Residual
Ongoing payments to performers when their work is reused or redistributed.
Definition
Residuals are payments made to performers, writers, directors, and other union members when their work is rebroadcast, streamed, released in new formats, or otherwise exploited beyond initial use. These payments, negotiated through union contracts, provide ongoing income as content continues generating value.
Residual structures vary by medium and union agreement. Traditional broadcast residuals differ from streaming residuals, which have been central to recent industry labor negotiations as streaming becomes the dominant distribution model.
Why It Matters
Residuals represent significant lifetime earnings for entertainment professionals, making residual structures crucial in employment decisions. Understanding residuals helps both talent and content producers budget and negotiate appropriately.
Recent industry strikes centered substantially on streaming residual rates, highlighting how distribution evolution affects entertainment economics.
Examples in Practice
An actor's guest role on a successful streaming series generated residuals over several years as the show was repeatedly promoted and new viewers discovered it.
A production budget included residual reserves anticipating the content's long streaming library life, accounting for ongoing talent payments beyond initial production.
Union negotiations secured improved streaming residual rates, addressing the economic gap between traditional broadcast residuals and inadequate streaming payments.