RLJ Entertainment (RLJE) 10-Q 16 May 16 2016 Q1 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	3 Months Ended
	Mar. 31, 2016	May. 13, 2016
Document And Entity Information [Abstract]
Entity Registrant Name	RLJ ENTERTAINMENT, INC.
Entity Trading Symbol	RLJE
Entity Central Index Key	1,546,381
Current Fiscal Year End Date	--12-31
Entity Filer Category	Smaller Reporting Company
Entity Common Stock, Shares Outstanding		14,132,820
Document Fiscal Year Focus	2,016
Document Fiscal Period Focus	Q1
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Mar. 31, 2016

CONSOLIDATED BALANCE SHEETS (un

CONSOLIDATED BALANCE SHEETS (unaudited) - USD ($) $ in Thousands	Mar. 31, 2016	Dec. 31, 2015
ASSETS
Cash	$ 4,965	$ 4,530
Accounts receivable, net	12,639	24,997
Inventories, net	9,267	10,742
Investments in content, net	59,712	60,407
Prepaid expenses and other assets	1,496	1,969
Property, equipment and improvements, net	2,298	2,485
Equity investment in affiliate	20,100	20,098
Other intangible assets, net	10,685	10,769
Goodwill	14,631	14,631
Total assets	135,793	150,628
LIABILITIES AND SHAREHOLDERS' DEFICIT
Accounts payable and accrued liabilities	16,424	23,233
Accrued royalties and distribution fees	49,456	51,552
Deferred revenue	1,636	1,900
Debt, net of discounts and debt issuance costs	61,117	61,250
Deferred tax liability	1,839	1,839
Stock warrant and other derivative liabilities	18,854	10,678
Total liabilities	149,326	150,452
Redeemable convertible preferred stock, $0.001 par value, 1,000,000 shares authorized; 31,046 shares issued and outstanding at March 31, 2016 and December 31, 2015; liquidation preference of $33,272 at March 31, 2016 and $32,617 at December 31, 2015	22,472	21,346
Shareholders' Deficit:
Common stock, $0.001 par value, 250,000,000 shares authorized, 14,151,519 shares issued and 14,132,820 shares outstanding at March 31, 2016; and 14,151,519 shares issued and outstanding at December 31, 2015	14	14
Additional paid-in capital	84,590	85,391
Accumulated deficit	(118,989)	(105,514)
Accumulated other comprehensive loss	(1,620)	(1,061)
Treasury shares, at cost, 18,699 shares at March 31, 2016 and zero at December 31, 2015	0	0
Total shareholders' deficit	(36,005)	(21,170)
Total liabilities and shareholders' deficit	$ 135,793	$ 150,628

CONSOLIDATED BALANCE SHEETS (u3

CONSOLIDATED BALANCE SHEETS (unaudited) (Parenthetical) - USD ($) $ in Thousands	Mar. 31, 2016	Dec. 31, 2015
Shareholders' Deficit:
Common stock, par value (in dollars per share)	$ 0.001	$ 0.001
Common stock, shares authorized (in shares)	250,000,000	250,000,000
Common stock, shares issued (in shares)	14,151,519	14,151,519
Common stock, shares outstanding (in shares)	14,132,820	14,151,519
Treasury shares (in shares)	18,699	0
Mandatorily Redeemable Convertible Preferred Stock [Member]
LIABILITIES AND SHAREHOLDERS' DEFICIT
Preferred stock, par value (in dollars per share)	$ 0.001	$ 0.001
Preferred stock, shares authorized (in shares)	1,000,000	1,000,000
Preferred stock, shares issued (in shares)	31,046	31,046
Preferred stock, shares outstanding (in shares)	31,046	31,046
Preferred stock, liquidation preference (in dollars)	$ 33,272	$ 32,617

CONSOLIDATED STATEMENTS OF OPER

CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited) - USD ($)	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Income Statement [Abstract]
Revenues	$ 22,806,000	$ 26,116,000
Cost of sales
Content amortization and royalties	8,451,000	11,887,000
Manufacturing and fulfillment	8,342,000	8,768,000
Total cost of sales	16,793,000	20,655,000
Gross profit	6,013,000	5,461,000
Selling expenses	3,621,000	6,121,000
General and administrative expenses	5,035,000	5,515,000
Depreciation and amortization	936,000	1,165,000
Total operating expenses	9,592,000	12,801,000
LOSS FROM OPERATIONS	(3,579,000)	(7,340,000)
Equity earnings of affiliate	499,000	250,000
Interest expense, net	(2,205,000)	(2,943,000)
Change in fair value of stock warrants and other derivatives	(8,176,000)	497,000
Other income (expense)	27,000	(776,000)
LOSS BEFORE PROVISION FOR INCOME TAXES	(13,434,000)	(10,312,000)
Provision for income taxes	(41,000)	(318,000)
NET LOSS	(13,475,000)	(10,630,000)
Accretion on preferred stock	(1,126,000)	0
NET LOSS ATTRIBUTABLE TO COMMON SHAREHOLDERS	$ (14,601,000)	$ (10,630,000)
Net loss per common share:
Basic and diluted (in dollars per share)	$ (1.14)	$ (0.84)
Weighted average shares outstanding:
Basic and diluted (in shares)	12,841	12,680

CONSOLIDATED STATEMENTS OF COMP

CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS (unaudited) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Statement Of Income And Comprehensive Income [Abstract]
Net loss	$ (13,475)	$ (10,630)
Other comprehensive loss:
Foreign currency translation loss	(559)	(369)
Total comprehensive loss	$ (14,034)	$ (10,999)

CONSOLIDATED STATEMENTS OF CHAN

CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' DEFICIT (Unaudited) - USD ($) $ in Thousands	Total	Common Stock [Member]	Additional Paid-in Capital [Member]	Accumulated Deficit [Member]	Accumulated Other Comprehensive Income (Loss) [Member]	Treasury Stock [Member]
Balance at Dec. 31, 2014	$ 36,457	$ 14	$ 87,706	$ (50,534)	$ (729)
Balance (in shares) at Dec. 31, 2014		13,335,000				390,000
Forfeiture of restricted common stock (in shares)		(2,000)				2,000
Forfeiture of founder shares (in shares)		(437,000)				437,000
Stock-based compensation	194		194
Foreign currency translation	(369)				(369)
Net loss	(10,630)			(10,630)
Balance at Mar. 31, 2015	25,652	$ 14	87,900	(61,164)	(1,098)
Balance (in shares) at Mar. 31, 2015		12,896,000				829,000
Balance at Dec. 31, 2015	$ (21,170)	$ 14	85,391	(105,514)	(1,061)
Balance (in shares) at Dec. 31, 2015	14,151,519	14,152,000
Forfeiture of restricted common stock (in shares)		(19,000)				19,000
Accretion on preferred stock	$ (1,126)		(1,126)
Stock-based compensation	325		325
Foreign currency translation	(559)				(559)
Net loss	(13,475)			(13,475)
Balance at Mar. 31, 2016	$ (36,005)	$ 14	$ 84,590	$ (118,989)	$ (1,620)
Balance (in shares) at Mar. 31, 2016	14,132,820	14,133,000				19,000

CONSOLIDATED STATEMENTS OF CASH

CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
CASH FLOWS FROM OPERATING ACTIVITIES:
Net loss	$ (13,475)	$ (10,630)
Adjustments to reconcile net loss to net cash provided by (used in) operating activities:
Equity earnings of affiliate	(499)	(250)
Content amortization and royalties	8,451	11,887
Depreciation and amortization	936	1,165
Foreign currency exchange (gain) loss	(3)	841
Fair value adjustment of stock warrant and other derivative liabilities	8,176	(497)
Non-cash interest expense	584	500
Stock-based compensation expense	325	194
Changes in assets and liabilities:
Accounts receivable, net	12,275	5,106
Inventories, net	1,450	958
Investments in content, net	(9,916)	(8,796)
Prepaid expenses and other assets	469	(767)
Accounts payable and accrued liabilities	(7,121)	(1,614)
Deferred revenue	(264)	(1,195)
Net cash provided by (used in) operating activities	1,388	(3,098)
CASH FLOWS FROM INVESTING ACTIVITIES:
Capital expenditures	(332)	(69)
Net cash used in investing activities	(332)	(69)
CASH FLOWS FROM FINANCING ACTIVITIES:
Repayment of senior debt	(613)	(613)
Net cash used in financing activities	(613)	(613)
Effect of exchange rate changes on cash	(8)	246
NET INCREASE (DECREASE) IN CASH:	435	(3,534)
Cash at beginning of period	4,530	6,662
Cash at end of period	$ 4,965	$ 3,128

