Residuals are financial compensations that are paid to the actors, film or television directors, and others involved in making TV shows and movies in cases of the cable reruns, syndication, DVD release, or licensing to streaming media.
The basic pay structure was developed in 1960, the last time writers and actors were on strike together. Traditionally, actors and writers are paid for each time a show runs on broadcast or cable television, or when someone buys a DVD, a Blu-ray disc or (long ago) a VHS tape.
An actor can expect a residual check once a show or movie re-airs on cable or a streaming service, or sells via DVD or VOD. For streamers like Max and Disney+, initial compensation covers the first 90 days a show or film is aired.
As a rules most actors do not make royalties. They get residuals and in some rare instances profit participation or “points” or a percentage of the film's net or gross. Residuals are a part of the union agreement.
It has become increasingly popular in Hollywood for stars to get back-end points, which means they earn a percentage of the movie's box office gross, and that has led to some astronomical salaries of over $100 million for a single film. Here are the four actors who've managed that feat.
Matt Damon explains how the lack of DVD sales changed what movies studios will greenlight
Who gets the money from movie sales?
Studio and Theater
Arrangements differ. However, the movie studio usually gets 60% of the proceeds from American box offices or anywhere from 20% – 40% overseas. This depends on the film distribution arrangements, agreements, and other costs associated with foreign distribution. Theaters receive the remaining 40%.
As of August 2023, Samuel L. Jackson was the highest-grossing leading actor in the United States and Canada, which combined are known as the North American movie market.
How much money do movies usually make off of BluRay/DVD/Soundtrack sales ? It depends on the region. For every $100m in ticket sales, studios expect to make from TV rights, DVD sales, and digital downloads, over a ten year period: North America: $175m.
In 2019, US video disc sales reached $3.29 billion but dropped 19% in 2021 to $1.97 billion. DVDs still conquer the market within those sales, and at their peak, DVD sales were over $18 billion, while Blu-Rays made just over $2 billion in a year.
How much are used DVDs worth? Most used DVDs sell from $2 to $20, and on average for $5. But box sets and collections will be more expensive. Resale sites offer $0.50 - $2.00 per DVD on average.
It looks like residuals can be paid indefinitely, provided the movie or TV show continues to make money. I'm sure the Warden from Shawshank has made a lot of money over the years from those residual payments! At one point, they stopped showing Cosby's show on TV and other actors on the show stopped getting residuals.
Maybe. Most television actors don't live like royalty off their royalties — but some make a decent living. Royalties are referred to as "residuals" in the television world.
One of the key issues in the SAG-AFTRA strike is the payments to actors from streaming services. As it stands right now, actors are not getting residuals from their work being exhibited on streaming services like when their show is on linear platforms.
“Royalties are a separate agreement between production companies and actors, directors, producers and writers." In other words, residuals are part of collective bargaining by industry unions while royalties are negotiated for on a deal-by-deal basis.
Let's delve into the various ways actors earn money during their downtime. 1. Residuals and Royalties: Actors receive residuals and royalties when their work is aired or distributed beyond its initial release.
Nowadays, just over one-half of all U.S. homes have a DVD or Blu-ray player (and VCRs are not being manufactured.) The sales of physical discs have been declining in recent years as streaming services like Disney's Hulu and Disney+ gain in popularity.
Curiously, many stores fill their shelves with DVDs and Blu-rays, and Technicolor Home Entertainment Services plans to ship as many as 750 million discs in 2022. Stranger yet, the most prominent DVD watchers are 25 to 39.
It is not hard to understand why distributors are turning away from physical products. According to CNBC, between 2006 – a year after they peaked – and 2019 US DVD sales declined by 86%.
Action movies grossed $149 billion from 2010 to 2020, while adventure movies earned $164 billion in the same time span. The two genres combined earned over $300 billion between 2010 and 2020.
Jerry Seinfeld is an American actor, comedian, and producer. He is popular for starring in the popular sitcom "Seinfeld,” in which he played a fictionalized version of himself. Seinfeld, the sitcom, is one of the most profitable shows on the small screen. With a net worth of $1 bn, he is the richest actor in the world.
