Content Accounting

3 Months Ended

Mar. 31, 2012

Content Accounting [Abstract]

Content Accounting

13.          Content Accounting

The Company obtains content through content license agreements and revenue sharing agreements with studios and distributors. The license agreement may or may not be recognized in licensed content.

When the license fee is not known or reasonably determinable for a specific title, the title does not meet the criteria for recognition in licensed content in accordance with ASC 920-350-25-2.  We expense as costs of revenues the greater of revenue sharing costs incurred through the end of the reporting period or the proportionate value of total minimum license fees expensed on a straight-line basis over the term of each license agreement. As the Company expenses license fees on a straight-line basis, it may result in deferred or prepaid license fees. Deferred license fees are classified on the consolidated balance sheets as "Deferred license fees". Commitments for license agreements that do not meet the criteria for recognition in licensed content are included in Note 17 to the consolidated financial statements.