Description of Business and Bas

Description of Business and Basis of Presentation	3 Months Ended
	Mar. 31, 2016
Description Of Business And Basis Of Presentation [Abstract]
Description of Business and Basis of Presentation	NOTE 1. DESCRIPTION OF BUSINESS AND BASIS OF PRESENTATION Description of Business RLJ Entertainment, Inc. (or RLJE U.K. Image Acorn Media Business Combination RLJE U.K. RLJE Australia RLJE Ltd. ACL We acquire content rights in various categories including, British mysteries and dramas, urban programming and full-length independent motion pictures. We acquire this content in two ways: · through long-term exclusive licensing agreements where we secure multiple rights to third-party programs and; · through development, production and ownership of original drama television programming through our wholly-owned subsidiary, RLJE Ltd., and our 64%-owned subsidiary, ACL. We market our products through a multi-channel strategy encompassing (1) the licensing of original drama and mystery content managed and developed through our wholly-owned subsidiary, RLJE Ltd., and our majority-owned subsidiary, ACL, (our Intellectual Property, or IP, Licensing segment Wholesale segment SVOD Direct-to-Consumer segment Our wholesale partners are broadcasters, digital outlets and major retailers in the United States of America (or U.S. Our Direct-to-Consumer segment includes the sale of video content and complementary merchandise directly to consumers through proprietary ecommerce websites and catalogs and the continued roll-out of our proprietary subscription-based SVOD channels, such as Acorn TV and UMC (or Urban Movie Channel RLJE’s management views the operations of the Company based on these three distinctive reporting segments: (1) IP Licensing, (2) Wholesale and (3) Direct-to-Consumer. Operations and net assets that are not associated with any of these stated segments are reported as “Corporate” when disclosing and discussing segment information. The IP Licensing segment includes intellectual property rights that we own or create and then sublicense for exploitation worldwide. Our Wholesale and Direct-to-Consumer segments consist of the acquisition, content enhancement and worldwide exploitation of exclusive content in various formats, including broadcast (which includes cable and satellite), DVD, Blu-ray, digital, video-on-demand (or VOD Basis of Presentation Unaudited Interim Financial Statements The financial information presented in the accompanying unaudited interim consolidated financial statements as of March 31, 2016 and for the three months ended March 31, 2016 and 2015 has been prepared in accordance with accounting principles generally accepted in the United States (or U.S. GAAP SEC In management’s opinion, all adjustments, consisting of normal recurring accruals, considered necessary for a fair presentation have been included. Due to the seasonal nature of our business, with a disproportionate amount of sales occurring in the fourth quarter and other factors, including our content release schedule, interim results are not necessarily indicative of the results that may be expected for the entire fiscal year. The accompanying unaudited financial information should, therefore, be read in conjunction with the consolidated financial statements and the notes thereto in our Annual Report on Form 10-K filed on April 15, 2016 (or 2015 Form 10-K) Summary of Significant Accounting Policies, Fair Value of Financial Instruments The carrying amount of our financial instruments, which principally include cash, accounts receivable, accounts payable and accrued expenses, approximates fair value due to the relative short maturity of such instruments. The carrying amount of our debt under our senior credit agreement approximates fair value as the debt bears market rates of interest. The carrying amount of our subordinated debt, which includes accrued interest, is $1.4 million more than its fair value of $8.1 million as a result of its reduced interest rate from 12.0% to 1.5% for two years beginning January 1, 2015. The fair value of subordinated debt was determined by discounting future interest and principal payments by an estimated market rate of interest of 12.0%. This fair value assessment of our subordinated debt is a level 3 measurement as provided by Accounting Standards Codification (or ASC Fair Value Measurements and Disclosures Reclassifications and Adoption of Accounting Pronouncement Certain amounts reported previously in our consolidated financial statements have been reclassified or adjusted to be comparable with the classifications used for our 2016 consolidated financial statements. We are now reporting technology infrastructure costs associated with delivering our subscription-based SVOD channels within cost of sales as manufacturing and fulfillment. For the three months ended March 31, 2015, we reclassified $0.4 million of these costs from selling expenses to cost of sales in our consolidated statement of operations. On January 1, 2016, we retroactively adopted the guidance of Accounting Standards Update (or ASU Interest – Imputation of Interest Update FASB Principles of Consolidation The operations of ACL are subject to oversight by ACL’s Board of Directors. The investment in ACL is accounted for using the equity method of accounting given the voting control of the Board of Directors by the minority shareholder. We have included our share of ACL’s operating results as a separate line item in our consolidated financial statements. Our consolidated financial statements include the accounts of all majority-owned subsidiary companies, except for ACL. We carry our investment in ACL as a separate asset on our consolidated balance sheet at cost adjusted for our share of the equity in undistributed earnings. Except for dividends and changes in ownership interest, we report changes in equity in undistributed earnings of ACL as “Equity earnings of affiliate” in our consolidated statements of operations. All intercompany transactions and balances have been eliminated. Liquidity For the three months ended March 31, 2016 and 2015, we recognized a net loss of $13.5 million and $10.6 million, respectively, and we generated $1.4 million of cash from operating activities during the three months ending March 31, 2016. At March 31, 2016, our cash balance was $5.0 million. At March 31, 2016, we had $61.1 million of term debt outstanding (see Note 7, Debt We have taken actions to improve our operating results and Adjusted EBITDA in 2016 by exiting certain non-core operations that have been generating losses. During December 2015, we approved and started implementing a plan to close our Acacia catalog operations (see Note 2, Segment Information

SEGMENT INFORMATION

SEGMENT INFORMATION	3 Months Ended
	Mar. 31, 2016
Segment Reporting [Abstract]
SEGMENT INFORMATION	NOTE 2. SEGMENT INFORMATION In accordance with the requirements of the ASC 280 “ Segment Reporting content Management currently evaluates segment performance based primarily on revenues and operating results, including earnings from ACL. Operating costs and expenses attributable to our Corporate segment include only those expenses incurred by us at the parent corporate level, which are not allocated to our reporting segments and include costs associated with RLJE’s corporate functions such as finance and accounting, human resources, legal and information technology departments. Interest expense, change in the fair value of stock warrants and other derivatives, other income (expense) and provision for income taxes are evaluated by management on a consolidated basis and are not allocated to our reportable segments. The following tables summarize the segment contribution for the three months ended March 31, 2016 and 2015: Three Months Ended March 31, 2016 (In thousands) IP Licensing Wholesale Direct-to- Consumer Corporate Total Revenues $ 26 $ 14,180 $ 8,600 $ — $ 22,806 Operating costs and expenses (116 ) (14,062 ) (8,373 ) (2,898 ) (25,449 ) Depreciation and amortization (34 ) (329 ) (451 ) (122 ) (936 ) Share in ACL earnings 499 — — — 499 Segment contribution (loss) $ 375 $ (211 ) $ (224 ) $ (3,020 ) $ (3,080 ) Three Months Ended March 31, 2015 (In thousands) IP Licensing Wholesale Direct-to- Consumer Corporate Total Revenues $ 458 $ 17,987 $ 7,671 $ — $ 26,116 Operating costs and expenses (487 ) (19,502 ) (9,275 ) (3,027 ) (32,291 ) Depreciation and amortization (29 ) (368 ) (670 ) (98 ) (1,165 ) Share in ACL earnings 250 — — — 250 Segment contribution (loss) $ 192 $ (1,883 ) $ (2,274 ) $ (3,125 ) $ (7,090 ) A reconciliation of total segment contribution (loss) to loss before provision for income taxes is as follows: Three Months Ended March 31, (In thousands) 2016 2015 Total segment loss $ (3,080 ) $ (7,090 ) Interest expense, net (2,205 ) (2,943 ) Change in fair value of stock warrants and other derivatives (8,176 ) 497 Other income (expense) 27 (776 ) Loss before provision for income taxes $ (13,434 ) $ (10,312 ) Total assets for each segment primarily include accounts receivable, inventory and investments in content. The Corporate segment primarily includes assets not fully allocated to any other segment including consolidated cash accounts, certain prepaid assets and fixed assets used across all segments. Total assets by segment are as follows: March 31, December 31, (In thousands) 2016 2015 IP Licensing $ 22,694 $ 22,707 Wholesale 98,195 112,066 Direct-to-Consumer 9,239 10,514 Corporate 5,665 5,341 $ 135,793 $ 150,628

EQUITY EARNINGS OF AFFILIATE

EQUITY EARNINGS OF AFFILIATE	3 Months Ended
	Mar. 31, 2016
Equity Method Investments And Joint Ventures [Abstract]
EQUITY EARNINGS OF AFFILIATE	NOTE 3. EQUITY EARNINGS OF AFFILIATE In February 2012, Acorn Media acquired a 64% interest in ACL for total purchase consideration of £13.7 million or approximately $21.9 million excluding direct transaction costs. The acquisition gave Acorn Media a majority ownership of ACL’s extensive works including a variety of short story collections, more than 80 novels, 19 plays and a film library of over 100 made-for-television films. We account for our investment in ACL using the equity method of accounting because (1) Acorn Media is only entitled to appoint one-half of ACL’s board members and (2) in the event the board is deadlocked, the chairman of the board, who is appointed by the directors elected by the minority shareholders, casts a deciding vote. As of the Business Combination, our 64% share of the difference between ACL’s fair value and the amount of underlying equity in ACL’s net assets was approximately $18.7 million. This step-up basis difference is primarily attributable to the fair value of ACL’s copyrights, which expire in 2046. We are amortizing the basis difference through 2046 using the straight-line method. Basis difference amortization is recorded against our share of ACL’s net income in our consolidated statements of operations; however this amortization is not included within ACL’s financial statements. The following summarized financial information is derived from the unaudited financial statements of ACL: Three Months Ended March 31, (In thousands) 2016 2015 Revenues $ 7,337 $ 2,088 Film cost amortization (4,793 ) (517 ) General, administrative and other expenses (1,116 ) (792 ) Income from operations $ 1,428 $ 779 Net income $ 1,143 $ 602 ACL's functional currency is the British Pound Sterling (GBP). Amounts have been translated from GBP to U.S. dollar using the average exchange rate for the periods presented. The above operating results of ACL do not include step-up basis amortization resulting from the Business Combination.

ACCOUNTS RECEIVABLE

ACCOUNTS RECEIVABLE	3 Months Ended
	Mar. 31, 2016
Accounts Receivable Net [Abstract]
ACCOUNTS RECEIVABLE	NOTE 4. ACCOUNTS RECEIVABLE Accounts receivable are primarily derived from: (1) the sale of physical content (DVDs) to retailers and wholesale distributors who ship to mass retail, (2) direct-to-consumer, e-commerce, catalog and download-to-own sales and (3) video content we license to broadcast, cable/satellite providers and digital subscription platforms like Netflix and Amazon. Our accounts receivable typically trends with retail seasonality. March 31, December 31, (In thousands) 2016 2015 Wholesale $ 15,365 $ 30,663 IP Licensing — — Direct-to-Consumer 1,427 1,271 Accounts receivable before allowances and reserves 16,792 31,934 Less: reserve for returns (3,745 ) (6,677 ) Less: allowance for doubtful accounts (408 ) (260 ) Accounts receivable, net $ 12,639 $ 24,997 Wholesale receivables are primarily billed and collected by our U.S. distribution facilitation partner. Each month, our distribution partner preliminarily settles our wholesale receivables assuming a timing lag on collections and an average-return rate. When actual returns differ from the amounts previously assumed, adjustments are made that give rise to payables and receivables between us and our distribution partner. Amounts vary and tend to be seasonal following our sales activity. As of March 31, 2016, our distribution partner owed us $2.5 million for receivables settled at quarter end; and as of December 31, 2015, our distribution partner owed us $0.8 million for receivables settled as of year-end. The wholesale receivables are reported net of amounts we owe to our distribution partner as these amounts are offset against each other when settling receivables in accordance with the contract. As of March 31, 2016 and December 31, 2015, the net wholesale receivables with our distribution partner were $0.6 million and $11.1 million, respectively, which is included in accounts receivable. Our Direct-to-Consumer receivable represents amounts due to us from our merchant bank related to our credit card transactions processed as of period end.

INVENTORIES

INVENTORIES	3 Months Ended
	Mar. 31, 2016
Inventory Disclosure [Abstract]
INVENTORIES	NOTE 5. INVENTORIES Inventories are summarized as follows: March 31, December 31, (In thousands) 2016 2015 Packaged discs $ 7,668 $ 7,778 Packaging materials 602 753 Other merchandise (1) 997 2,211 Inventories, net $ 9,267 $ 10,742 (1) Other merchandise primarily consists of gifts, jewelry and home accents purchased from third-parties. For each reporting period, we review the value of inventories on hand to estimate the recoverability through future sales. Values in excess of anticipated future sales are booked as obsolescence reserve. Our obsolescence reserve was $11.4 million as of March 31, 2016 and $11.4 million as of December 31, 2015. We reduce our inventories with adjustments for lower of cost or market valuation, shrinkage, excess quantities and obsolescence. During the three months ended March 31, 2016 and 2015, we recorded impairment charges of $0.3 million and $0.7 million, respectively. These charges are included in cost of sales as manufacturing and fulfillment cost.

