Television Broadcast Rights
|3 Months Ended|
May 01, 2021
|Television Broadcast Rights [Abstract]|
|Television Broadcast Rights||
(5) Television Broadcast Rights
Television broadcast rights in the accompanying condensed consolidated balance sheets consisted of the following:
During fiscal year 2020, 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 the television broadcast rights of $0 and $22.0 million during the first quarters of fiscal year 2021 and 2020, which represents 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 1.2 years as of May 1, 2021. Amortization expense related to the television broadcast rights was $5.2 million and $47,000 for the three-month periods ended May 1, 2021 and May 2, 2020 and is included in depreciation and amortization within the condensed consolidated statements of operations. Estimated broadcast rights amortization expense is $19.7 million for fiscal 2021 and $7.0 million for fiscal 2022. The liability relating to the television broadcast rights was $30.8 million as of May 1, 2021, of which $26.1 million was classified as current in the accompanying condensed consolidated balance sheets. The long-term portion of the broadcast rights obligations is included in other liabilities within the accompanying condensed consolidated balance sheets. Interest expense related to the television broadcast rights obligation was $503,000 and $6,000 during the three-month periods ended May 1, 2021 and May 2, 2020.
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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