PROGRAMMING RIGHTS |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2026 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
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| PROGRAMMING RIGHTS | 6. PROGRAMMING RIGHTS Program rights expected to be amortized to expense in the following 12-month period are classified as current assets and program rights payable within the following 12-month period are classified as current liabilities. Long-term program rights assets are classified as noncurrent acquired programming rights. The Company did not have any long-term program rights liabilities as of June 30, 2026 and December 31, 2025. All program rights payables are included in other current liabilities as of June 30, 2026 and December 31, 2025. Amortization expense included in operating expenses was $0.2 million and $0.4 million for the three and six months ended June 30, 2026, respectively and amortization expense for the three and six months ended June 30, 2025, was $0.2 million and $0.6 million, respectively. The Company evaluates programming rights for impairment whenever indicators of loss are present. No impairment was recorded during the periods presented. The Company estimates amortization expense as follows:
Sublicense Agreement On July 3, 2025, the Company entered into a three-year sublicense agreement with a programming syndicate to obtain non-exclusive Spanish-language broadcast and distribution rights to certain live sporting events. The sublicense covers the 2025-26, 2026-27, and 2027-28 seasons within the United States and Canada. Under the agreement, the syndicate provides the live clean feeds of these sporting events and related highlights, and the Company is permitted to air and monetize such programming across its linear and digital platforms. The Company is obligated to pay fixed license fees totaling $7.2 million over the term of the contract, payable in monthly installments during each season. Additional consideration is due for playoff events and for per-event production services. The Company also agreed to provide the syndicate $1.0 million per season of promotional airtime, measured at fair value, in lieu of cash consideration. The sublicense expires following completion of the 2027-28 season and is non-renewable except by mutual agreement. There were no promotional airtime expenses, license fees expensed were $0.2 million and $0.9 million, respectively, and production costs expensed were immaterial and $0.2 million, respectively, for the three and six months ended June 30, 2026.
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