INVESTMENTS IN CONTENT

INVESTMENTS IN CONTENT	3 Months Ended
	Mar. 31, 2016
Entertainment [Abstract]
INVESTMENTS IN CONTENT	NOTE 6. INVESTMENTS IN CONTENT March 31, December 31, (In thousands) 2016 2015 Released $ 56,616 $ 53,378 Completed, not released 2,249 5,936 In-production 847 1,093 Investments in content, net $ 59,712 $ 60,407 Investments in content are stated at the lower of unamortized cost or estimated fair value. The valuation of investments in content is reviewed on a title-by-title basis when an event or change in circumstances indicates that the fair value of content is less than its unamortized cost. For the three months ended March 31, 2016 and 2015, impairment charges were $0.3 million and $0.5 million, respectively. These charges are included in the cost of sales as part of content amortization and royalties. In determining the fair value of content for impairments (Note 10, Fair Value Measurements DCF

Debt

Debt	3 Months Ended
	Mar. 31, 2016
Debt Disclosure [Abstract]
Debt	NOTE 7. DEBT Debt consists of the following: Maturity Interest March 31, December 31, (In thousands) Date Rate 2016 2015 Senior secured term notes September 11, 2019 LIBOR + 10.64% $ 56,325 $ 56,938 Less: Debt discounts and debt issuance costs (3,754 ) (4,234 ) Total senior secured term notes, net of discounts and debt issuance costs 52,571 52,704 Subordinated notes payable to prior Image shareholders October 3, 2018 1.5% through 2016 then 12.0% 8,546 8,546 Debt, net of discounts and debt issuance costs $ 61,117 $ 61,250 Future minimum principal payments of our debt as of March 31, 2016 are as follows: Subordinated (In thousands) Senior Notes Notes Total 2016 $ 2,362 $ — $ 2,362 2017 4,375 — 4,375 2018 49,588 8,546 58,134 $ 56,325 $ 8,546 $ 64,871 The subordinated notes mature in 2018 and the senior notes mature in 2019; however, if we do not subsequently extend the subordinated debt maturity, then the new senior notes’ maturity would accelerate in conjunction with the repayment of the subordinated notes in 2018. The above table reflects the assumption that no extension of the subordinated notes occurs. The senior notes’ minimum principal payments in 2018 would be $5.3 million if the senior notes’ maturity is not accelerated. Senior Term Notes On September 11, 2014, we entered into a $70.0 million Credit and Guaranty Agreement (the Credit Agreement Redeemable Convertible Preferred Stock and Equity Under the Credit Agreement, interest and principal is payable quarterly with principal payments beginning on December 31, 2014. Beginning in 2016, we are obligated to make certain accelerated principal payments annually which are contingent upon: (1) the occurrence of consolidated excess cash flows, as defined in the Credit Agreement and (2) only to the extent at which such excess cash flows are above our minimum cash threshold of $12.0 million. We are permitted to make additional voluntary principal payments under the Credit Agreement, but prepayments are subject to an applicable prepayment premium of: (a) 5% if prepaid during the first year, (b) 3% if prepaid during the second year and (c) 1.5% if prepaid during the third year. The first $5.0 million of voluntary prepayment is not subject to any prepayment premium. The Credit Agreement contains certain financial and non-financial covenants beginning on December 31, 2014. Financial covenants are assessed quarterly and are based on Adjusted EBITDA, as defined in the Credit Agreement. Financial covenants vary each quarter and generally become more restrictive over time. Financial covenants include the following: December 31, 2015 2016 Thereafter Leverage Ratios: Senior debt-to-Adjusted EBITDA 4.03 : 1.00 Ranges from 3.83 : 1:00 to 2:67 : 1.00 2.67 : 1.00 Total debt-to-Adjusted EBITDA 5.06 : 1.00 Ranges from 4.82 : 1:00 to 3.44 : 1.00 3.44 : 1.00 Fixed charge coverage ratio 1.20 : 1.00 Ranges from 1.24 : 1.00 to 1.59 : 1.00 1.59 : 1.00 We are also obligated to maintain a minimum valuation ratio computed on the outstanding principal balance of our senior debt compared to the sum of our valuations of our content library and our investment in ACL. To the extent the valuation ratio exceeds the allowed threshold; we are obligated to make an additional principal payment such that the threshold would not be exceeded after giving effect to this payment. The valuation threshold is 83% as long as the unpaid principal balance exceeds $65.0 million and 75% thereafter. The Credit Agreement contains events of default that include, among others, non-payment of principal, interest or fees, violation of covenants, inaccuracy of representations and warranties, bankruptcy and insolvency events, material judgments, cross defaults to certain other contracts (including, for example, business arrangements with our U.S. distribution facilitation partner and other material contracts) and indebtedness and events constituting a change of control or a material adverse effect in any of our results of operations or conditions (financial or otherwise). The occurrence of an event of default would increase the applicable rate of interest and could result in the acceleration of our obligations under the Credit Agreement. The Credit Agreement imposes restrictions on such items as encumbrances and liens, payments of dividends, other indebtedness, stock repurchases, capital expenditures and entering into new lease obligations. Additional covenants restrict our ability to make certain investments, such as loans and equity investments, or investments in content that are not in the ordinary course of business. Pursuant to the Credit Agreement, we must maintain at all times a cash balance of $1.0 million. As of March 31, 2016, we were in compliance with all covenants as stipulated in the Credit Agreement. Subordinated Notes Payable In October 2012, we issued unsecured subordinated promissory notes in the aggregate principal amount of $14.8 million to the selling preferred stockholders of Image (or Subordinated Note Holders During the second quarter of 2014, interest was due of $1.8 million of which $1.0 million was added to the principal balance of these notes and the remainder was paid to the Subordinated Note Holders. On April 15, 2015, we entered into an agreement to amend the subordinated promissory notes (the Note Amendment (a) an agreement by the Subordinated Note Holders to convert 50% of the outstanding principal and accrued interest balance under the subordinated notes into shares of preferred stock and warrants; (b) amendments to the subordinated notes (i) changing the interest rate payable from 12% to 1.5% per annum for the 24‑month period commencing on January 1, 2015, and then 12% per annum thereafter; and (ii) specifying that 45% of the interest due will be payable in cash and the remainder of the accrued interest will be payable in the form of additional subordinated notes; and (c) a waiver of any existing defaults and events of default. We are providing interest expense on our subordinated notes payable using the effective interest rate method at an annual interest rate of approximately 5%. In connection with the sale of preferred stock and warrants, the Subordinated Note Holders exchanged approximately $8.5 million of subordinated notes for 8,546 shares of preferred stock and 2,563,873 warrants (see Note 9, Stock Warrants

REDEEMABLE CONVERTIBLE PREFERRE

REDEEMABLE CONVERTIBLE PREFERRED STOCK AND EQUITY	3 Months Ended
	Mar. 31, 2016
Equity [Abstract]
REDEEMABLE CONVERTIBLE PREFERRED STOCK AND EQUITY	NOTE 8. REDEEMABLE CONVERTIBLE PREFERRED STOCK AND EQUITY Redeemable Convertible Preferred Stock On May 20, 2015, we closed a transaction in which we sold 31,046 shares of preferred stock and warrants to acquire 9,313,873 shares of common stock for $22.5 million in cash and the exchange of $8.5 million in subordinated notes. Of the preferred shares and warrants sold, 16,500 shares of preferred stock and warrants to acquire 4,950,000 shares of common stock were sold to certain board members or their affiliated companies. We used $10.0 million of the cash proceeds from this sale to make partial payment on our Credit Agreement and approximately $1.9 million for prepayment penalties, legal and accounting fees, which include fees associated with our registration statement filed in July 2015 and other expenses associated with the transaction. The balance of the net cash proceeds was used for content investment and working capital purposes. Of the fees incurred, $0.9 million was recorded against the proceeds received, $0.5 million was recorded as additional debt discounts, $0.2 million was included as interest expense and the balance was included in other expense. The preferred stock has the following rights and preferences: · Rank – the preferred stock ranks higher than other company issued equity securities in terms of distributions, dividends and other payments upon liquidation. · Dividends – the preferred stock is entitled to cumulative dividends at a rate of 8% per annum of a preferred share’s stated value ($1,000 per share plus any unpaid dividends). The first dividend payment is due July 1, 2017 and then payments are to be made quarterly thereafter. At our discretion, dividend payments are payable in either cash or common stock, or added to the preferred share’s stated value. · Conversion – at the preferred stockholder’s discretion, each share of preferred stock is convertible into 1,000 shares of our common stock, subject to adjustment for any unpaid dividends. The conversion rate is subject to anti-dilution protection including adjustments for offerings consummated at a per-share price of less than $1.00 per common share. · Mandatory Redemption – unless previously converted, on May 20, 2020, at our option we will either redeem the preferred stock with (a) cash equal to $1,000 per share plus any unpaid dividends (Redemption Value), or (b) shares of common stock determined by dividing the Redemption Value by a conversion rate equal to the lower of (i) the conversion rate then in effect (which is currently $1.00) or (ii) 85% of the then trading price, as defined, of our common stock. If we were to redeem with shares of common stock, the number of shares that would be issued upon redemption is not determinable as the number is contingent upon the then trading price of our common stock. Generally, if we were to redeem with shares, the number of common shares needed for redemption increases as our common stock price decreases. · Voting – except for certain matters that require the approval of the preferred stockholders, such as changes to the rights and preferences of the preferred stock, the preferred stock does not have voting rights. However, the holders of the preferred stock are entitled to appoint two board members and, under certain circumstances, appoint a third member. We are increasing (or accreting) the carrying balance of our preferred stock up to its redemption value using the effective interest-rate method. During the three months ended March 31, 2016, we accreted $1.1 million of dividends and we have cumulative preferred dividends of $2.2 million (or $71.69 per share of preferred stock). During the three months ended March 31, 2015, no dividends were accreted. The warrants issued with the preferred stock have a term of five years and an exercise price of $1.50 per share. The exercise price is subject to standard anti-dilution protection including adjustments for offerings consummated at a per-share price of less than $1.50 per common share. Additionally, if we were to consummate certain fundamental transactions, such as a business combination or other change-in-control transactions, the warrant holders may require, under certain conditions, that we repurchase the warrants with cash equal to the warrants’ then fair value as determined using the Black Scholes valuation model. On July 9, 2015, we filed a registration statement with the Securities and Exchange Commission to register the shares issuable upon conversion of the preferred stock and exercise of the warrants. The registration statement was declared effective in July 2015. We will use our best efforts to keep the registration statement effective. If we are in default of the registration rights agreement, and as long as the event of default is not cured, then we are required to pay, in cash, partial liquidation damages, which in total are not to exceed 6% of the aggregated subscription amount of $31.0 million. We are accreting the carrying value of our preferred stock up to its redemption value over a period of time beginning from the issuance on May 20, 2015 to the required redemption date of May 20, 2020. Restricted Stock-Based Compensation Grants Compensation expense relating to our restricted stock awards for the three months ended March 31, 2016 and 2015 was $0.3 million and $0.2 million, respectively. Compensation expense related to restricted stock awards is included in general and administrative expenses. During the three months ended March 31, 2016, no shares of restricted stock were granted and all forfeitures were based upon the failure to achieve the 2015 performance criteria. During the three months ended March 31, 2015, no shares of restricted stock were granted and 2,245 shares were forfeited based upon an employee termination. A summary of the activity since December 31, 2015 is as follows: (In thousands, except per share data) Service Shares Performance Shares Restricted Stock-Based Compensation Award Activity Shares Weighted-Average Grant Date Fair Value Shares Weighted-Average Grant Date Fair Value Non-vested shares at December 31, 2015 1,308 $ 0.83 17 $ 5.45 Granted — $ — — $ — Vested (19 ) $ 5.45 — $ — Forfeited — $ — (17 ) $ 5.45 Non-vested shares at March 31, 2016 1,289 $ 0.76 — $ — As of March 31, 2016, there is $0.5 million of unamortized compensation that is expected to be expensed ratably over the remaining vesting period through October 2016.

