Residuals Survival Guide

Who Receives Residuals

Writers who worked under a Guild-covered contract and are credited on a project with the credit type listed below receive residuals when the project is reused. Regardless of how much you are paid or what you contribute to the final shooting script on a project, you only receive residuals if you receive final writing credit.

For theatrical projects:

• Written by (100%)
• Story by (25%)
• Screen Story by (25%)
• Screenplay by (100% if no Story by/Screen Story by credit is accorded, 75% if Story by/Screen Story by credit is accorded)
• Adaptation by (10%)

For dramatic television and new media projects:

• Written by (100%)
• Story by (25%)
• Television Story by (25%)
• Teleplay by (75%)
• Adaptation by (10%)
• Created by (see Creator Payments)

You’ll read more about “fixed” residuals and “revenue-based” residuals in this guide, but in a nutshell, the difference is a fixed residual is based on a fixed, set, dollar amount whereas a revenue-based residual is based on the Company’s accountable receipts. These “receipts” received by the Companies vary widely and are not set by the Guild.

The percentages reflected above next to each type of writing credit represent the percentage of the residual you’ll receive on residuals that are revenue-based.

For non-dramatic programs (e.g. comedy/variety, serials, and quiz/audience participation shows), the types of credit that receive residuals are:

• Written by
• Writers
• Special material
• Sketch Written by
• Writing Supervised by
• Head Writer

A note about “fixed” residuals. You’ll see many references throughout this guide to the “Residuals Base” or “applicable minimum” on fixed residuals. The residual base/applicable minimum is the fixed amount on which your residual is calculated and is determined by the date of your contract and the length of the project. The residuals base/applicable minimum is not the same as your initial compensation minimum. Later in this guide you’ll find references to the Residual Bases and Applicable Minimums for projects written under the 2023 MBA.

The remainder of this guide is broken into sections based on the project’s “made-for” market. Each section will cover the various residual formulas for that made-for market. There is a myriad of residuals formulas—hence the need for this Guide—and they are all determined by the project’s initial “made-for” market, e.g. made-for-free television, made-for-basic cable, made-for-HBSVOD, etc. combined with the reuse market. Although there are a variety of formulas which can be very different from one another based on the made-for-market, you’ll also find that there is some crossover in formulas between markets.

Beginning with the 2020 MBA, a new provision called “Platform Switch” or “Medium Switch” was added where a program’s made-for market is determined by the platform on which the program was initially exhibited. The provision only applies to television and SVOD platforms and not theatrical. For example, you could have been hired to write a 1-hour episode of It’s Always Sunny in Philadelphia for the FX basic cable channel, but if that episode had its initial exhibition on Hulu instead then, for residuals purposes, that episode would be considered made-for-HBSVOD.

Exhibition Markets

Residuals for the following reuse or exhibition markets will be outlined in greater detail throughout this guide. The descriptions below are general so if you have additional questions on these markets, please contact us.

1. Theatrical: Released in theaters.
2. Free Television: Television channels you can watch for free (with an antenna) without the need for a subscription. Current examples include ION Television and the CW.
3. Network Television: Refers only to four free television networks: ABC, CBS, NBC, and FOX.
4. Diginet: A Diginet is a secondary digital subchannel, available to watch for free over-the-air with an antenna. Current examples include Bounce TV, Laff, This TV, and Grit.
5. Basic Cable: Television channel package offered by cable tv providers for a flat cable package subscription fee. Current examples of basic cable channels are TBS, TNT, Lifetime, and A&E.
6. Pay Television: Subscription based premium cable channels for which a subscription fee is paid per channel. Current examples are Showtime, HBO, and Starz.
7. Home Video/DVD: Physical media like VHS tapes, DVD, and Blu-ray discs.
8. Subscription Video On Demand (SVOD): includes subscription services like Netflix and Disney+; also includes limited downloads where the user pays a fee to temporarily access the project for a limited period.
9. Electronic Sell Through (EST): also known as “download to own,” refers to the digital purchase of a project where the user pays a one-time fee to permanently download the project.
10. Ad-Supported Video On Demand (AVOD): refers to online streaming of content a user can access for free, but with advertising. Examples include Tubi and Pluto TV.

Residuals for Made-For-Theatrical Projects

All residuals for made-for-theatrical projects are revenue-based. This means the residuals due are based on the revenues (also referred to as “receipts” or “accountable receipts”) received by the Company. Accountable receipts are the total gross receipts, for instance license fees, derived by the distributor for the licensing of the projects to the various reuse markets.

With a revenue-based residual, the payment will vary depending on how much the Company receives and when it is received.

Reuse in Other Markets

Please note that there are no residuals due for exhibition in the theatrical market for projects made-for-theatrical. Initial compensation covers all theatrical use which includes inflight and cruise ships. Residuals are due when the project is reused in a market other than theatrical as follows:

Reuse Market

• SVOD: The residual is 1.2% of accountable receipts.
• AVOD: The residual is 1.2% of accountable receipts.
• Basic Cable: The residual is 1.2% of accountable receipts.
• Free TV: The residual is 1.2% of accountable receipts.
• Pay TV: The residual is 1.2% of accountable receipts.
• DVD: The residual is 1.5% of accountable receipts up to the first $1M in receipts and 1.8% thereafter.
• EST: The residual is 20% of 1.8% of accountable receipts for the first 50K units sold and 20% of 3.25% thereafter.

Due Date

Residual payment for this reuse is due 60 days after the end of the quarter in which the accountable receipts are received. For example, let’s say your film was licensed to Netflix (SVOD) for $1M and, per the license agreement between the Company and Netflix, the $1M license fee is to be paid in installments over the course of 5 years. Therefore, when the Company makes the residual payments for the reuse, they will be paying on the installment they received that quarter, and not on the full $1M license fee all at once. If they received $50,000 of the $1M license fee as an installment in Q4 2025, then they’d make residual payment of $600 ($50,000 x 1.2% = $600) and the due date would be March 1, 2026, which is 60 days after the end of Q4 2025.

If residuals are paid late, Companies are required to pay interest at a rate of 1.5% per month accruing from the date of delinquency until the Guild receives payment in full.

Script Publication Fee (SPF)

In addition to the aforementioned residuals, a Script Publication Fee (“SPF”) is also due. The SPF is a one-time payment that is not a residual, but is paid through the Guild’s Residuals Department. The SPF gives the Company the right to publish the script on DVD and online and is due regardless of whether the Company elects to exercise such right. Payment is due no later than 30 days after the Guild determines the final writing credits. For projects contracted May 2, 2020 and later, the amount due is $12,500. For projects contracted between May 1, 2014 and May 1, 2020, the amount is $10,000.

Examples

In September 2025, Sony licenses a film to HBO for a license fee of $4,000,000. Pursuant to the payment schedule Sony negotiated with HBO, Sony will receive the license fee in three installments of $1.33M each. Sony receives the first payment in October 2025. A residual payment of $16,800, 1.2% of the installment received, is due within 60 days after the end of the quarter in which Sony received payment. Since the quarter ends on December 31, 2025, payment is due on or before March 1, 2026. Future residual payments of 1.2% of the remaining installments are due within 60 days of the end of the quarter in which Sony receives payment.

In January 2025, Lionsgate licensed a film to Netflix for a license fee of $2,500,000. Lionsgate received the license fee in full from Netflix in February 2025. An SVOD residual payment in the amount of $30,000, which is 1.2% of $2,500,000, is due no later than June 1, 2025 because the accountable receipts were received by Lionsgate in quarter ending on March 31, 2025.

