
Long-term Debt		8,495,000	8,495,000	$ 3,900,000
Debt Issuance Costs, Line of Credit Arrangements, Gross		600,000	600,000
Other Long-term Debt, Noncurrent		3,900,000	3,900,000
Other Current Assets [Member]
Line of Credit Facility [Line Items]
Unamortized Debt Issuance Expense		$ 300,000	$ 300,000
Notes Payable to Banks [Member]
Related Party Transactions [Abstract]
Proceeds from issuance of debt	$ 2,900,000
Debt Instrument [Line Items]
Proceeds from issuance of debt	$ 2,900,000
Debt instrument, term		2 years
Debt instrument rate		1.00%	1.00%
Revolving Credit Facility [Member]
Line of Credit Facility [Line Items]
Debt Instrument, Description of Variable Rate Basis			5.5
Revolving Credit Facility [Member] | Prime Rate [Member]
Line of Credit Facility [Line Items]
Debt Instrument, Basis Spread on Variable Rate			0.50%

Restructuring Charges (Details)

Restructuring Charges (Details) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019
Restructuring Cost and Reserve [Line Items]
Costs incurred and charged to expense	$ 1,090	$ 896
Restructuring Reserve [Roll Forward]
Accrued liability beginning balance	496
Costs incurred and charged to expense	1,012
Cash payments	(1,045)
Accrued liability ending balance	463
Employee Separation Costs
Restructuring Cost and Reserve [Line Items]
Costs incurred and charged to expense	1,012	344
Restructuring Reserve [Roll Forward]
Accrued liability beginning balance	322
Costs incurred and charged to expense	1,012
Cash payments	(871)
Accrued liability ending balance	463
Asset Related and Other Costs
Restructuring Cost and Reserve [Line Items]
Costs incurred and charged to expense	78	$ 552
Restructuring Reserve [Roll Forward]
Accrued liability beginning balance	174
Costs incurred and charged to expense	0
Cash payments	(174)
Accrued liability ending balance	$ 0

Earnings (Loss) Per Share (Calc

Earnings (Loss) Per Share (Calculation of Basic and Diluted Earnings Per Share) (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended				6 Months Ended
	Jun. 30, 2020	Mar. 31, 2020	Jun. 30, 2019	Mar. 31, 2019	Jun. 30, 2020	Jun. 30, 2019
Earnings Per Share [Abstract]
Net income (loss) attributable to RealNetworks			$ (9,202)		$ (9,754)	$ (7,669)
Income (Loss) from Continuing Operations before Income Taxes, Noncontrolling Interest	$ (5,341)		(9,211)		(9,891)	(7,739)
Net income (loss) attributable to RealNetworks					(10,243)	(8,241)
Net income (loss) including noncontrolling interests	(5,554)	$ (4,689)	(9,455)	$ 1,214	(10,243)	(8,241)
Comprehensive Income (Loss), Net of Tax, Attributable to Parent	$ (4,592)		$ (9,694)		$ (10,141)	$ (8,248)
Weighted average common shares outstanding used to compute basic EPS	38,243		37,948		38,236	37,885
Dilutive effect of stock based awards	0		0		0	0
Weighted average common shares outstanding used to compute diluted EPS	38,243		37,948		38,236	37,885
Earnings Per Share, Basic	$ (0.13)		$ (0.24)		$ (0.26)	$ (0.20)
Earnings Per Share, Diluted	$ (0.13)		$ (0.24)		$ (0.26)	$ (0.20)

Earnings (Loss) Per Share (Addi

Earnings (Loss) Per Share (Additional Information) (Detail) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019	Feb. 29, 2020	Dec. 31, 2019
Earnings Per Share [Abstract]
Shares of common stock excluded from the calculation of diluted net income per share because of antidilutive effect	7,100,000	7,700,000	7,400,000	7,300,000
Additional funding in exchange for preferred stock					$ 10	$ 0.8
Share of preferred stock in exchange for additional funding					8,064,516
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Shares of common stock excluded from the calculation of diluted net income per share because of antidilutive effect	7,100,000	7,700,000	7,400,000	7,300,000

Commitments and Contingencies C

Commitments and Contingencies Commitments and Contingencies (Details) $ in Millions	Apr. 06, 2020USD ($)
Korean Music Copyright Association (KOMCA)
Loss Contingencies [Line Items]
Damages sought	$ 2.6

Segment Information (Additional

Segment Information (Additional Information) (Detail)	3 Months Ended
	Jun. 30, 2020Segment
Segment Reporting [Abstract]
Number of reporting segments	4