STOCK WARRANTS

STOCK WARRANTS	3 Months Ended
	Mar. 31, 2016
Stock Warrants [Abstract]
STOCK WARRANTS	NOTE 9. STOCK WARRANTS RLJE had the following warrants outstanding: March 31, 2016 (In thousands, except per share data) Shares Exercise Price Remaining Life 2012 Warrants: Registered warrants 15,375 $ 12.00 1.50 years Sponsor warrants 3,817 $ 12.00 1.50 years Unregistered warrants 1,850 $ 12.00 1.50 years 2015 Warrants: Unregistered warrants 9,314 $ 1.50 4.13 years 30,356 We issued warrants with a term of five years beginning October 3, 2012 that provide the warrant holder the right to acquire a share of our common stock for $12.00 per share (the 2012 Warrants The 2012 Warrants contain a provision whereby the exercise price will be reduced if RLJE reorganized as a private company. The reduction in exercise price depends upon the amount of other consideration, if any, received by the warrant holders in the reorganization and how many years after the Business Combination reorganization is consummated. Generally, the reduction in exercise price would be between $6.00 and $9.00 assuming no additional consideration was received. On May 20, 2015, we issued warrants to acquire 9.3 million shares of our common stock (the 2015 Warrants Redeemable Convertible Preferred Stock and Equity

Fair Value Measurements

Fair Value Measurements	3 Months Ended
	Mar. 31, 2016
Fair Value Disclosures [Abstract]
Fair Value Measurements	NOTE 10. FAIR VALUE MEASUREMENTS Stock Warrant and Other Derivative Liabilities We have warrants outstanding to purchase 30,355,540 shares of our common stock, which are recorded at fair value on the consolidated balance sheets. We issued the 2012 Warrants to purchase 21,041,667 shares of our common stock in 2012 and we issued the 2015 Warrants to purchase 9,313,873 shares of our common stock in 2015. Of the 2012 Warrants, 15,375,000 are registered under the Securities Act and are available for trading on the over-the-counter market. Since the first quarter of 2014, there has been a lack of trading activity for the registered warrants, and as such, when assessing their fair value we transferred them from Level 1 to Level 3 within the fair-value hierarchy. We determine the fair value of the registered warrants using a Monte Carlo simulation model. Inputs to the model are stock volatility, contractual warrant terms (which are remaining life of the warrant, the redemption feature, the exercise price, and assumptions for the reduction in exercise price if we were to reorganize as a private company), the risk-free interest rate, and a discount for the lack of marketability (DLOM) pertaining to the underlying common stock as the shares acquirable are not registered. We use the closing market price of our common stock to compute stock volatility. The DLOM is determined using the Finnerty Average-Strike Put Option Marketability Discount Model (Finnerty Model), which takes into consideration the discount period, stock dividend rates, and stock volatility. We used a DLOM rate of 23.0% as of March 31, 2016 and 19.0% as of December 31, 2015. Assumptions regarding adjustments to the exercise price are based on management’s best estimates of the likelihood of reorganizing as a private company and the amount of the resulting exercise-price adjustment. The remaining 2012 Warrants, consisting of Sponsor warrants of 3,816,667 and unregistered warrants of 1,850,000, are classified as Level 3 within the fair-value hierarchy. Because RLJE has agreed not to exercise its redemption right pertaining to certain warrants held by RLJ SPAC Acquisition LLC (or the Sponsor The unregistered 2012 Warrants differ from the registered warrants in that they have not been registered under the Securities Act and are not available for trading. We determine the fair value of these warrants by taking the fair value of a registered warrant and discounting it using the Finnerty Model for the lack of marketability as these warrants are not registered. We used a DLOM rate of 22.0% as of March 31, 2016 and 25.0% as of December 31, 2015. The 2012 Warrants increased in fair value from $36,000 as of December 31, 2015 to $72,000 as of March 31, 2016. We are using the lattice model to value the 2015 Warrants, which are classified as Level 3 within the fair-value hierarchy. Inputs to the model are stock volatility, contractual warrant terms (which are remaining life of the warrant and the exercise price), the risk-free interest rate and management’s assessment of the likelihood of doing a down-round transaction. We use the closing market price of our common stock to compute stock volatility. The 2015 Warrants increased in fair value from $2.2 million as of December 31, 2015 to $4.0 million as of March 31, 2016. We are using the lattice model to value the preferred stock’s embedded conversion feature, which is classified as Level 3 within the fair-value hierarchy. Inputs to the model are stock volatility, contractual terms (which are remaining life of the conversion option and the conversion rate), the risk-free interest rate and management’s assessment of the likelihood of doing a down-round transaction. We use the closing market price of our common stock to compute stock volatility. The fair value of the embedded conversion feature increased from $8.4 million as of December 31, 2015 to $14.7 million as of March 31, 2016. The following tables represent the valuation of our warrant and other derivative liabilities within the fair-value hierarchy: March 31, 2016 (In thousands) Level 1 Level 2 Level 3 Total Stock warrants $ — $ — $ 4,108 $ 4,108 Embedded conversion feature $ — $ — $ 14,746 $ 14,746 December 31, 2015 (In thousands) Level 1 Level 2 Level 3 Total Stock warrants $ — $ — $ 2,252 $ 2,252 Embedded conversion feature $ — $ — $ 8,426 $ 8,426 The following tables include a roll-forward of our warrant and other derivative liabilities classified within Level 3 of the fair-value hierarchy: Three Months Ended March 31, 2016 (In thousands) Level 1 Level 2 Level 3 Total Stock warrants at December 31, 2015 $ — $ — $ 2,252 $ 2,252 Change in fair value — — 1,856 1,856 Stock warrants at March 31, 2016 $ — $ — $ 4,108 $ 4,108 Three Months Ended March 31, 2016 (In thousands) Level 1 Level 2 Level 3 Total Embedded conversion feature at December 31, 2015 $ — $ — $ 8,426 $ 8,426 Change in fair value — — 6,320 6,320 Embedded conversion feature at March 31, 2016 $ — $ — $ 14,746 $ 14,746 Three Months Ended March 31, 2015 (In thousands) Level 1 Level 2 Level 3 Total Stock warrant and other derivative liabilities at December 31, 2014 $ — $ — $ 601 $ 601 Change in fair value — — (497 ) (497 ) Stock warrant and other derivative liabilities at March 31, 2015 $ — $ — $ 104 $ 104 Investments in Content When events and circumstances indicate that investments in content are impaired, we determine the fair value of the investment; and if the fair value is less than the carrying amount, we recognize additional amortization expense equal to the excess. Our non-recurring fair value measurement information of assets and liabilities is classified in the tables below: Three Months Ended March 31, 2016 (In thousands) Level 1 Level 2 Level 3 Total Loss Investments in content $ — $ — $ 391 $ 391 $ 310 Three Months Ended March 31, 2015 (In thousands) Level 1 Level 2 Level 3 Total Loss Investments in content $ — $ — $ 642 $ 642 $ 533 During the three months ended March 31, 2016 and 2015, the investments in content were impaired by $0.3 million and $0.5 million, respectively. In determining the fair value of our investments in content, we employ a DCF methodology. Key inputs employed in the DCF methodology include estimates of a film's ultimate revenue and costs as well as a discount rate. The discount rate utilized in the DCF analysis is based on our weighted average cost of capital plus a risk premium representing the risk associated with producing a particular film or television program. As the primary determination of fair value is determined using a DCF model, the resulting fair value is considered a Level 3 measurement.

Net Loss per Common Share Data

Net Loss per Common Share Data	3 Months Ended
	Mar. 31, 2016
Earnings Per Share [Abstract]
Net Loss per Common Share Data	NOTE 11. NET LOSS PER COMMON SHARE DATA We have outstanding warrants to acquire 30,355,540 shares of common stock that are not included in the computation of diluted net loss per common share as the effect would be anti-dilutive because their exercise prices, which range from $1.50 to $12.00 per share exceed the fair value of our common stock. For the three months ended March 31, 2016, we have 1,298,000 shares of compensatory restricted common stock that are not included in the computation of basic and diluted net loss per common share as the effect would be anti-dilutive. For the three months ended March 31, 2015, we have weighted average outstanding shares of approximately 216,000 shares of compensatory restricted common stock that are not included in the computation of basic or diluted net loss per common share as the effect would be anti-dilutive. For the three months ended March 31, 2015, we have weighted average outstanding shares of approximately 146,000 which were held by founding shareholders that were forfeitable and not included in the computation of basic or diluted net loss per common share as the effect would be anti-dilutive.

Statements of Cash Flows

Statements of Cash Flows	3 Months Ended
	Mar. 31, 2016
Supplemental Cash Flow Elements [Abstract]
Statements of Cash Flows	NOTE 12. STATEMENTS OF CASH FLOWS Supplemental Disclosures Three Months Ended March 31, (In thousands) 2016 2015 Cash paid during the period for: Interest $ 1,621 $ 1,945 Income taxes $ 62 $ 12 Reclassification of deferred financing costs from prepaid expenses and other assets to debt, net of discounts $ 832 $ — Non-cash investing and financing activities: Accretion on preferred stock $ 1,126 $ — Capital expenditures accrued for in accounts payable and accrued liabilities $ 419 $ 75

COMMITMENTS AND CONTINGENCIES

COMMITMENTS AND CONTINGENCIES	3 Months Ended
	Mar. 31, 2016
Commitments And Contingencies Disclosure [Abstract]
COMMITMENTS AND CONTINGENCIES	NOTE 13. COMMITMENTS AND CONTINGENCIES In the normal course of business, we are subject to proceedings, lawsuits and other claims, including proceedings under government laws and regulations relating to content ownership, copyright and employment matters. While it is not possible to predict the outcome of these matters, it is the opinion of management, based on consultations with internal and external legal counsel, that the ultimate disposition of known proceedings will not have a material adverse impact on our financial position, results of operations or liquidity. Accordingly, we record a charge to earnings based on the probability of settlement and determination of an estimated amount. These charges were not material to our results.