Residuals for Made-For-Free Television Projects

There are two main categories of made-for-free television projects: network and syndication. “Network” means the project is made for one of the four networks, Fox, ABC, CBS, or NBC. “Syndication” means the project is made for free television, but is not made for one of the four networks. The CW falls under the syndication umbrella.

Network

Under the network umbrella, there are two types of network programs, those made for network prime time and those made for network non-prime time. Prime time is 8 p.m.-11 p.m. Monday through Saturday and 7 p.m.-11 p.m. on Sundays. Non-prime time is any time outside these windows. Whether the program is made for network prime time or non-prime time, initial compensation covers the first airing on network. Residual payment is triggered once the project has its second run.

In addition to the network prime time and network non-prime time designations, whether the project is dramatic or non-dramatic is also a factor in determining the residual formula.

Network Prime Time (dramatic): The residual for reruns of a made-for-network project in prime time is 100% of the residual base (see the 2023 Schedule of Minimums, page 29). This is true for every rerun on network. Whether it is the second run or the sixth run, it is always 100% of the residual base. Residual payment is due 30 days from the date of the rerun. For example, if you were contracted on June 1, 2025 for a half-hour episode of The Simpsons and it reran on FOX, your residual would be $13,781.

The one exception to the network prime time residuals rule of being paid for every rerun is the so-called “promotional launch” provision. This provision is only applicable to the first season of a series. It allows for three episodes chosen by the Company to be run a second time without triggering a residual, provided that the second run occurs within a two-month period following the initial exhibition of the episode. Further, this exception can only apply to a maximum of 25% of the total number of episodes ordered. For example, if only eight episodes are ordered, then no more than two of the episodes can be chosen for the promotional launch provision.

Network Non-Prime Time (dramatic): The residual for reruns of a made-for-network project rerunning on network in non-prime time is a declining percentage of the residual base (see the 2023 Schedule of Minimums, page 29-30) per run.

Network Prime Time and Network Non-Prime Time (non-dramatic): As mentioned earlier in this guide, the residuals calculations on non-dramatic programs are complex and not as straightforward as dramatic programs, so please contact the Guild via email if you have any questions.

Due Date

For any network reuse, whether prime time or non-prime time or dramatic or non-dramatic, residual payment is due 30 days after the air date.

If residuals are paid late, Companies are required to pay interest at a rate of 1.5% per month accruing from the date of delinquency until the Guild receives payment in full.

Reuse in Other Markets

In addition to the fixed, run-based residuals due for reuse of free television programs on network television, residuals are also due when these projects are reused in a market other than network as follows:

Reuse Market

• SVOD: The residual is 1.2% of accountable receipts.
• AVOD: The residual is 5.5% of residual base for each of two 26-week periods, then 2% of accountable receipts. No residuals are due for reuse during the streaming window. For most programs, the window is 7 consecutive days. However, the window is extended to 24 consecutive days for the first seven episodes of a new series or one-time television motion picture. It is 17 consecutive days for daytime serials and children’s programming. If the project remains available after the streaming window, the residual is a percentage of your applicable minimum. For projects written on or after May 2, 2018, it is 5.5% of the applicable minimum for two consecutive 26-week periods. After one year, 2% of the Company’s accountable receipts.
• Basic Cable: The residual is 1.2% of accountable receipts.
• Syndication: The residual is 2% of accountable receipts
• Diginet: The residual is 2% of accountable receipts provided that the project is out of production.
• Pay TV: The residual is 1.2% of accountable receipts.
• DVD: The residual is 1.5% of accountable receipts up to the first $1M in receipts and 1.8% thereafter.
• EST: The residual is 20% of 1.8% of accountable receipts for the first 100K units sold and 20% of 3.5% thereafter.
• Foreign Free TV: The residual is an initial payment of up to 35% of the applicable minimum. It can be paid all at once or paid in three installments of 15%, 10%, and 10% with each installment being triggered by the foreign distributor’s gross exceeding certain thresholds. See the thresholds in the 2023 Schedule of Minimums, page 31. After the 35% initial payment has been paid, a residual of 1.2% of distributor’s foreign gross is due if the program exceeds another threshold. These thresholds vary depending on length (see the 2023 Schedule of Minimums, page 31).
• Theatrical: For limited theatrical exhibitions of up to eight days with an admission charge, the residual is 3% of the Company’s accountable receipts are due if the exhibition takes place at least 24 hours after the episode’s initial telecast or 30 days if a MOW. Otherwise, the residual is up to 150% of the television residual base or 100% of the theatrical minimum depending on the scope of release. For limited theatrical exhibitions of a 30 or 60-minute episode of up to six days with an admission charge, the residual is 3% of Company’s accountable receipts if the exhibition takes place no more than 30 days in advance of or simultaneous with its exhibition on television. The episode, including the pilot, must be part of a series order of at least 6 episodes. Otherwise, the residual is up to 150% of the television residual base or 100% of the theatrical minimum depending on the scope of release are due.

Due Dates for Revenue-Based Residuals

Residual payment is due 60 days after the end of the quarter in which the accountable receipts are received. For example, let’s say your episode was licensed to Peacock (SVOD) for $1M and, per the license agreement between the Company and Peacock, the $1M license fee is to be paid in installments over the course of 5 years.  When the Company remits the residual payments, they will be remitting payment only on the installment payment they received that quarter, and not on the full $1M license fee all at once. If they received $50,000 of the $1M license fee as an installment in Q4 2025, then they’d remit a residual payment of $600 ($50,000 x 1.2% = $600) and the due date would be March 1, 2026 as that is 60 days after the end of Q4 2025.

If residuals are paid late, Companies are required to pay interest at a rate of 1.5% per month accruing from the date of delinquency until the Guild receives payment in full.

Syndication

As mentioned above, if a project is made for free television that is not one of the big four networks, it is considered made-for-syndication. For example, the CW and ION are syndication. Unlike network, there is no separate designation for prime-time vs non-prime time reuse. The residuals for reruns of a made-for-syndication project, rerunning in syndication is a declining percentage of the residual base (see the 2023 Schedule of Minimums, page 29-30) per run.

• SVOD: The residual is 1.2% of accountable receipts.
• AVOD: The residual is 5.5% of residual base for each of two 26-week periods, then 2% of accountable receipts.
• Basic Cable: The residual is 2% of accountable receipts.
• Diginet: The residual is 2% of accountable receipts provided that the project is out of production.
• Pay TV: The residual is 1.2% of accountable receipts.
• DVD: The residual is 1.5% of accountable receipts up to the first $1M in receipts, and 1.8% thereafter.
• EST: The residual is 20% of 1.8% of accountable receipts for the first 100K units sold, and 20% of 3.5% thereafter.
• Foreign Free TV: The residual is an initial payment of up to 35% of the applicable minimum. It can be paid all at once or paid in three installments of 15%, 10%, and 10% with each installment being triggered by the foreign distributor’s gross exceeding certain thresholds. See the thresholds in the 2023 Schedule of Minimums, page 31. After the 35% initial payment has been paid, a residual of 1.2% of distributor’s foreign gross is due if the program exceeds another threshold. These thresholds vary dependent on length (see the 2023 Schedule of Minimums, page 31).
• Theatrical: For limited theatrical exhibitions of up to 8 days with an admission charge, the residual is 3% of the Company’s accountable receipts are due if the exhibition takes place at least 24 hours after the episode’s initial telecast or 30 days if a MOW. Otherwise, the residual is up to 150% of the television residual base or 100% of the theatrical minimum depending on the scope of release. For limited theatrical exhibitions of a 30 or 60-minute episode of up to six days with an admission charge, 3% of Company’s accountable receipts are due if the exhibition takes place no more than 30 days in advance of or simultaneous with its exhibition on television. The episode, including the pilot, must be part of a series order of at least six episodes. Otherwise, the residual is up to 150% of the television residual base or 100% of the theatrical minimum depending on the scope of release.

