residuals informational meeting · 2016. 3. 25. · • triggered by theatrical exhibition of a...

Residuals Informational Meeting

Los Angeles March 24, 2016

What Are Residuals?

Additional Compensation forDistribution and Exhibition beyond that covered

by Original Compensation

Original Compensation

Two Types of Residuals

Fixed /Run Based

Revenue/Gross Receipts

Based

Fixed (Run Based) Residuals – TV Agreements

• Triggered by reruns in network prime time• Due 30 days after each rerun

Network Prime Time Residuals

• Triggered by reruns in syndication (and in basic cable if the program is made-for-basic cable) and network non-prime time

• Due 4 months after each rerun

Network and Syndication Residuals

• Triggered by first exhibition on free television (broadcast or basic cable or streaming) outside of the U.S.A. and Canada

• Due 30 days after initial air date

Foreign Free TV Residuals

Fixed Residuals – TV Agreements

• Triggered by theatrical exhibition of a television or made for new media picture

Theatrical Residuals

• Triggered by free streaming within 1 year of initial exhibition on television and outside of any free streaming window

Free Internet Streaming Residuals

• Triggered by exhibition on the original SVOD platform in excess of 1 year

Made for HBSVOD Residuals

How Does That Math Work?Example:

Day Rate = $938 Weekly Rate = $3255___________________________________________

8pm rerun on CBS of “My New Favorite ½ Hour”Residuals = $938 Residuals = $2527

(TAC) (Prime Time Ceiling)___________________________________________

7pm rerun on a Local Channel after the CBS rerunResiduals = $281.40 Residuals = $976.50

(Run 2 at 30% of TAM)

Gross Receipts Based Residuals –TV and Theatrical

Agreements

• Based on a percentage of Distributor’s gross receipts.

• Performers share in the residuals pool based on pro rata share.

4th Quarter: October 1 – December 31

Due to SAG-AFTRA by March 1 Processed and mailed between March 1 – April 30

3rd Quarter: July 1 – September 30Due to SAG-AFTRA by

November 30Processed and mailed between

December 1 - January 31

2nd Quarter: April 1 – June 30Due to SAG-AFTRA by August

31Processed and mailed between

September 1 - October 31

1st Quarter: January 1 – March 31

Due to SAG-AFTRA by May 31 Processed and mailed between June 1 - July 31

How Does That Math Work?

Example:Day Performer = .4 units Weekly = 2 units

Total units for Theatrical picture = 750 unitsLicenses to Pay TV for $5 million

___________________________________________

Residuals formula: $5 million x 3.6% = $180,000___________________________________________

Day Performer Weekly Performer$240 x .4 = $96 $240 x 2 = $480

(Gross residuals amounts including P&H contribution)

Theatrical Exhibition

Network Exhibition, e.g. NBC,

ABC, CBS, FOX

Syndication Exhibition,

e.g. CW, local

broadcasts

Foreign Free TV Exhibition,

outside the U.S./Canada

e.g. broadcast, basic cable,

free streaming

Home Video

Exhibition, e.g. VHS, DVD, Blu Ray, etc.

Pay TV Exhibition,

e.g. Showtime, HBO, VOD,

etc.

Basic Cable

Exhibition, e.g. TNT, F/X, Syfy,

etc.

Internet Streaming Exhibition

, e.g. Hulu,

YouTube, AVOD,

etc.

Internet Rental

Exhibition, e.g.

Netflix, Amazon Prime,

etc.

Electronic Sell-Thru Exhibition

, e.g. iTunes,

etc.

Made for Theatrical

No residuals

Gross Receipts

Gross Receipts

Gross ReceiptsGross

ReceiptsGross

ReceiptsGross

ReceiptsGross

ReceiptsGross

ReceiptsGross

ReceiptsMade for Network,

Syndication, Foreign TV, Pay TV, or

Home Video

FixedFixed (Run

Based)

Fixed (Run Based) and

Gross Receipts

Fixed and Gross Receipts

Gross Receipts

Gross Receipts

Gross Receipts

Fixed and Gross

Receipts

Gross Receipts

Gross Receipts

Made for Basic Cable Fixed

Fixed (Run Based)


Gross Receipts


Gross Receipts

Gross Receipts


Gross Receipts

Fixed and Gross

Receipts

Gross Receipts

Gross Receipts

Original and Derivative

high budget made for

Subscription Internet

FixedFixed (Run

Based)Fixed (Run

Based)Fixed and

Gross ReceiptsGross

ReceiptsGross

ReceiptsGross

ReceiptsGross

Receipts

Fixed and Gross

Receipts

Gross Receipts

Original (low budget) made

for InternetFixed

Fixed (Run Based)

Fixed (Run Based)


Gross Receipts

Gross Receipts

Gross Receipts

Gross Receipts(if residuals are triggered)

Derivative (low budget)

made for Internet

FixedFixed (Run

Based)Fixed (Run

Based)Fixed and

Gross ReceiptsGross

ReceiptsGross

ReceiptsGross

Receipts

Fixed and Gross

Receipts

Gross Receipts

Gross Receipts

Why Do We Process Residuals?

A collective bargaining mandate since the 1950s

• Performers are Paid Properly

• Clear Records for Contract Enforcement

• Unique Data on Member Earnings and Industry Trends


• Helps Ensure Performers Receive Residuals From Multiple Employers– Current addresses on file with SAG-AFTRA

– Studios do not maintain current contact and address information over time


• Consistent Payment Information to You via SAG-AFTRA Statements

• Member Residuals Earnings History-Performers can view residuals payments online at the SAG-AFTRA Residuals Tracker

How Do We Process Residuals?This is an easy process, right?

Checks In

Here’s the Reality

How Do We Process Residuals?Step 1

Delivery

How Do We Process Residuals?

How Do We Process Residuals?Batched and Organized

Information Online

Volume & Complexity

Studio Provided Payment Report

Payments

0

1,000,000

2,000,000

3,000,000

4,000,000

2006

2007

2008

2009

2010

2011

2012

2013

2014

2015

# of Residual Checks Processed

Keys to ReceivingYour Residuals

• Keep your address current!



Thank you!

Questions?

Residuals Information

TV/Theatrical/New Media Residuals

Los Angeles: 323-549-6505

residuals informational meeting · 2016. 3. 25. · • triggered by theatrical exhibition of a...

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