RELATED PARTY TRANSACTIONS

RELATED PARTY TRANSACTIONS	3 Months Ended
	Mar. 31, 2016
Related Party Transactions [Abstract]
RELATED PARTY TRANSACTIONS	NOTE 14. RELATED PARTY TRANSACTIONS Equity Investment in Affiliate We charged ACL overhead and personnel costs for the three months ended March 31, 2016 and 2015, of approximately $31,000 and $0.4 million, respectively. Amounts were recorded as a reduction in general and administrative expenses in the accompanying consolidated statements of operations. During 2015, ACL began incurring most of their personnel and related support costs directly opposed to these costs being incurred by us and then charged to ACL. We have advanced ACL $2.6 million for distribution rights for Partners in Crime During 2015, we paid $120,000 of the $300,000 advance due to ACL for distribution rights for And Then There Were None Foreign Currency We recognize foreign currency gains and losses, as a component of other expense, on amounts lent by Acorn Media to RLJE Ltd. and RLJE Australia. As of March 31, 2016, Acorn Media had lent its U.K. subsidiaries approximately $8.7 million and its Australian subsidiary approximately $3.5 million. Amounts lent will be repaid in U.S. dollars based on available cash. Movement in exchange rates between the U.S. dollar and the functional currencies (which are the British Pound Sterling and the Australian dollar) of those subsidiaries that were lent the monies will result in foreign currency gains and losses. During the three months ended March 31, 2016, we recognized foreign currency gains of $27,000 and during the three months ended March 31, 2015 we recognized foreign currency losses of $0.8 million. The RLJ Companies, LLC In June 2013, The RLJ Companies, LLC (whose sole manager and voting member is the chairman of our board of directors) purchased from one of our vendors $3.5 million of contract obligations that we owed to the vendor. These purchased liabilities, which are now owed to The RLJ Companies, LLC, are included in accrued royalties and distribution fees in the accompanying consolidated balance sheets. Sale of Preferred Stock and Warrants On May 20, 2015, certain former board members and their affiliate companies, including RLJ SPAC Acquisition, LLC, purchased 16,500 shares of preferred stock and warrants to acquire 4,950,000 share of common stock from us for $16.5 million.

SEGMENT INFORMATION (Tables)

SEGMENT INFORMATION (Tables)	3 Months Ended
	Mar. 31, 2016
Segment Reporting [Abstract]
Summary of Segment Performance	The following tables summarize the segment contribution for the three months ended March 31, 2016 and 2015: Three Months Ended March 31, 2016 (In thousands) IP Licensing Wholesale Direct-to- Consumer Corporate Total Revenues $ 26 $ 14,180 $ 8,600 $ — $ 22,806 Operating costs and expenses (116 ) (14,062 ) (8,373 ) (2,898 ) (25,449 ) Depreciation and amortization (34 ) (329 ) (451 ) (122 ) (936 ) Share in ACL earnings 499 — — — 499 Segment contribution (loss) $ 375 $ (211 ) $ (224 ) $ (3,020 ) $ (3,080 ) Three Months Ended March 31, 2015 (In thousands) IP Licensing Wholesale Direct-to- Consumer Corporate Total Revenues $ 458 $ 17,987 $ 7,671 $ — $ 26,116 Operating costs and expenses (487 ) (19,502 ) (9,275 ) (3,027 ) (32,291 ) Depreciation and amortization (29 ) (368 ) (670 ) (98 ) (1,165 ) Share in ACL earnings 250 — — — 250 Segment contribution (loss) $ 192 $ (1,883 ) $ (2,274 ) $ (3,125 ) $ (7,090 )
Reconciliation of Total Segment Contribution to Income (Loss) Before Provision for Income Taxes	A reconciliation of total segment contribution (loss) to loss before provision for income taxes is as follows: Three Months Ended March 31, (In thousands) 2016 2015 Total segment loss $ (3,080 ) $ (7,090 ) Interest expense, net (2,205 ) (2,943 ) Change in fair value of stock warrants and other derivatives (8,176 ) 497 Other income (expense) 27 (776 ) Loss before provision for income taxes $ (13,434 ) $ (10,312 )
Total Assets by Segment	Total assets by segment are as follows: March 31, December 31, (In thousands) 2016 2015 IP Licensing $ 22,694 $ 22,707 Wholesale 98,195 112,066 Direct-to-Consumer 9,239 10,514 Corporate 5,665 5,341 $ 135,793 $ 150,628

EQUITY EARNINGS OF AFFILIATE (T

EQUITY EARNINGS OF AFFILIATE (Tables)	3 Months Ended
	Mar. 31, 2016
Equity Method Investments And Joint Ventures [Abstract]
Summarized Financial Information of ACL	The following summarized financial information is derived from the unaudited financial statements of ACL: Three Months Ended March 31, (In thousands) 2016 2015 Revenues $ 7,337 $ 2,088 Film cost amortization (4,793 ) (517 ) General, administrative and other expenses (1,116 ) (792 ) Income from operations $ 1,428 $ 779 Net income $ 1,143 $ 602

ACCOUNTS RECEIVABLE (Tables)

ACCOUNTS RECEIVABLE (Tables)	3 Months Ended
	Mar. 31, 2016
Accounts Receivable Net [Abstract]
Accounts Receivable	Our accounts receivable typically trends with retail seasonality. March 31, December 31, (In thousands) 2016 2015 Wholesale $ 15,365 $ 30,663 IP Licensing — — Direct-to-Consumer 1,427 1,271 Accounts receivable before allowances and reserves 16,792 31,934 Less: reserve for returns (3,745 ) (6,677 ) Less: allowance for doubtful accounts (408 ) (260 ) Accounts receivable, net $ 12,639 $ 24,997

INVENTORIES (Tables)

INVENTORIES (Tables)	3 Months Ended
	Mar. 31, 2016
Inventory Disclosure [Abstract]
Schedule of Inventory	Inventories are summarized as follows: March 31, December 31, (In thousands) 2016 2015 Packaged discs $ 7,668 $ 7,778 Packaging materials 602 753 Other merchandise (1) 997 2,211 Inventories, net $ 9,267 $ 10,742 (1) Other merchandise primarily consists of gifts, jewelry and home accents purchased from third-parties.

INVESTMENTS IN CONTENT (Tables)

INVESTMENTS IN CONTENT (Tables)	3 Months Ended
	Mar. 31, 2016
Entertainment [Abstract]
Investment in Content	March 31, December 31, (In thousands) 2016 2015 Released $ 56,616 $ 53,378 Completed, not released 2,249 5,936 In-production 847 1,093 Investments in content, net $ 59,712 $ 60,407

Debt (Tables)

Debt (Tables)	3 Months Ended
	Mar. 31, 2016
Debt Disclosure [Abstract]
Debt Outstanding	Debt consists of the following: Maturity Interest March 31, December 31, (In thousands) Date Rate 2016 2015 Senior secured term notes September 11, 2019 LIBOR + 10.64% $ 56,325 $ 56,938 Less: Debt discounts and debt issuance costs (3,754 ) (4,234 ) Total senior secured term notes, net of discounts and debt issuance costs 52,571 52,704 Subordinated notes payable to prior Image shareholders October 3, 2018 1.5% through 2016 then 12.0% 8,546 8,546 Debt, net of discounts and debt issuance costs $ 61,117 $ 61,250
Future Minimum Principal Payments	Future minimum principal payments of our debt as of March 31, 2016 are as follows: Subordinated (In thousands) Senior Notes Notes Total 2016 $ 2,362 $ — $ 2,362 2017 4,375 — 4,375 2018 49,588 8,546 58,134 $ 56,325 $ 8,546 $ 64,871
Schedule of Future Leverage Ratio Requirements	Financial covenants include the following: December 31, 2015 2016 Thereafter Leverage Ratios: Senior debt-to-Adjusted EBITDA 4.03 : 1.00 Ranges from 3.83 : 1:00 to 2:67 : 1.00 2.67 : 1.00 Total debt-to-Adjusted EBITDA 5.06 : 1.00 Ranges from 4.82 : 1:00 to 3.44 : 1.00 3.44 : 1.00 Fixed charge coverage ratio 1.20 : 1.00 Ranges from 1.24 : 1.00 to 1.59 : 1.00 1.59 : 1.00

REDEEMABLE CONVERTIBLE PREFER28

REDEEMABLE CONVERTIBLE PREFERRED STOCK AND EQUITY (Tables)	3 Months Ended
	Mar. 31, 2016
Equity [Abstract]
Restricted Stock Award Activity	A summary of the activity since December 31, 2015 is as follows: (In thousands, except per share data) Service Shares Performance Shares Restricted Stock-Based Compensation Award Activity Shares Weighted-Average Grant Date Fair Value Shares Weighted-Average Grant Date Fair Value Non-vested shares at December 31, 2015 1,308 $ 0.83 17 $ 5.45 Granted — $ — — $ — Vested (19 ) $ 5.45 — $ — Forfeited — $ — (17 ) $ 5.45 Non-vested shares at March 31, 2016 1,289 $ 0.76 — $ —

STOCK WARRANTS (Tables)

STOCK WARRANTS (Tables)	3 Months Ended
	Mar. 31, 2016
Stock Warrants [Abstract]
Summary of Stock Warrants Outstanding	RLJE had the following warrants outstanding: March 31, 2016 (In thousands, except per share data) Shares Exercise Price Remaining Life 2012 Warrants: Registered warrants 15,375 $ 12.00 1.50 years Sponsor warrants 3,817 $ 12.00 1.50 years Unregistered warrants 1,850 $ 12.00 1.50 years 2015 Warrants: Unregistered warrants 9,314 $ 1.50 4.13 years 30,356