Creator Payments

On an original serial or episodic series, the writer(s) entitled to separation of rights and “Created by” credit on the series is entitled to a residual on the creator minimum sequel payment payable for each episode of the series produced. With certain exceptions, creator sequel payment residuals are due for each subsequent broadcast of episodes of a series in the market for which the series was produced. Generally, the residual is a percentage of your creator sequel payment minimum, based on the number of runs as follows:

Examples

On August 13, 2025, a season 3 episode of the half-hour series St. Denis Medical is rerun on NBC in prime time. For this rerun, because the writer was contracted for the episode between May 2, 2024 and May 1, 2026, and received Written by credit, the residual due is $13,781. The creator of the series is due a creator sequel residual of $2,572 for this same rerun. Payment is due no later than September 13, 2025.

On July 20, 2025, a season 3 episode of one-hour series Walker ran for the second time on the CW. For this rerun, because the writer was contracted May 2, 2024 and May 1, 2026, and received Written by credit, the residual due is $12,606 ($31,514 x 40%). Payment was due no later than November 20, 2025.

Residuals for Comedy/Variety Projects

Comedy/Variety Residuals.

The residual base and allocation of residuals for comedy/variety programs differ from other made-for-free television residuals. Comedy/Variety programs include talk shows and sketch comedy programs such as The Late Show With Stephen Colbert and Saturday Night Live. Comedy/variety writers are either hired on an “aggregate,” meaning they are employed as a pool to work a specified term, or on a per show basis.

If you have been employed on an aggregate for a guaranteed term, then your residual base is determined by the number of writers employed, the date of employment, the “scripted” length of the program and how often the program runs (e.g., once a week or more). Once the residual base is determined, the residual compensation is paid in the same ratio that your initial compensation bears to each of the other writers’ compensation. In an aggregate, there are no teams and each writer is treated as an individual for residuals purposes.

The following example, using a residual base of $40,000, demonstrates how the residuals would be allocated if four writers were employed at varying percentages:

Based upon the above calculations, Writer A will receive 37.5% of the residuals paid, Writer B and Writer C will each receive 25% of the residuals, and Writer D will receive 12.5% of the residuals.

If you are not employed for a guaranteed term, then your residuals are based on individual comedy/variety residual bases per writer or team of two. In that instance, each writer (or team of two) receives a residual payment based on the per-show minimum.

Residuals for free television reuse of comedy/variety projects.

For reruns on free television of a comedy/variety program produced for network prime time broadcast once a week or less, the residuals are equal to the following percentages of the residual base:

For reruns of a comedy/variety program not produced for network prime time broadcast, the residuals are equal to the following percentages of the residual base:

Network residuals are due within 30 days of the date of telecast. In the event of a same day, West Coast-only rerun of an awards program, the residual is one-third of what would otherwise be payable. Syndicated residuals are due within four months of the date of telecast.

Residuals for foreign reuse of comedy/variety projects.

Just like residuals for dramatic/episodic programs produced for free television, residuals for foreign reuse of comedy/variety programs are paid at 35% of your residual base. After payment of that 35%, 1.2% of foreign gross receipts is due, in perpetuity, both payable as noted in “Comedy/variety residuals.” The 1.2% payment is triggered when foreign gross receipts reach the following levels:

Payment is due every six months.

Residuals for reuse in other markets.

Residuals for the reuse of made-for-free television comedy/variety programs in other markets including basic cable, pay television, DVD/videocassette, theatrical, and in-flight are the same as those for other made-for-free television product. The made-for-free television residuals are set forth in the “Residuals for Made-For-Free Television Projects” section above.

Residuals for Daytime Serials

Residuals for worldwide reuse of daytime serials (sometimes called “soap operas”) are based on “aggregate” minimums. Aggregate means the writers are employed within a group, often for specific functions, to work for a specified term. This minimum varies depending on when writing services are performed and the length of the program.

The residual received for reuse of an episode of a daytime serial is determined by first dividing the aggregate minimum for head writer services and individual scripts by five; that becomes the residual base per show. Thereafter, the residuals are allocated in the following percentages:

In the event there is more than one writer in a category, the applicable percentage is divided equally among the writers in that category.

Residuals for reuse on network and syndicated television are payable in the same manner as those for other made-for-free television product. (See here.)

For network television reuse, residuals are due within 30 days of the date of telecast.

For syndicated television reuse, residuals are due within four months of the date of telecast.

For programs on which the writer’s services commenced prior to May 2, 2001, residuals for foreign television reuse are paid at 35% of your residual base (payable in increments of 15%- 10%-10% when receipts reach certain levels). For programs on which the writer’s services commenced on or after May 2, 2001, in addition to the 35% payment, you will receive your share of 1.2% of foreign gross receipts (when foreign gross receipts reach the levels set forth on here).

For foreign television reuse, residuals are due within 30 days of the Company’s knowledge of the foreign telecast, but no later than six months from the first foreign telecast.

Residuals for reuse in all other markets are payable in the same manner as those for other made-for-free television product. (See here.)

For reuse in all other markets, residuals are due within 60 days of the end of the quarter in which the Company received the revenues.

Residuals for Made-For-Basic Cable Television Projects

Projects made-for-basic cable and reused on basic cable are generally paid pursuant to the “Sanchez Formula.” The formula is called “Sanchez” because a project known as Sanchez of Bel Air was one of the first made-for-basic-cable series for which the Guild negotiated basic cable residuals. The Sanchez Formula is a fixed, run-based formula that is paid as a percentage of a residuals base (see the 2023 Schedule of Minimums, page 29-30).

For example, if you were contracted on June 1, 2025 for a half-hour episode of a series made for the Disney Channel, and that episode reran on the Disney Channel, the residual for the 2nd run would be calculated as follows: $17,337 x 50% = $8,666.

Due Date

Residual payment is due 120 days after the air date. Note that the residual payment for runs 2 through 5 is paid all at once and due upon the second run. Payment is due even if runs 3, 4, and 5 never occur. Thereafter each run is paid on a per run basis.

If residuals are paid late, Companies are required to pay interest at a rate of 1.5% per month accruing from the date of delinquency until the Guild receives payment in full.

