Residuals

Definition and Scope

Residuals are payments made to actors, directors, writers and other union-covered personnel each time a film or television program is rerun, released on home video, streamed online or sold in foreign markets. They supplement initial compensation and reflect ongoing value generation.

Union Guidelines and Schedules

Agencies such as SAG-AFTRA, WGA and DGA establish residual formulas based on platform, contract type and production budget. Payment schedules vary—streaming residuals may be calculated quarterly, while broadcast residuals follow network reruns.

Economic and Creative Implications

Residuals help sustain creative communities by providing long-term earnings, incentivizing participation in lower-budget projects. However, shifts toward non-union or profit-share models can reduce residual pools, prompting negotiations for fairer streaming rates.

Contemporary Challenges

The rise of global streaming has complicated residual calculations, as lump-sum licensing deals replace per-play fees. Unions continue to advocate for transparency and updated formulas to ensure that talent receives equitable compensation in a changing marketplace.