Fair Value Measurements (Tables

Fair Value Measurements (Tables)	3 Months Ended
	Mar. 31, 2016
Fair Value Disclosures [Abstract]
Fair Value, Liabilities Measured on Recurring Basis	The following tables represent the valuation of our warrant and other derivative liabilities within the fair-value hierarchy: March 31, 2016 (In thousands) Level 1 Level 2 Level 3 Total Stock warrants $ — $ — $ 4,108 $ 4,108 Embedded conversion feature $ — $ — $ 14,746 $ 14,746 December 31, 2015 (In thousands) Level 1 Level 2 Level 3 Total Stock warrants $ — $ — $ 2,252 $ 2,252 Embedded conversion feature $ — $ — $ 8,426 $ 8,426
Roll-forward of Liabilities	The following tables include a roll-forward of our warrant and other derivative liabilities classified within Level 3 of the fair-value hierarchy: Three Months Ended March 31, 2016 (In thousands) Level 1 Level 2 Level 3 Total Stock warrants at December 31, 2015 $ — $ — $ 2,252 $ 2,252 Change in fair value — — 1,856 1,856 Stock warrants at March 31, 2016 $ — $ — $ 4,108 $ 4,108 Three Months Ended March 31, 2016 (In thousands) Level 1 Level 2 Level 3 Total Embedded conversion feature at December 31, 2015 $ — $ — $ 8,426 $ 8,426 Change in fair value — — 6,320 6,320 Embedded conversion feature at March 31, 2016 $ — $ — $ 14,746 $ 14,746 Three Months Ended March 31, 2015 (In thousands) Level 1 Level 2 Level 3 Total Stock warrant and other derivative liabilities at December 31, 2014 $ — $ — $ 601 $ 601 Change in fair value — — (497 ) (497 ) Stock warrant and other derivative liabilities at March 31, 2015 $ — $ — $ 104 $ 104
Fair Value, Assets Measured on Non-recurring Basis	Our non-recurring fair value measurement information of assets and liabilities is classified in the tables below: Three Months Ended March 31, 2016 (In thousands) Level 1 Level 2 Level 3 Total Loss Investments in content $ — $ — $ 391 $ 391 $ 310 Three Months Ended March 31, 2015 (In thousands) Level 1 Level 2 Level 3 Total Loss Investments in content $ — $ — $ 642 $ 642 $ 533

Statements of Cash Flows (Table

Statements of Cash Flows (Tables)	3 Months Ended
	Mar. 31, 2016
Supplemental Cash Flow Elements [Abstract]
Supplemental Cash Flow Information	Supplemental Disclosures Three Months Ended March 31, (In thousands) 2016 2015 Cash paid during the period for: Interest $ 1,621 $ 1,945 Income taxes $ 62 $ 12 Reclassification of deferred financing costs from prepaid expenses and other assets to debt, net of discounts $ 832 $ — Non-cash investing and financing activities: Accretion on preferred stock $ 1,126 $ — Capital expenditures accrued for in accounts payable and accrued liabilities $ 419 $ 75

Description of Business and B32

Description of Business and Basis of Presentation - Additional Information (Details) $ in Thousands	3 Months Ended
	Mar. 31, 2016USD ($)Segment	Mar. 31, 2015USD ($)	Dec. 31, 2015	Feb. 29, 2012
Business Acquisition [Line Items]
Number of reportable segments | Segment	3
Carrying value of subordinated debt in excess of fair value	$ 1,400
Estimated market rate of interest	12.00%
Reclassified selling expense amount		$ 400
Unamortized debt issuance costs	$ 800
Liquidity [Abstract]
Net loss	(13,475)	(10,630)
Net cash provided by (used in) operating activities	1,388	$ (3,098)
Cash balance	5,000
Term debt outstanding	$ 61,117
December 31, 2015 [Member]
Liquidity [Abstract]
Senior debt-to-adjusted EBITDA	3.83
December 31, 2016 [Member]
Liquidity [Abstract]
Senior debt-to-adjusted EBITDA	2.67
Unsecured Subordinated Note [Member]
Business Acquisition [Line Items]
Fair value of debt	$ 8,100
Reduction in interest rate	1.50%		12.00%
Agatha Christie Limited Company [Member]
Business Acquisition [Line Items]
Ownership interest in ACL				64.00%
Acorn Media Group Inc [Member] | Agatha Christie Limited Company [Member]
Business Acquisition [Line Items]
Ownership interest in ACL	64.00%			64.00%

Segment Information - Additiona

Segment Information - Additional Information (Details)	3 Months Ended
	Mar. 31, 2016Segment
Segment Reporting [Abstract]
Number of reportable segments	3

Segment Information - Summary o

Segment Information - Summary of Segment Performance (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Segment Reporting Information [Line Items]
Revenues	$ 22,806	$ 26,116
Operating costs and expenses	(25,449)	(32,291)
Depreciation and amortization	(936)	(1,165)
Share of income	499	250
Segment contribution (loss)	(3,080)	(7,090)
Reportable Segments [Member] | IP Licensing [Member]
Segment Reporting Information [Line Items]
Revenues	26	458
Operating costs and expenses	(116)	(487)
Depreciation and amortization	(34)	(29)
Share of income	499	250
Segment contribution (loss)	375	192
Reportable Segments [Member] | Wholesale [Member]
Segment Reporting Information [Line Items]
Revenues	14,180	17,987
Operating costs and expenses	(14,062)	(19,502)
Depreciation and amortization	(329)	(368)
Segment contribution (loss)	(211)	(1,883)
Reportable Segments [Member] | Direct to Consumer [Member]
Segment Reporting Information [Line Items]
Revenues	8,600	7,671
Operating costs and expenses	(8,373)	(9,275)
Depreciation and amortization	(451)	(670)
Segment contribution (loss)	(224)	(2,274)
Corporate [Member]
Segment Reporting Information [Line Items]
Operating costs and expenses	(2,898)	(3,027)
Depreciation and amortization	(122)	(98)
Segment contribution (loss)	$ (3,020)	$ (3,125)

Segment Information - Reconcili

Segment Information - Reconciliation of Total Segment Contribution (loss) to Loss Before Provision for Income Taxes (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Reconciliation of total segment contribution to income (loss) before provision for income taxes [Abstract]
Total segment loss	$ (3,080)	$ (7,090)
Interest expense, net	(2,205)	(2,943)
Change in fair value of stock warrants and other derivatives	(8,176)	497
Other income (expense)	27	(776)
LOSS BEFORE PROVISION FOR INCOME TAXES	$ (13,434)	$ (10,312)

Segment Information - Total Ass

Segment Information - Total Assets by Segment (Details) - USD ($) $ in Thousands	Mar. 31, 2016	Dec. 31, 2015
Total assets by segment [Abstract]
Assets	$ 135,793	$ 150,628
Reportable Segments [Member] | IP Licensing [Member]
Total assets by segment [Abstract]
Assets	22,694	22,707
Reportable Segments [Member] | Wholesale [Member]
Total assets by segment [Abstract]
Assets	98,195	112,066
Reportable Segments [Member] | Direct to Consumer [Member]
Total assets by segment [Abstract]
Assets	9,239	10,514
Corporate [Member]
Total assets by segment [Abstract]
Assets	$ 5,665	$ 5,341

Equity Earnings of Affiliate -

Equity Earnings of Affiliate - Additional Information (Details) £ in Millions, $ in Millions	1 Months Ended
	Feb. 29, 2012USD ($)	Feb. 29, 2012GBP (£)	Mar. 31, 2016NovelPlayFilm	Feb. 28, 2012USD ($)
Business Acquisition [Line Items]
Number of novels and short story collections | Novel			80
Number of plays | Play			19
Number of television films | Film			100
Agatha Christie Limited Company [Member]
Business Acquisition [Line Items]
Purchase consideration	$ 21.9	£ 13.7
Ownership interest in ACL	64.00%	64.00%
Agatha Christie Limited Company [Member] | Agatha Christie Limited [Member] | Bank Term Loan [Member]
Business Acquisition [Line Items]
Source of cash for financing of acquisition | $				$ 18.7

Equity Earnings of Affiliate 38

Equity Earnings of Affiliate - Summarized Financial Information of ACL (Details) - Agatha Christie Limited [Member] - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Business Acquisition [Line Items]
Revenues	$ 7,337	$ 2,088
Film cost amortization	(4,793)	(517)
General, administrative and other expenses	(1,116)	(792)
Income from operations	1,428	779
Net income	$ 1,143	$ 602

Accounts Receivable - Summary o

Accounts Receivable - Summary of Accounts Receivable (Details) - USD ($) $ in Thousands	Mar. 31, 2016	Dec. 31, 2015
Accounts, Notes, Loans and Financing Receivable [Line Items]
Accounts receivable before allowances and reserves	$ 16,792	$ 31,934
Less: reserve for returns	(3,745)	(6,677)
Less: allowance for doubtful accounts	(408)	(260)
Accounts receivable, net	12,639	24,997
Wholesale [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Accounts receivable before allowances and reserves	15,365	30,663
Direct to Consumer [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Accounts receivable before allowances and reserves	$ 1,427	$ 1,271

Accounts Receivable - Additiona

Accounts Receivable - Additional Information (Details) - USD ($) $ in Millions	Mar. 31, 2016	Dec. 31, 2015
Accounts Receivable Net [Abstract]
Distribution partners	$ 2.5	$ 0.8
Advances receivables from distributor	$ 0.6	$ 11.1

Inventories - Summary of Invent

Inventories - Summary of Inventories (Details) - USD ($) $ in Thousands		Mar. 31, 2016	Dec. 31, 2015
Inventory Disclosure [Abstract]
Packaged discs		$ 7,668	$ 7,778
Packaging materials		602	753
Other merchandise	[1]	997	2,211
Inventories, net		$ 9,267	$ 10,742
[1]	Other merchandise primarily consists of gifts, jewelry and home accents purchased from third-parties.