Reuse in Other Markets

In addition to the fixed, run-based residuals that are due for reuse on basic cable, residuals are also due when the project is reused in a market other than basic cable as follows:

Reuse Market

• SVOD: The residual is 1.2% of accountable receipts
• AVOD: The residual is 5.5% of residual base for each of two 26-week periods, then 2% of accountable receipts. No residuals are due for reuse during the streaming window. For most programs, the window is 7 consecutive days. However, the window is extended to 24 consecutive days for the first seven episodes of a new series or one-time television motion picture. It is 17 consecutive days for daytime serials and children’s programming. If the project remains available after the streaming window, the residual is a percentage of your applicable minimum. For projects written on or after May 2, 2018, it is 5.5% of the applicable minimum for two consecutive 26-week periods. After one year, 2% of the Company’s accountable receipts.
• Syndication: The residual is 2% of accountable receipts
• Diginet: The residual is 2% of accountable receipts provided that the project is out of production.
• Pay TV: The residual is 1.2% of accountable receipts.
• DVD: The residual is 1.5% of accountable receipts up to the first $1M in receipts and 1.8% thereafter.
• EST: The residual is 20% of 1.8% of accountable receipts for the first 100K units sold and 20% of 3.5% thereafter.
• Foreign Free TV: The residual is an initial payment of up to 35% of the applicable minimum. It can be paid all at once or paid in three installments of 15%, 10%, and 10% with each installment being triggered by the foreign distributor’s gross exceeding certain thresholds. See the 2023 Schedule of Minimums, page 31 for the thresholds. After the 35% initial payment has been paid, a residual of 1.2% of distributor’s foreign gross is due if the program exceeds another threshold. These thresholds vary dependent on length (see the 2023 Schedule of Minimums, page 31).
• Theatrical: For limited theatrical exhibitions of up to eight days with an admission charge, the residual is 3% of the Company’s accountable receipts is due if the exhibition takes place at least 24 hours after the episode’s initial telecast or 30 days if a MOW. Otherwise, the residual is up to 150% of the television residual base or 100% of the theatrical minimum depending on the scope of release. For limited theatrical exhibitions of a 30 or 60-minute episode of up to six days with an admission charge, 3% of Company’s accountable receipts is due if the exhibition takes place no more than 30 days in advance of or simultaneous with its exhibition on television. The episode, including the pilot, must be part of a series order of at least six episodes. Otherwise, the residual is up to 150% of the television residual base or 100% of the theatrical minimum depending on the scope of release.

Due Dates for Revenue-Based Residuals

Residual payment is due 60 days after the end of the quarter in which the accountable receipts are received. For example, let’s say your episode was licensed to AMC+ (SVOD) for $1M and, per the license agreement between the Company and AMC+, the $1M license fee is to be paid in installments over the course of 5 years.  When the Company remits the residual payments, they will be remitting payment only on the installment payment they received that quarter, and not on the full $1M license fee all at once. If they received $50,000 of the $1M license fee as an installment in Q2 2025, then they’d remit residual payment of $600 ($50,000 x 1.2% = $600) and the due date would be September 1, 2025 as that is 60 days after the end of Q2 2025.

If residuals are paid late, Companies are required to pay interest at a rate of 1.5% per month accruing on the earlier of seven days after notice in writing to Company from the Guild of such delinquency or 60 days after such payment becomes due and payable.

Creator Payments

On an original serial or episodic series, the writer(s) entitled to separation of rights and “Created by” credit on the series is entitled to a residual on the creator minimum sequel payment payable for each episode of the series produced. With certain exceptions, creator sequel payment residuals are due for each subsequent broadcast of episodes of a series in the market for which the series was produced. Generally, the residual is a percentage of your creator sequel payment minimum, based on the number of runs as follows:

For MOW sequel residuals, in addition to the fixed run-based payments, supplemental market residuals will be payable at an additional 25% of the applicable minimum residual payable to the credited writers of the MOW Sequel.

Examples

On April 22, 2025, an episode of a SyFy channel one-hour series reran for the second time on SyFy. The writer of this episode received Written by credit and was contracted for the episode between May 2, 2025 and May 1, 2026. The residual payment due is $15,757 (50% of $31,514) and covers runs two through five. The residual payment was due no later than August 22, 2025. The creator of the series is also due a residual payment for this rerun. The creator sequel residual due is $2,444 (50% of $4,887) as they were contracted for the pilot between May 2, 2024 and May 1, 2025.

Made for Pay Television

Residuals for reuse on domestic pay television of a dramatic or Comedy-Variety project made for pay TV are set forth as specified dollar amounts in the MBA. A fixed residual payment is due for each exhibition year the project is available on the pay television service.

In contrast with made-for-free television and made-for-basic cable, pay television reuse is not paid on a per-run basis. Rather, the pay television residual is triggered after either the 10th day of exhibition or one year form the date of the initial exhibition on the pay television service. The first 10 exhibition days on pay television is considered the first exhibition year. The 11th exhibition day on that service triggers residual payment for the second exhibition year.

For example, if an episode premiered on January 7, 2025 on HBO and continued to air seven more times that same day, the residual is not triggered by each of those seven runs. Instead, we look at exhibition days, so January 7, 2025 would count as only one exhibition day. If the episode continued to rerun every day between January 7, 2024 and January 17, 2025, residual payment would be triggered on January 17, 2025—the 11th exhibition day.

Residual payment for each exhibition year is a fixed, annual payment and is due each exhibition year as long as the project continues to be run on pay television. As with most other fixed payments, the amount varies depending on the length of the project. The residual payment for each exhibition year is listed in the 2023 Schedule of Minimums, page 32. Payment is due 120 days after the first exhibition day of the second exhibition year. The due date for the second exhibition year then sets the due date for future exhibition year payments. For example, if residual payment for exhibition year 2 is due on July 1, 2025, all future exhibition years’ payment will then be due on July 1.

If residuals are paid late, Companies are required to pay interest at a rate of 1.5% per month accruing from the date of delinquency until the Guild receives payment in full.

Note that reuse of a made-for-pay television program on the over the top services (“OTT”) of a pay television service, such as MAX and Paramount+ With Showtime, is considered pay television reuse and not streaming/SVOD reuse. For example, if someone watched episode 1 of The Penguin on MAX when it premiered on September 19, 2024 that reuse on MAX is pay television reuse and there would not be a separate residual payment for the HBO pay television reuse, even though the episode was available on both HBO and MAX. Each day the program is available on MAX constitutes an exhibition day, so the 11th exhibition day is generally 11 days after the project’s release on the OTT service.

Example

If you wrote an one-hour episode of The Penguin and were contracted for that episode between May 2, 2024 and May 1, 2025, the residual payment for exhibition year 2, 3, and 4 would be $9,577 for each year. Residual payment for year 5 or any subsequent year beyond year 5 would be $1,324.

If you wrote an half-hour episode of Hacks and were contracted for such episode between September 25, 2023 and May 1, 2024, the residual payment for exhibition year 2, 3, and 4 would be $5,391 for each year. Residual payment for year 5 or any subsequent year beyond year 5 would be $972.