Segment Information (Segment Re

Segment Information (Segment Results) (Detail) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019
Segment Reporting Information [Line Items]
Revenue	$ 40,424	$ 44,248	$ 83,569	$ 83,720
Cost of revenue	23,033	27,282	47,209	52,152
Gross profit	17,391	16,966	36,360	31,568
Operating expenses	22,290	26,357	46,347	51,863
Operating income (loss)	(4,899)	(9,391)	(9,987)	(20,295)
Costs incurred and charged to expense			1,012
Consumer Media
Segment Reporting Information [Line Items]
Revenue	3,159	2,620	6,654	5,106
Mobile Services
Segment Reporting Information [Line Items]
Revenue	6,461	6,997	13,151	13,936
Games
Segment Reporting Information [Line Items]
Revenue	7,465	6,048	14,102	11,758
Napster
Segment Reporting Information [Line Items]
Revenue	23,339	28,583	49,662	52,920
Operating Segments | Consumer Media
Segment Reporting Information [Line Items]
Revenue	3,159	2,620	6,654	5,106
Cost of revenue	519	803	1,130	1,636
Gross profit	2,640	1,817	5,524	3,470
Operating expenses	2,204	2,877	4,662	5,996
Operating income (loss)	436	(1,060)	862	(2,526)
Operating Segments | Mobile Services
Segment Reporting Information [Line Items]
Revenue	6,461	6,997	13,151	13,936
Cost of revenue	1,782	1,865	3,478	3,913
Gross profit	4,679	5,132	9,673	10,023
Operating expenses	5,682	7,438	13,270	14,999
Operating income (loss)	(1,003)	(2,306)	(3,597)	(4,976)
Operating Segments | Games
Segment Reporting Information [Line Items]
Revenue	7,465	6,048	14,102	11,758
Cost of revenue	1,958	1,655	3,752	3,325
Gross profit	5,507	4,393	10,350	8,433
Operating expenses	4,976	5,288	9,899	10,325
Operating income (loss)	531	(895)	451	(1,892)
Operating Segments | Napster
Segment Reporting Information [Line Items]
Revenue	23,339	28,583	49,662	52,920
Cost of revenue	18,770	23,026	38,842	43,422
Gross profit	4,569	5,557	10,820	9,498
Operating expenses	6,609	6,638	13,070	12,170
Operating income (loss)	(2,040)	(1,081)	(2,250)	(2,672)
Corporate
Segment Reporting Information [Line Items]
Cost of revenue	4	(67)	7	(144)
Operating expenses	2,819	4,116	5,446	8,373
Operating income (loss)	$ (2,823)	$ (4,049)	$ (5,453)	$ (8,229)

Segment Information (Revenue by

Segment Information (Revenue by Geographic Region) (Detail) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenue	$ 40,424	$ 44,248	$ 83,569	$ 83,720
United States
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenue	20,785	21,322	43,205	40,292
Europe
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenue	14,524	17,097	29,362	32,481
Rest of the World
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenue	$ 5,115	$ 5,829	$ 11,002	$ 10,947

Segment Information (Long-Lived

Segment Information (Long-Lived Assets by Geographic Region) (Detail) - USD ($) $ in Thousands	Jun. 30, 2020	Dec. 31, 2019
Revenues from External Customers and Long-Lived Assets [Line Items]
Long-lived assets	$ 91,806	$ 96,127
United States
Revenues from External Customers and Long-Lived Assets [Line Items]
Long-lived assets	79,767	83,342
Europe
Revenues from External Customers and Long-Lived Assets [Line Items]
Long-lived assets	10,224	10,504
Rest of the World
Revenues from External Customers and Long-Lived Assets [Line Items]
Long-lived assets	$ 1,815	$ 2,281

Related Party Transactions Rela

Related Party Transactions Related Party Transactions (Details) - USD ($) $ in Thousands	1 Months Ended	3 Months Ended	6 Months Ended
	Feb. 28, 2015	Mar. 31, 2010	Jun. 30, 2020	Feb. 29, 2020	Dec. 31, 2019	Jan. 18, 2019	Dec. 01, 2016
Related Party Transaction [Line Items]
Payments for restructuring			$ 1,045
Additional funding in exchange for preferred stock				$ 10,000	$ 800
Share of preferred stock in exchange for additional funding				8,064,516
Maximum Ownership Mr Glaser Can Have			38.50%
Ownership Percentage			82.00%
Rhapsody America LLC | Other Debt Obligations [Member]
Related Party Transaction [Line Items]
Loans and Leases Receivable, Related Parties			$ 3,900
Rhapsody America LLC | Debt [Member]
Related Party Transaction [Line Items]
Loans and Leases Receivable, Related Parties			5,400
Rhapsody America LLC
Related Party Transaction [Line Items]
Percentage of shares acquired						42.00%
Interest acquired, percent						84.00%
Rhapsody America LLC
Related Party Transaction [Line Items]
Payments for restructuring		$ 18,000
Liquidation preference amount			10,000
Loan principal to related party			1,100				$ 5,000
Notes Payable, Related Parties, Aggregate Amount			$ 10,000				$ 10,000
Note payable, Related Parties, Interest Rate							15.00%
Other Debt Obligations [Member] | Warrants issued by Rhapsody
Related Party Transaction [Line Items]
Total expected term for warrant	10 years

Subsequent Event (Details)

Subsequent Event (Details) - USD ($) $ in Millions	Apr. 06, 2020	Aug. 03, 2020	Jul. 17, 2020
Korean Music Copyright Association (KOMCA)
Subsequent Event [Line Items]
Damages sought	$ 2.6
Subsequent Event
Subsequent Event [Line Items]
Convertible Notes Payable		$ 0.7	$ 0.6