Inventories - Additional Inform

Inventories - Additional Information (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015	Dec. 31, 2015
Inventory Disclosure [Abstract]
Obsolescence reserve	$ 11.4		$ 11.4
Impairment charges	$ 0.3	$ 0.7

Investments in Content - Summar

Investments in Content - Summary of Investments in Content (Details) - USD ($) $ in Thousands	Mar. 31, 2016	Dec. 31, 2015
Theatrical Film Costs [Abstract]
Released	$ 56,616	$ 53,378
Completed, not released	2,249	5,936
In-production	847	1,093
Investments in content, net	$ 59,712	$ 60,407

Investments in Content - Additi

Investments in Content - Additional Information (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Produced And Acquired Content [Abstract]
Impairment charges	$ 0.3	$ 0.5

Debt - Debt Outstanding (Detail

Debt - Debt Outstanding (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2016	Dec. 31, 2015	Oct. 31, 2012
Debt Instrument [Line Items]
Senior secured term notes	$ 64,871
Debt, net of discounts and debt issuance costs	$ 61,117	$ 61,250
Senior Notes [Member]
Debt Instrument [Line Items]
Maturity Date	Sep. 11, 2019
Senior secured term notes	$ 56,325	56,938
Less: Debt discounts and debt issuance costs	(3,754)	(4,234)
Total senior secured term notes, net of discounts and debt issuance costs	$ 52,571	52,704
Senior Notes [Member] | LIBOR [Member]
Debt Instrument [Line Items]
Basis spread on variable rate	10.64%
Subordinated Notes Payable to Prior Image Shareholders [Member]
Debt Instrument [Line Items]
Maturity Date	Oct. 3, 2018
Interest rate	5.00%		1.50%
Senior secured term notes	$ 8,546		$ 14,800
Subordinated loans	$ 8,546	$ 8,546
Subordinated Notes Payable to Prior Image Shareholders [Member] | January 1, 2015 to March 31, 2016 [Member]
Debt Instrument [Line Items]
Interest rate	1.50%
Subordinated Notes Payable to Prior Image Shareholders [Member] | October 3, 2018 [Member]
Debt Instrument [Line Items]
Interest rate	12.00%

Debt - Future Minimum Principal

Debt - Future Minimum Principal Payments (Details) - USD ($) $ in Thousands	Mar. 31, 2016	Dec. 31, 2015	Oct. 31, 2012
Future Minimum Principal Payments [Abstract]
2,016	$ 2,362
2,017	4,375
2,018	58,134
Long-term Debt, Gross	64,871
Senior Notes [Member]
Future Minimum Principal Payments [Abstract]
2,016	2,362
2,017	4,375
2,018	49,588
Long-term Debt, Gross	56,325	$ 56,938
Subordinated Notes Payable to Prior Image Shareholders [Member]
Future Minimum Principal Payments [Abstract]
2,016	0
2,017	0
2,018	8,546
Long-term Debt, Gross	$ 8,546		$ 14,800

Debt - Additional Information (

Debt - Additional Information (Details) - USD ($)	3 Months Ended
	Mar. 31, 2016	Jun. 30, 2014	Dec. 31, 2015	Oct. 31, 2012
Debt Instrument [Line Items]
Senior secured term notes	$ 64,871,000
Interest expense	$ 200,000
Sale of preferred stock and warrants (in shares)	31,046
Credit Agreement [Member]
Debt Instrument [Line Items]
Term of credit facility	5 years
Maximum borrowing capacity	$ 70,000,000
Cash balance maintained for credit facility	$ 1,000,000
Interest rate of principal amortization for first year	3.50%
Interest rate of principal amortization for second year	3.50%
Interest rate of principal amortization for third year	5.00%
Interest rate of principal amortization for remaining term	7.50%
Minimum cash threshold	$ 12,000,000
Percentage of principal prepayment premium in first year	5.00%
Percentage of principal prepayment premium in second year	3.00%
Percentage of principal prepayment premium in third year	1.50%
Voluntary prepayment amount	$ 5,000,000
Percentage of valuation threshold	83.00%
Minimum threshold unpaid principal balance	$ 65,000,000
Percentage of valuation threshold thereafter	75.00%
LIBOR [Member] | Credit Agreement [Member]
Debt Instrument [Line Items]
Basis spread on variable rate with floor	0.25%
Senior Notes [Member]
Debt Instrument [Line Items]
Senior note debt service	$ 5,300,000
Senior secured term notes	$ 56,325,000		$ 56,938,000
Senior Notes [Member] | LIBOR [Member]
Debt Instrument [Line Items]
Basis spread on variable rate	10.64%
Subordinated Notes Payable to Prior Image Shareholders [Member]
Debt Instrument [Line Items]
Senior secured term notes	$ 8,546,000			$ 14,800,000
Interest rate	5.00%			1.50%
Debt instrument interest payable in cash percentage	45.00%
Interest expense		$ 1,800,000
Increase in principal balance for accrued interest		$ 1,000,000
Common stock shares acquired value in exchange of subordinated notes	$ 8,500,000
Sale of preferred stock and warrants (in shares)	8,546
Warrants Issued	2,563,873
Subordinated Notes Payable to Prior Image Shareholders [Member] | January 1, 2015 to March 31, 2016 [Member]
Debt Instrument [Line Items]
Interest rate	1.50%
Period of interest rate	24 months
Subordinated Notes Payable to Prior Image Shareholders [Member] | October 3, 2018 [Member]
Debt Instrument [Line Items]
Interest rate	12.00%
Note Amendment [Member]
Debt Instrument [Line Items]
Percentage of interest due payable in cash	45.00%
Note Amendment [Member] | Convertible Preferred Stock [Member]
Debt Instrument [Line Items]
Percentage of outstanding balance to be converted under subordinated note	50.00%

Debt - Schedule of Future Lever

Debt - Schedule of Future Leverage Ratio Requirements (Details)	Mar. 31, 2016
December 31, 2016 [Member]
Debt Instrument [Line Items]
Senior debt-to-Adjusted EBITDA	3.83
Thereafter [Member]
Debt Instrument [Line Items]
Senior debt-to-Adjusted EBITDA	2.67
Credit Agreement [Member] | December 31, 2015 [Member]
Debt Instrument [Line Items]
Senior debt-to-Adjusted EBITDA	4.03
Total debt-to-Adjusted EBITDA	5.06
Fixed charge coverage ratio	1.20
Credit Agreement [Member] | December 31, 2016 [Member] | Maximum [Member]
Debt Instrument [Line Items]
Senior debt-to-Adjusted EBITDA	3.83
Total debt-to-Adjusted EBITDA	4.82
Fixed charge coverage ratio	1.24
Credit Agreement [Member] | December 31, 2016 [Member] | Minimum [Member]
Debt Instrument [Line Items]
Senior debt-to-Adjusted EBITDA	2.67
Total debt-to-Adjusted EBITDA	3.44
Fixed charge coverage ratio	1.59
Credit Agreement [Member] | Thereafter [Member]
Debt Instrument [Line Items]
Senior debt-to-Adjusted EBITDA	2.67
Total debt-to-Adjusted EBITDA	3.44
Fixed charge coverage ratio	1.59

Redeemable Convertible Prefer49

Redeemable Convertible Preferred Stock and Equity - Additional Information (Details) - USD ($)	Jul. 09, 2015	Mar. 31, 2016	Mar. 31, 2015	May. 20, 2015
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Preferred stock shares issued (in shares)		31,046
Proceeds from issuance of preferred stock and warrants		$ 22,500,000
Exchange of subordinated notes		8,500,000
Prepayment of penalties, legal and accounting fees		1,900,000
Preferred stock issuance fees		900,000
Additional debt discounts		500,000
Interest expense		$ 200,000
Preferred stock dividend percentage		8.00%
Preferred stock dividend stated value (in dollars per share)		$ 1,000
Preferred stock dividend payment due date		Jul. 1, 2017
Preferred stock is convertible into common stock		1,000
Trading price percentage		85.00%
Accreted value of dividends		$ 1,126,000	$ 0
Cumulative preferred dividends		$ 2,200,000
Preferred Stock, Dividends, Per Share, Cash Paid		$ 71.69
Warrants issued with preferred stock exercisable term		5 years
Aggregated subscription amount	$ 31,000,000
Compensation expense		$ 325,000	$ 194,000
Granted (in shares)		0	0
Forfeited (in shares)			2,245
Unamortized compensation		$ 500,000
Maximum [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Preferred stock conversion price (in dollars per share)		$ 1
Exercise price of warrants issued with preferred stock (in dollars per share)		$ 1.50
Payment of partial liquidation damages percentage on aggregated subscription amount	6.00%
Board Members [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Preferred stock shares issued (in shares)		16,500
Shares acquired by issuing of warrants		4,950,000
Proceeds from issuance of preferred stock and warrants		$ 10,000,000
2015 Warrants [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares acquired by issuing of warrants		9,313,873		9,300,000

Redeemable Convertible Prefer50

Redeemable Convertible Preferred Stock and Equity - Restricted Stock Award Activity Under Incentive Plan (Details) - $ / shares	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Restricted Stock-Based Compensation Award Activity [Roll Forward]
Granted (in shares)	0	0
Forfeited (in shares)		(2,245)
Restricted Stock, Service Shares [Member]
Restricted Stock-Based Compensation Award Activity [Roll Forward]
Non-vested shares at the beginning of the period (in shares)	1,308,000
Granted (in shares)	0
Vested (in shares)	(19,000)
Forfeited (in shares)	0
Non-vested shares at the end of the period (in shares)	1,289,000
Restricted Stock-Based Compensation Award Activity Weighted Average Grant Date Fair Value [Abstract]
Non-vested shares at the beginning of the period (in dollars per share)	$ 0.83
Granted (in dollars per share)	0
Vested (in dollars per share)	5.45
Forfeited (in dollars per share)	0
Non-vested shares at the end of the period (in dollars per share)	$ 0.76
Restricted Stock, Performance Shares [Member]
Restricted Stock-Based Compensation Award Activity [Roll Forward]
Non-vested shares at the beginning of the period (in shares)	17,000
Granted (in shares)	0
Vested (in shares)	0
Forfeited (in shares)	(17,000)
Non-vested shares at the end of the period (in shares)	0
Restricted Stock-Based Compensation Award Activity Weighted Average Grant Date Fair Value [Abstract]
Non-vested shares at the beginning of the period (in dollars per share)	$ 5.45
Granted (in dollars per share)	0
Vested (in dollars per share)	0
Forfeited (in dollars per share)	5.45
Non-vested shares at the end of the period (in dollars per share)	$ 0

Stock Warrants - Summary of Sto

Stock Warrants - Summary of Stock Warrants Outstanding (Details) shares in Thousands	3 Months Ended
	Mar. 31, 2016$ / sharesshares
Class Of Warrant Or Right [Line Items]
Warrants outstanding (in shares) | shares	30,356
2012 Warrants [Member]
Class Of Warrant Or Right [Line Items]
Exercise price of warrants issued with preferred stock (in dollars per share) | $ / shares	$ 12
2012 Warrants [Member] | Registered Warrants [Member]
Class Of Warrant Or Right [Line Items]
Warrants outstanding (in shares) | shares	15,375
Exercise price of warrants issued with preferred stock (in dollars per share) | $ / shares	$ 12
Remaining Life	1 year 6 months
2012 Warrants [Member] | Sponsor Warrants [Member]
Class Of Warrant Or Right [Line Items]
Warrants outstanding (in shares) | shares	3,817
Exercise price of warrants issued with preferred stock (in dollars per share) | $ / shares	$ 12
Remaining Life	1 year 6 months
2012 Warrants [Member] | Unregistered Warrants [Member]
Class Of Warrant Or Right [Line Items]
Warrants outstanding (in shares) | shares	1,850
Exercise price of warrants issued with preferred stock (in dollars per share) | $ / shares	$ 12
Remaining Life	1 year 6 months
2015 Warrants [Member] | Unregistered Warrants [Member]
Class Of Warrant Or Right [Line Items]
Warrants outstanding (in shares) | shares	9,314
Exercise price of warrants issued with preferred stock (in dollars per share) | $ / shares	$ 1.50
Remaining Life	4 years 1 month 17 days