Reuse in Other Markets

In addition to the fixed, exhibition year residual payments due for reuse of pay television projects on domestic pay television, residuals are also due when the project is reused in a market other than pay television as follows:

Reuse Market

• SVOD: The residual is 1.2% of accountable receipts.
• AVOD: The residual is 5.5% of residual base for each of two 26-week periods, then 2% of accountable receipts. No residuals are due for reuse during the streaming window. For most programs, the window is 7 consecutive days. However, the window is extended to 24 consecutive days for the first seven episodes of a new series or one-time television motion picture. It is 17 consecutive days for daytime serials and children’s programming. If the project remains available after the streaming window, the residual is a percentage of your applicable minimum. For projects written on or after May 2, 2018, it is 5.5% of the applicable minimum for two consecutive 26-week periods. After one year, 2% of the Company’s accountable receipts.
• Syndication: The residual is 2% of accountable receipts.
• Diginet: The residual is 2% of accountable receipts provided that the project is out of production.
• Foreign Pay TV: The residual 2% of accountable receipts.
• DVD: The residual is 2% of accountable receipts from net unit sales in excess of 75,000 for ½ hour and 1-hour projects, 100,000 units for projects longer than 1-hour.
• EST: The residual is 20% of 1.8% of accountable receipts for the first 100K units sold, and 20% of 3.5% thereafter.
• Foreign Free TV: The residual is an initial payment of up to 35% of the applicable minimum. It can be paid all at once or paid in three installments of 15%, 10%, and 10% with each installment being triggered by the foreign distributor’s gross exceeding certain thresholds. See the 2023 Schedule of Minimums, page 31 for the thresholds. After the 35% initial payment has been paid, a residual of 1.2% of distributor’s foreign gross is due if the program exceeds another threshold. These thresholds vary dependent on length (see the 2023 Schedule of Minimums, page 31).
• Theatrical: For limited theatrical exhibitions of up to 8 days with an admission charge, the residual is 3% of the Company’s accountable receipts if the exhibition takes place at least 24 hours after the episode’s initial telecast or 30 days if a MOW. Otherwise, up to the residual is 150% of the television residual base, or 100% of the theatrical minimum depending on the scope of release. For limited theatrical exhibitions of a 30 or 60-minute episode of up to 6 days with an admission charge, 3% of Company’s accountable receipts if the exhibition takes place no more than 30 days in advance of or simultaneous with its exhibition on television. The episode, including the pilot, must be part of a series order of at least 6 episodes. Otherwise, the residual is up to 150% of the television residual base, or 100% of the theatrical minimum depending on the scope of release.

Revenue-based residuals are due within 60 days of the end of the quarter in which gross receipts or licensing fees are received by the Company.

Residuals for Dramatic Made-For High Budget Subscription Video on Demand (“HBSVOD”)

Residuals for reuse on a SVOD service of a project made-for-HBSVOD are set forth as specified dollar amounts in the MBA.

While the formula for calculating domestic HBSVOD residuals has remained the same since HBSVOD was first introduced in the 2014 MBA, many of the factors have changed over the last three MBAs.

Fixed foreign HBSVOD residuals were introduced in the 2017 MBA for SVOD services that operate globally, such as Netflix, Amazon, and Disney+. The formula remained mostly the same in the 2020 MBA, with increases to the foreign residual payments in later exhibition years. However, the formula changed more significantly in the 2023 MBA, which resulted in a significant increase in the fixed foreign HBSVOD residual.

The domestic and foreign formulas for the 2017-2023 MBAs are detailed below.

The Formula: Domestic (2017-2023 MBAs)

Residual Base x Subscriber Factor x Exhibition Year Percentage

Residual Base Defined

The Residual Base is the base amount by which the subscriber factor and exhibition year percentage are multiplied. The residual base amounts vary based on the length of the program and contract date. For example, these are the residual bases for 30 and 60-minute projects contracted between September 25, 2023 and May 1, 2026:

For the residual bases, refer to the 2014, 2017, 2020, and 2023 Schedule of Minimums.

Subscriber Factor Defined

The Subscriber Factor is a multiplier based on the number of subscribers of the SVOD service. The more subscribers a service has, the greater the multiplier. The subscriber factors are broken into the subscriber tiers below. Note that the subscriber tier at the time the program is written applies to the program in perpetuity.

*The 2023 MBA collapsed Tiers 1 and 2 with Tier 3

*Note that the fixed HBSVOD formula under the 2014 MBA covers worldwide use

The Guild’s Contracts Department reevaluates the subscriber tiers of the streaming services each July 1st. As of 7/1/22, the subscriber tiers of the various services are as follows:

See the subscriber tiers by service pre-7/1/22.

Exhibition Year Defined

Under the 2017-2023 MBAs, your initial compensation covers 90 days of streaming on an SVOD platform with more than 1M domestic subscribers. For SVOD services with fewer than 1M domestic subscribers, initial compensation covers one year of streaming. Under the 2014 MBA, initial compensation covers one year of streaming on the SVOD platform, regardless of the number of subscribers.

After the expiration of the 90 days or one year of streaming, as the case may be, payment is triggered. Thereafter, residuals are due for each 12-month period of availability on the SVOD service. These windows or periods are called “exhibition years.” (Note that the payment trigger date is not the residual due date. This is explained later in the Payment Due Dates section below.)

The Formula – Foreign (2017-2023 MBAs)

The 2023 MBA saw significant gains in the foreign HBSVOD residual formula. For the first time, the residual amount is based on a service’s number of foreign subscribers. The formula is the same as that for domestic HBSVOD: Residual Base x Subscriber Factor x Exhibition Year Percentage. However, the foreign residual payment has its own separate set of subscriber factors:

The foreign formula under the 2020 and 2017 MBAs is a percentage of the domestic residual payment. For programs written under the 2017 MBA, that percentage starts at 35% and declines over time. For programs written under the 2020 MBA, the annual percentage stays the same at 35% of the domestic residual payment for that year.

As mentioned above, the fixed foreign HBSVOD residual is only for services that operate globally. For reuse on a foreign SVOD service that does not operate globally, such as Peacock, the residual is 1.2% of the accountable receipts. For example, if a project is made for Peacock and streamed on SVOD internationally, the residual would be 1.2% because Peacock does not operate globally.

Payment Due Dates

For programs written under the 2017-2023 MBAs, residual payment for Exhibition Year 1 is due 60 days after the end of the quarter in which the 91st day of streaming falls. This day sets the residual payment due date for subsequent exhibition years. For example, if the episode is released on November 1, 2025, the 91st day of streaming is February 2, 2026, the quarter end date is March 31, 2026, and the payment due date for Exhibition Year 1 is, therefore, June 1, 2026. All subsequent exhibition year payments will be due annually on June 1st. Year 2 will be due on June 1, 2027, Year 3 will be due June 1, 2028, and so on.

If residuals are paid late, Companies are required to pay interest at a rate of 1.5% per month accruing from the date of delinquency until the Guild receives payment in full. If you have a question concerning the grandfathering status of your project, please contact our Residuals Department.

Grandfathering

Unlike series made for television in which a writer’s contract date determines the applicable residual formula, projects made-for-HBSVOD don’t solely look at contract date to determine the residual formula. Various projects are considered “grandfathered” to older MBAs, regardless of the date of the writer’s contract. For example, a writer could have been contracted during the term of the 2017 MBA on an existing series, but have their residuals calculated using the 2014 HBSVOD formula.

If you have a question concerning the grandfathering status of your project, please contact our Contracts Department.

The 2020 MBA put an end to most new grandfathering on current and future series and seasons. Any new season of a HBSVOD series where the principal photography of the first episode of that season begins on or after July 1, 2021 will fall under the residual formula of the MBA in effect at the time the writer was contracted. This end to grandfathering applies to series and seasons that fell under or were grandfathered to the 2017 MBA. Series such as Stranger Things, which was grandfathered to the 2014 MBA, will continue to be grandfathered under the 2014 MBA, even for new seasons that enter into principal photography after July 1, 2021.

Examples

If you wrote a 1-hour episode of a Netflix series under the 2023 MBA and received a final Written by credit, your Exhibition Year 1 residual payment would be calculated using $30,398 as the base. Since it is Netflix, the domestic subscriber factor is 150% and the exhibition year percentage is 45% for Year 1.

$30,398 x 45% x 150% = $20,519

For foreign reuse, Exhibition Year 1, you would receive $12,311 because Netflix has more than 75M foreign subscribers.

