Residuals
Ongoing payments to performers and creatives when their work is reused, rerun, or distributed in new formats.
Definition
Residuals are ongoing payments to writers, directors, actors, and other creatives when their work is exhibited beyond the initial release—reruns, syndication, home video, streaming, and international distribution. Residual formulas are established through union contracts with studios.
Residual rates depend on medium, timing, and deal structure. A TV actor receives residuals each time their episode airs; a film actor receives residuals from video/streaming distribution. Residuals provide ongoing income from successful work long after initial production.
Why It Matters
Residuals are fundamental to creative professional economics—particularly for working actors and writers without blockbuster credits. The streaming era has complicated residual structures, with recent strikes focused on ensuring residuals remain viable as distribution shifts.
Understanding residuals helps creatives evaluate opportunities and plan financial futures.
Examples in Practice
An actor on a syndicated sitcom receives meaningful residual checks for decades as episodes continue airing.
A writer's residuals from a streaming hit are disappointingly small due to new media formula limitations, motivating industry activism.
A character actor's career is sustained by residuals from decades of guest appearances, supplementing current work income.