Television Broadcast Rights
|3 Months Ended|
Apr. 30, 2022
|Television Broadcast Rights|
|Television Broadcast Rights||
(5) Television Broadcast Rights
Television broadcast rights in the accompanying condensed consolidated balance sheets consisted of the following:
During fiscal 2021, the Company entered into certain affiliation agreements with television service providers for carriage of its television programming over their systems, including channel placement rights, which ensure the Company keeps its channel position on the service provider’s channel line-up during the term. The Company recorded additional television broadcast rights of $0 and $102,545 during the first three months of fiscal year 2022 and full year 2021, which represent the present value of payments for the television broadcast rights associated with the channel position placement. Television broadcast rights are amortized on a straight-line basis over the lives of the individual agreements. The remaining weighted average lives of the television broadcast rights was 4.2 years as of April 30, 2022. Amortization expense related to the television broadcast rights was $7,922 for the three-month period ended April 30, 2022 and $5,200 for the three-month period ended May 1, 2021 and is included in depreciation and amortization within the condensed consolidated statements of operations. Estimated future broadcast rights amortization expense is $19,600 for fiscal 2022, $20,493 for fiscal 2023, $20,493 for fiscal 2024, $20,493 for fiscal 2025, $13,342 for fiscal 2026 and $0 thereafter. The liability relating to the television broadcast rights was $108,983 as of April 30, 2022, of which $31,868 was classified as current in the accompanying condensed consolidated balance sheets. During the first three months of fiscal 2022, the Company made scheduled payments on the liability of $5,524. Interest expense related to the television broadcast rights obligation was $1,319 during the three-month period ended April 30, 2022 and $503 during the three-month period ended May 1, 2021.
In addition to the Company securing broadcast rights for channel position, the Company’s affiliation agreements generally provide that it will pay each operator a monthly service fee, most often based on the number of homes receiving the Company’s programming, and in some cases marketing support payments. Monthly service fees are expensed as distribution and selling expense within the condensed consolidated statement of operations.
Disclosure for affiliation agreements with cable and satellite television providers for carriage of the company's service, as well as for certain channel placement.
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