$30,398 x 45% x 90% = $12,311

If you wrote a 1-hour episode of a Disney+ series under the 2020 MBA and received a final Written by credit and you were contracted during May 2, 2021-May 1, 2023, your Exhibition Year 1 residual payment would be calculated using $29,657 as the base. Since it is Disney+, the domestic subscriber factor is 100% and the exhibition year percentage is 45% for Year 1.

$29,657 x 45% x 100% = $13,346

For foreign reuse, Exhibition Year 1, you would receive $4,671, which is 35% of the domestic residual.

$13,346 x 35% = $4,671

Performance Metric Bonus

New to the 2023 MBA is the Performance Metric Bonus in which a bonus residual is triggered on HBSVOD programs if the equivalent of 20% or more of a streaming service’s U.S. subscribers view the series or feature within the first 90 days of release. The bonus is equal to 50% of the applicable fixed residual, including both the domestic and foreign residual if the service operates globally. The bonus applies to programs released on or after January 1, 2024. Made-for-HBSVOD projects written under prior MBAs are eligible for the bonus as long as they are first released on or after January 1, 2024.

For example, using the combined domestic and foreign Exhibition Year 1 residual payment of $32,830 ($20,519 + $12,311) for a Netflix 1-hour episode under the 2023 MBA, the bonus residual would be $16,415.

Payment of the bonus is due 60 days after the end of the calendar quarter in which the 90-day measuring period for domestic views is complete.

If the bonus is paid late, Companies are required to pay interest at a rate of 1.5% per month accruing from the date of delinquency until the Guild receives payment in full.

The performance metric is calculated based on the number of domestic views divided by number of domestic subscribers, and domestic views are calculated as the total aggregated domestic hours viewed for all episodes of a season. For a feature, the hours are calculated in increments of 0.1 hour (i.e., 6 minutes) divided by the total runtime of the program. A third-party auditor is available to resolve any dispute over which programs qualify for the bonus.

Reuse in Other Markets

Residuals are also due if your made-for-HBSVOD project is reused in a market other than the SVOD platform on which it was originally released:

Reuse Market

• Free Streaming (related or affiliated service): If the HBSVOD program is released on a free/ad-supported service that is related to the SVOD platform for which the HBSVOD program is made, such as an Amazon Prime project being reused on Freevee, within one year of release on the SVOD platform, the residual due is 5.5% of the HBSVOD residual base and covers 26 weeks of streaming on the free/ad-supported service. If the program is still available after 26 weeks, a second residual payment of 5.5% of the HBSVOD base is due. If the program is available on a free/ad-supported service one year or more following the initial release date on the SVOD platform, the residual is 2% of accountable receipts.
• Free Streaming (unrelated or unaffiliated service): If the HBSVOD program is released on a free/ad-supported service that is unrelated/unaffiliated to the SVOD platform on which it was originally released, the residual is 2% of accountable receipts.
• SVOD (a service other than the service on which it was originally released): The residual is 1.2% of accountable receipts. An example of this would be if the HBSVOD program was originally released on Netflix and is subsequently released on Disney+.
• Network Prime Time: If the HBSVOD program is released on network prime time (“NPT”), the residual is 100% of the NPT residual base.
• Basic Cable: If the HBSVOD program is release on basic cable, the residual is 2% of accountable receipts.
• Foreign Free TV: If the HBSVOD program is released on foreign free tv, the residual is 35% of the other than network prime time minimum.
• Theatrical: For limited theatrical exhibitions of up to 8 days with an admission charge, 3% of the Company’s accountable receipts is due if the exhibition takes place at least 24 hours after the episode’s initial telecast or 30 days if a MOW. Otherwise, the residual is up to 150% of the television residual base, or 100% of the theatrical minimum depending on the scope of release. For limited theatrical exhibitions of a 30 or 60-minute episode of up to 6 days with an admission charge, 3% of Company’s accountable receipts if the exhibition takes place no more than 30 days in advance of or simultaneous with its exhibition on television. The episode, including the pilot, must be part of a series order of at least 6 episodes. Otherwise, the residual is up to 150% of the television residual base, or 100% of the theatrical minimum depending on the scope of release.

Residuals for Non-Dramatic Made-For-High Budget Subscription Video on Demand (“HBSVOD”)

Under the 2023 MBA, non-dramatic programs (Comedy-Variety, Quiz & Audience, Daytime Serials, etc.) can now be classified as HBSVOD if they meet the high budget thresholds. Previously, no matter how high the budget, non-dramatic programs could not be classified as HBSVOD. This new designation comes with increased initial compensation (please reach out to the Guild’s Contracts Department for more information in this regard). The residual formula for these programs did not change and remains the same as in previous MBAs.

Unlike dramatic HBSVOD which has a fixed residual, the formula for non-dramatic HBSVOD is 1.2% of the portion of the license fee attributable to qualifying period. Your initial compensation (i.e. the script fee) covers 26 weeks of SVOD reuse, and then residuals are due for the period after that initial 26-week period. The Company allocates a portion of the license fee toward the first 26-week period and the residual of 1.2% is calculated on the remainder of the license fee.

For example, let’s say Sony produced a series for Peacock and Peacock paid Sony a license fee of $1M for the right to stream the project for a five-year period. Then let’s say Sony allocates 50% of that $1M license fee to the initial 26-week period. This would mean that residuals would be calculated on the remaining 50% of the license fee, which is $500,000. 1.2% x $500,000 = $6,000.

The residual payment is due 60 days after the end of the quarter in which the license fee attributable to the period after the initial 26-week period is received. Using the example above, the residual payment is triggered once Sony receives the first dollar beyond the initial $500,000 payment. License fees are often paid in installments over the course of the term of the license or are paid in one lump sum. In either scenario, the residual payment is due 60 days after the end of the quarter in which the portion of the license fee on which they’re paying is received.

If residuals are paid late, Companies are required to pay interest at a rate of 1.5% per month accruing from the date of delinquency until the Guild receives payment in full.

Reuse in Other Markets

Residuals are also due if your non-dramatic made-for-HBSVOD project is reused in a market other than the SVOD platform on which it was originally released:

• Free Streaming (original): If the program is original, meaning it is not derivative of an existing television project that was produced for traditional media, then there is no residual for free/ad-supported streaming. Initial compensation covers all free streaming reuse.
• Free Streaming (derivative): If the program is derivative, meaning it is based on an existing television project that was produced for traditional media, then initial compensation covers 13 weeks of free streaming. If the program is still available for free streaming after 13 weeks, the residual due is 3.5% of the residual base (see the 2023 Schedule of Minimums, pages 10-12) for two 26-week periods. If the program is still available to stream on a free streaming service after one year of release, the residual is 2% of accountable receipts.
• SVOD (a service other than the service on which it was originally released): The residual is 1.2% of accountable receipts. An example of this would be if the program was originally released on Netflix and is subsequently released on Disney+.
• Network Prime Time: If the program is released on network prime time (“NPT”), the residual is 100% of the NPT residual base.
• Basic Cable: If the program is released on basic cable, the residual is 2% of accountable receipts.
• Foreign Free TV: If the program is released on foreign free tv, the residual is 35% of the other than network prime time minimum.