Stock Warrants - Additional Inf

Stock Warrants - Additional Information (Details) - $ / shares	3 Months Ended
	Mar. 31, 2016	May. 20, 2015
Maximum [Member]
Class Of Warrant Or Right [Line Items]
Exercise price of warrants issued with preferred stock (in dollars per share)	$ 1.50
Warrant Issued In2012
Class Of Warrant Or Right [Line Items]
Term of warrants	5 years
Exercise price of warrants issued with preferred stock (in dollars per share)	$ 12
Redemption price (in dollars per share)	0.01
Common stock benchmark trading price, Minimum (in dollars per share)	$ 17.50
Trading period to trigger redemption, Minimum	20 days
Benchmark trading period	30 days
Shares acquired by issuing of warrants	21,041,667
Warrant Issued In2012 | Minimum [Member]
Class Of Warrant Or Right [Line Items]
Change in exercise price of warrants (in dollars per share)	$ 6
Warrant Issued In2012 | Maximum [Member]
Class Of Warrant Or Right [Line Items]
Change in exercise price of warrants (in dollars per share)	$ 9
2015 Warrants [Member]
Class Of Warrant Or Right [Line Items]
Shares acquired by issuing of warrants	9,313,873	9,300,000

Fair Value Measurements - Addit

Fair Value Measurements - Additional Information (Details) - USD ($)	3 Months Ended		12 Months Ended
	Mar. 31, 2016	Mar. 31, 2015	Dec. 31, 2015	May. 20, 2015
Class Of Warrant Or Right [Line Items]
Warrants outstanding (in shares)	30,355,540
Impairment charges	$ 300,000	$ 500,000
Warrant Issued In2012
Class Of Warrant Or Right [Line Items]
Shares acquired by issuing of warrants	21,041,667
Increase (decrease) in fair value of warrants	$ 72,000		$ 36,000
Warrant Issued In2012 | Registered Warrants [Member]
Class Of Warrant Or Right [Line Items]
Warrants outstanding (in shares)	15,375,000
The discount rate applied in fair value assumption	23.00%		19.00%
Warrant Issued In2012 | Sponsor Warrants [Member]
Class Of Warrant Or Right [Line Items]
Warrants outstanding (in shares)	3,816,667
Warrant Issued In2012 | Unregistered Warrants [Member]
Class Of Warrant Or Right [Line Items]
Warrants outstanding (in shares)	1,850,000
The discount rate applied in fair value assumption	22.00%		25.00%
2015 Warrants [Member]
Class Of Warrant Or Right [Line Items]
Shares acquired by issuing of warrants	9,313,873			9,300,000
2015 Warrants [Member] | Level 3 [Member]
Class Of Warrant Or Right [Line Items]
Increase (decrease) in fair value of warrants	$ 4,000,000		$ 2,200,000
Preferred Stock [Member] | Level 3 [Member]
Class Of Warrant Or Right [Line Items]
Increase (decrease) in fair value of warrants	$ 14,700,000		$ 8,400,000

Fair Value Measurements - Fair

Fair Value Measurements - Fair Value, Liabilities Measured on Recurring Basis (Details) - Recurring [Member] - USD ($) $ in Thousands	Mar. 31, 2016	Dec. 31, 2015	Mar. 31, 2015	Dec. 31, 2014
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Stock warrant and other derivative liabilities			$ 104	$ 601
Level 1 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Stock warrant and other derivative liabilities			0	0
Level 2 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Stock warrant and other derivative liabilities			0	0
Level 3 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Stock warrant and other derivative liabilities			$ 104	$ 601
Stock Warrants [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Stock warrant and other derivative liabilities	$ 4,108	$ 2,252
Stock Warrants [Member] | Level 1 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Stock warrant and other derivative liabilities	0	0
Stock Warrants [Member] | Level 2 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Stock warrant and other derivative liabilities	0	0
Stock Warrants [Member] | Level 3 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Stock warrant and other derivative liabilities	4,108	2,252
Embedded Conversion Feature [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Stock warrant and other derivative liabilities	14,746	8,426
Embedded Conversion Feature [Member] | Level 1 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Stock warrant and other derivative liabilities	0	0
Embedded Conversion Feature [Member] | Level 2 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Stock warrant and other derivative liabilities	0	0
Embedded Conversion Feature [Member] | Level 3 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Stock warrant and other derivative liabilities	$ 14,746	$ 8,426

Fair Value Measurements - Roll-

Fair Value Measurements - Roll-forward of Warrant and Other Derivative Liabilities (Details) - Recurring [Member] - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Fair value liability [Roll Forward]
Stock warrant and other derivative liabilities, beginning of period		$ 601
Change in fair value		(497)
Stock warrant and other derivative liabilities, end of period		104
Level 1 [Member]
Fair value liability [Roll Forward]
Stock warrant and other derivative liabilities, beginning of period		0
Change in fair value		0
Stock warrant and other derivative liabilities, end of period		0
Level 2 [Member]
Fair value liability [Roll Forward]
Stock warrant and other derivative liabilities, beginning of period		0
Change in fair value		0
Stock warrant and other derivative liabilities, end of period		0
Level 3 [Member]
Fair value liability [Roll Forward]
Stock warrant and other derivative liabilities, beginning of period		601
Change in fair value		(497)
Stock warrant and other derivative liabilities, end of period		$ 104
Stock Warrants [Member]
Fair value liability [Roll Forward]
Stock warrant and other derivative liabilities, beginning of period	$ 2,252
Change in fair value	1,856
Stock warrant and other derivative liabilities, end of period	4,108
Stock Warrants [Member] | Level 1 [Member]
Fair value liability [Roll Forward]
Stock warrant and other derivative liabilities, beginning of period	0
Change in fair value	0
Stock warrant and other derivative liabilities, end of period	0
Stock Warrants [Member] | Level 2 [Member]
Fair value liability [Roll Forward]
Stock warrant and other derivative liabilities, beginning of period	0
Change in fair value	0
Stock warrant and other derivative liabilities, end of period	0
Stock Warrants [Member] | Level 3 [Member]
Fair value liability [Roll Forward]
Stock warrant and other derivative liabilities, beginning of period	2,252
Change in fair value	1,856
Stock warrant and other derivative liabilities, end of period	4,108
Embedded Conversion Feature [Member]
Fair value liability [Roll Forward]
Stock warrant and other derivative liabilities, beginning of period	8,426
Change in fair value	6,320
Stock warrant and other derivative liabilities, end of period	14,746
Embedded Conversion Feature [Member] | Level 1 [Member]
Fair value liability [Roll Forward]
Stock warrant and other derivative liabilities, beginning of period	0
Change in fair value	0
Stock warrant and other derivative liabilities, end of period	0
Embedded Conversion Feature [Member] | Level 2 [Member]
Fair value liability [Roll Forward]
Stock warrant and other derivative liabilities, beginning of period	0
Change in fair value	0
Stock warrant and other derivative liabilities, end of period	0
Embedded Conversion Feature [Member] | Level 3 [Member]
Fair value liability [Roll Forward]
Stock warrant and other derivative liabilities, beginning of period	8,426
Change in fair value	6,320
Stock warrant and other derivative liabilities, end of period	$ 14,746

Fair Value Measurements - Fai56

Fair Value Measurements - Fair Value, Assets Measured on Non-recurring Basis (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Loss	$ 310	$ 533
Nonrecurring [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investments in content	391	642
Nonrecurring [Member] | Level 1 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investments in content	0	0
Nonrecurring [Member] | Level 2 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investments in content	0	0
Nonrecurring [Member] | Level 3 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investments in content	$ 391	$ 642

Net Loss per Common Share Data

Net Loss per Common Share Data - Additional Information (Details) - $ / shares	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Maximum [Member]
Earnings Per Share Basic [Line Items]
Exercise price (in dollars per share)	$ 1.50
Warrants [Member]
Earnings Per Share Basic [Line Items]
Antidilutive securities excluded from computation of earnings per share (in shares)	30,355,540
Warrants [Member] | Minimum [Member]
Earnings Per Share Basic [Line Items]
Exercise price (in dollars per share)	$ 1.50
Warrants [Member] | Maximum [Member]
Earnings Per Share Basic [Line Items]
Exercise price (in dollars per share)	$ 12
Common Class Restricted [Member]
Earnings Per Share Basic [Line Items]
Antidilutive securities excluded from computation of earnings per share (in shares)	1,298,000	216,000
Number of shares of restricted common stock held by founding shareholders (in shares)		146,000

Statements of Cash Flows - Supp

Statements of Cash Flows - Supplemental Cash Flow Information (Details) - USD ($)	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Cash paid during the period for:[Abstract]
Interest	$ 1,621,000	$ 1,945,000
Income taxes	62,000	12,000
Reclassification of deferred financing costs from prepaid expenses and other assets to debt, net of discounts	832,000
Non-cash investing and financing activities:
Accretion on preferred stock	1,126,000	0
Capital expenditures accrued for in accounts payable and accrued liabilities	$ 419,000	$ 75,000

Related Party Transactions - Ad

Related Party Transactions - Additional Information (Details) - USD ($)	May. 20, 2015	Mar. 31, 2016	Mar. 31, 2015	Dec. 31, 2015	Jun. 30, 2013
Related Party Transaction [Line Items]
Foreign currency exchange gain (loss)		$ 3,000	$ (841,000)
Contract obligations remaining amount					$ 3,500,000
Common stock shares acquired (in shares)		14,151,519		14,151,519
Sale of preferred stock and warrants (in shares)		31,046
United Kingdom Subsidiary [Member]
Related Party Transaction [Line Items]
Loans to subsidiaries		$ 8,700,000
Australian Subsidiary [Member]
Related Party Transaction [Line Items]
Loans to subsidiaries		3,500,000
Agatha Christie Limited [Member]
Related Party Transaction [Line Items]
Overhead and personnel costs charged		31,000	400,000
Advance distribution rights for partners in crime		2,600,000
Payment for advance due for distribution rights				$ 120,000
Advance due for distribution rights				300,000
Agatha Christie Limited [Member] | Distribution Rights For Partners In Crime [Member]
Related Party Transaction [Line Items]
Recognized content amortization and royalty expense		100,000	0
Remaining unamortized content advance		1,200,000
Agatha Christie Limited [Member] | Distribution Rights For And Then There Were None [Member]
Related Party Transaction [Line Items]
Recognized content amortization and royalty expense		277,000		$ 0
Remaining unamortized content advance		23,000
Acorn Media [Member]
Related Party Transaction [Line Items]
Foreign currency exchange gain (loss)		$ 27,000	$ (800,000)
RLJ SPAC Acquisition, LLC [Member] | Board Members and Affiliates [Member]
Related Party Transaction [Line Items]
Common stock shares acquired (in shares)	4,950,000
Sale of preferred stock and warrants (in shares)	16,500
Common stock shares acquired, value	$ 16,500,000