Residuals for Made-for-Non-High Budget Subscription Video on Demand (“SVOD”)

Whether your project is dramatic or non-dramatic, if it is made for an SVOD service and does not meet the budget thresholds to be considered High Budget SVOD, but is budgeted at least $25K per minute, the residual for SVOD reuse is 1.2% of the portion of the license fee attributable to the period after 26 weeks following release. Your initial compensation (i.e. the script fee) covers 26 weeks of SVOD reuse, and then residuals are due for the period after that initial 26-week period. The Company allocates a portion of the license fee toward the first 26-week period and the residual of 1.2% is calculated on the remainder of the license fee.

For example, let’s say Warner Bros produced a series for Netflix and Netflix paid Warner Bros a license fee of $1M in order to have the right to stream the project for a five-year period. Then let’s say Warner Bros allocates 50% of that $1M license fee to the initial 26-week period. This would mean that residuals would be calculated on the remaining 50% of the license fee of $500,000. The formula would be 1.2% x $500,000 = $6,000.

Payment is due 60 days after the end of the quarter in which the license fee attributable to the period after the initial 26-week period is received. Using the example above, payment is triggered once Warner Bros. receives the first dollar beyond the initial $500,000 payment. License fees are often paid in installments over the course of the term of the license or are paid in one lump sum. In either scenario, payment is due 60 days after the end of the quarter in which the portion of the license fee on which they’re paying is received.

If residuals are paid late, Companies are required to pay interest at a rate of 1.5% per month accruing on the earlier of seven days after notice in writing to Company from the Guild of such delinquency or 60 days after such payment becomes due and payable.

Reuse in Other Markets

Residuals are also due if your made-for-SVOD project is reused in a market other than the SVOD platform on which it was originally released:

• Free Streaming (original): If the program is original, meaning it is not derivative of an existing television project that was produced for traditional media, then there is no residual for free/ad-supported streaming. Initial comp covers all free streaming reuse.
• Free Streaming (derivative): If the program is derivative, meaning it is based on an existing television project that was produced for traditional media, then initial compensation covers 13 weeks of free streaming. If the program is still available for free streaming after 13 weeks, the residual due is 3.5% of the residual base (see the 2023 Schedule of Minimums, pages 10-12) for two 26-week periods. If it is still available to stream on a free streaming service after one year of release, the residual is 2% of accountable receipts.
• SVOD (a service other than the service on which it was originally released): If the program is released on an SVOD service other than the service on which it was originally released, the residual is 1.2% of the portion of the license fee attributable to the period after the initial 26-week period. An example of this would be if the program was originally released on Peacock and is subsequently released on HULU.
• Network Prime Time: If the program is released on network prime time (“NPT”), the residual is 100% of the NPT residual base.
• Basic Cable: If the program is released on basic cable, the residual is 2% of accountable receipts.
• Foreign Free TV: If the program is released on foreign free tv, the residual is 35% of the other than network prime time minimum.

Residuals for Non-High Budget Made-for-a Free/Ad-supported Streaming Service (“AVOD”)

If the program is original, meaning it is not derivative of an existing television project that was produced for traditional media, there is no residual for free/ad-supported streaming. Initial compensation covers all free streaming reuse.

If the program is derivative, meaning it is based on an existing television project that was produced for traditional media, then initial compensation covers 13 weeks of free streaming. If the program is still available for free streaming after 13 weeks, the residual due is 3.5% of the residual base (see the 2023 Schedule of Minimums, pages 10-12) for two 26-week periods. If it is still available to stream on a free streaming service after one year of release, the residual is 2% of accountable receipts.

Reuse in Other Markets

Residuals are also due if your made-for-AVOD project is reused in a market other than AVOD:

• SVOD: If the program is released on a SVOD service, the residual is 1.2% of the portion of the license fee attributable to the period after the initial 26-week period.
• Network Prime Time: If the program is released on network prime time (“NPT”), the residual is 100% of the NPT residual base.
• Basic Cable: If the program is released on basic cable, the residual is 2% of accountable receipts.
• Foreign Free TV: If the program is released on foreign free tv, the residual is 35% of the other than network prime time minimum.

Residuals for Made-for-High Budget Free/Ad-supported Streaming Service (“HBAVOD”)

Under the 2023 MBA, high budget programs made for an ad-supported streaming service can now be classified as HBAVOD if they meet the high budget thresholds. Previously, no matter how high the budget, programs made for a free, ad-supported service did not have a separate designation from a low budget project made-for-AVOD. This new designation also comes with increased initial compensation (please reach out to the Guild’s Contracts Department for more information in this regard).

The residual for AVOD reuse of an HBAVOD program is 2% of the portion of the license fee attributable to the period after 26 weeks following release. Your initial compensation (i.e. the script fee) covers 26 weeks of AVOD reuse, and then residuals are due for the period after that initial 26-week period. The Company allocates a portion of the license fee toward the first 26-week period and the residual of 2% is calculated on the remainder of the license fee.

For example, let’s say Sony produced a series for Tubi and Tubi paid Sony a license fee of $1M in order to have the right to stream the project for a five-year period. Then let’s say Sony allocates 50% of that $1M license fee to the initial 26-week period. This would mean that residuals would be calculated on the remaining 50% of the license fee of $500,000. The formula would be 2% x $500,000 = $10,000.

The residual payment is due 60 days after the end of the quarter in which the license fee attributable to the period after the initial 26-week period is received. Using the example above, the residual payment is triggered once Sony receives the first dollar beyond the initial $500,000 payment. License fees are often paid in installments over the course of the term of the license or are paid in one lump sum. In either scenario, residual payment is due 60 days after the end of the quarter in which the portion of the license fee on which they’re paying is received.

If residuals are paid late, Companies are required to pay interest at a rate of 1.5% per month accruing on the earlier of seven days after notice in writing to Company from the Guild of such delinquency or 60 days after such payment becomes due and payable.

Reuse in Other Markets

Residuals are also due if your made-for-AVOD project is reused in a market other than AVOD:

• SVOD: If the program is released on an SVOD service, the residual is 1.2% of the license fee.
• Network Prime Time: If the program is released on network prime time (“NPT”), the residual is 100% of the NPT residual base.
• Basic Cable: If the program is released on basic cable, the residual is 2% of accountable receipts.
• Foreign Free TV: If the program is released on foreign free tv, the residual is 35% of the other than network prime time minimum.

Residuals for Made-For-PBS Projects

PBS differs from other free television markets because your initial compensation covers an initial license period of four national releases on PBS within three years. A “national release” includes unlimited runs within a seven day period. Generally, after the three-year license period or the four national releases, the Company may purchase additional license periods upon payment to the credited writers of a percentage of the applicable PBS minimums. Note that license fees for the second and subsequent licenses are calculated based on the minimums in effect at the commencement of each license period rather than those in effect at the time the writer was employed.

A percentage of the PBS minimum is also paid as an advance against revenue for use on pay television, videocassette and basic cable. Release in foreign markets is paid the same as free television except that the 35% must be paid in a single installment. (See here). For the PBS agreement and minimums, please visit the Public Television section under Contracts & Enforcement.

If a project made for PBS is sold to domestic free television, the writer is paid according to the same formula used in calculating residuals due for made-for-free television product using MBA minimums in lieu of PBS minimums.

Residuals for the Use of Excerpts

The use of any portion of one television program or theatrical motion picture in another television program or theatrical motion picture is called an excerpt. Payments are based upon fixed rates that vary according to the length of the excerpt, where the excerpt is used, and how many excerpts are used in the program.

For “compilation” programs (e.g., “best of” or “anniversary programs”), an aggregate payment, based on the length of the program, is due for use of the excerpts included therein. The Guild then allocates the aggregate payment among the credited writer(s) of the programs from which the excerpts were taken.

This is a one-time-only payment. There are no residuals payable for the excerpt when the program reruns. However, there are residuals due to the writer of the program into which the excerpt is placed.

If you have additional questions, please visit Excerpt (“Clip”) Payments, or contact the Residuals Department via email or call the WGAW Residuals Department at (323) 782-4700.

Residuals on Creator Sequel Payments

On an original serial or episodic series, the writer(s) entitled to Separation of Rights and “Created by” credit on the series is entitled to a residual on the creator sequel payment minimum payable for each episode of the series produced beyond the pilot. With certain exceptions, creator sequel payment residuals are due for each subsequent broadcast of episodes of a series in the market for which the series was produced.

The residual is a percentage of your creator sequel payment, based on the number of runs. For made-for free television programs rerun on free television, the percentages are as follows:

Creator sequel payment residuals for free television reuse are due within the same time frames as payments for free television reuse set forth here.

For made-for-basic cable programs rerun on basic cable, the percentages are as follows:

Creator sequel payment residuals for basic cable reuse are due within four months of the run date.

The Company may include a provision in your writing services agreement to pay 100% of an overscale negotiated sequel payment for the first run and an additional 100% of the negotiated amount to be equally divided among runs two through six. Depending on how much the agreed upon amount exceeds Guild minimums, such provision may violate the MBA as insufficient. Therefore, amounts individually negotiated for reruns should be checked with the WGAE to ensure they do not fall below the minimums provided above.

Creator sequel residuals are not payable on residuals paid at 2% of accountable receipts for licenses to syndication dated on or after 7/1/20.

Character Payments

If you create a character for an episodic television series in a script other than the pilot script and the character recurs on subsequent episodes of the series, you may be entitled to a character payment every time that character reappears in a new episode or if that character is spun off into a new series. Generally, in order to receive character payments for a character, you must have fully developed and fully described a unique, non-generic character with specific characteristics that are established in a script written by you.

Character payments are paid through the Residuals Department at the end of each season of a series. For questions regarding whether you are entitled to a Character Payment or how Character Payments are calculated, please contact WGAE Business Agent Mack Harden via email or call the WGAW at (323) 782-4501.

Foreign Copyright Levies

Foreign copyright levies are funds received by the WGA on behalf of U.S. writers. Foreign collection societies send the WGA taxes and levies imposed by foreign governments for the benefit of theatrical and television authors. The primary source of these monies is “private copy” taxation for home video recording of television broadcasts. The taxes are levied on sales of blank videocassettes and/or VCRs. Based on allocation information provided by the collection societies, disbursement of these funds is then made to writers. For additional information regarding Foreign Copyright Levies, please visit the Foreign Levies Program, or the Residuals Department via email or call the WGAW at (323) 782-4607.

Commissions on Residuals

In general, agents may not collect commissions on residuals although, under certain limited circumstances, commissions may be payable if the agent has negotiated higher residuals for the writer than are required by the MBA. For example, overscale residual compensation is commissionable, but only to the extent the commission does not reduce your residual compensation to less than WGA minimums. This is outlined in the Artists’ Manager Basic Agreement of 1976. For additional information, please contact the WGAE Agency Administrator via email or call the WGAW Agency Department at (323) 782-4502.

Residuals for Deceased Members

Upon the death of a writer or the beneficiary of a deceased writer, the Membership Department and/or the Residuals Estates/Trusts Desk should be notified as soon as possible. The Guild will need the name, address, and telephone number of the person to be contacted for follow-up procedures necessary to expedite the transfer of residual payments to the correct beneficiary(ies). Additionally, in order to facilitate the continued payment of residuals to the beneficiary(ies), the Guild, and the paying Company if requested, should be furnished an official (raised seal) Certificate of Death, Letters Testamentary or Letters of Administration, and a copy of the Last Will and Testament. For additional information, please the Residuals Department via email or call the WGAW Estates/Trusts Desk at (323) 782-4521.

Note: Notification to the Pension Plan and Health Fund does not replace notification to the WGA Membership Department and/or the Legal Estates/Trusts Desk.

Dues on Residuals

Membership dues are assessed on all residuals at the rate of 1.5% of the gross amount paid. If the residuals are processed by the Guild, they are automatically included in any dues assessment. However, if the Company erroneously sends the residuals directly to the writer, the gross amount should be reported by the writer on the appropriate dues declaration form. Additionally, the Residuals Department should be notified so that those payments can be entered into the Guild’s residuals database and the Guild can remind the Company that it is required to send the residuals payments to the Guild for processing.

For additional information, please contact the WGAE Dues Department at (212) 767-7824 or (212) 767-7815 or the WGAW Dues Department at (323) 782-4531.

Pension Plan & Health Fund Contributions on Residuals

The Company is obligated to contribute a percentage based on your “gross compensation” to the Pension Plan and the Health Fund. Although no contributions are due for residuals paid on made-for-theatrical projects, contributions may be due for residuals paid on made-for-television projects. Please note that contributions “cap out” at certain levels. If you have any additional questions, please contact Pension & Health at (818) 846-1015.

Monitoring Residuals

In order to determine whether residuals are due, the Guild must know whether a project has been reused, in which market, how often and, in some cases, for what license fee. The Guild researches potential residuals claims by subscribing to outside monitoring services and compiling the information internally. Nearly everything that airs on television, be it produced initially for free television, pay television, basic cable, or theatrical, is monitored using these services.

The information is categorized by television market, city, station, date, and time of airing. When the Guild discovers a potential claim, the system is used to research the claim and verify whether a payment is due. For additional information on potential claims, please contact the WGAE via email or call the WGAW at (323) 782-4700.

Processing Residuals

Once a residual becomes due, the Company (or payroll company it engages) sends your check to the Guild for processing. The Guild receives from 100 to more than 5,000 residuals checks a day.

When checks are received by the Guild, basic check information is entered into the Guild database and the check is mailed to you. When you receive your residuals check, make sure the address imprinted on the check is correct, as that is frequently the address to which the Company will send your year-end tax reporting forms. If the address is incorrect, contact the paying Company to update your information.

Checks are generally processed in the order in which they are received. The processors verify your name, social security number, writing credits, market paid, and dollar amount according to the provisions set forth in the applicable MBA. In addition to the information readily available in the Guild database, the processor may have to review specific provisions of your contract to verify the payment is correct. Once your check has been fully processed, you can view the payment detail through your on-line account at www.wga.org for WGAW members or www.wgaeast.org for WGAE members.¹

It is extremely important that the Guild’s Residuals Department always has the current address of writers and beneficiaries, since residuals can be paid many years after the initial exhibition of the project involved. Please contact the WGAE Membership Department at membership@wgaeast.org or the WGAW Membership Department at membership@wga.org to update your information.

¹ Currently, WGAE online Residuals lookup is only available to Current Active members.

Conclusion

The Guild hopes that this guide has answered most of the questions you may have regarding residuals. If you have any additional questions, please the Residuals Department via email or call the WGAW Residuals Department at (323) 782-4700.

This guide is not a substitute for the Minimum Basic Agreement. If there is any inconsistency between the Guide and the Minimum Basic Agreement, the Minimum Basic Agreement controls. If you have any questions regarding the application of these provisions or if you have a question as to the interpretation of the Minimum Basic Agreement, contact the Guild.