Do All SAG Actors Get Residuals?
One of the key benefits for actors who are members of the Screen Actors Guild (SAG), now known as SAG-AFTRA, is the opportunity to earn residuals. Residuals are payments made to actors when the projects they work on are re-shown or re-distributed. However, not all SAG actors receive residuals, and understanding who qualifies and under what circumstances can be a bit more complex. Here’s a closer look at how residuals work for SAG actors.
What Are Residuals?
Residuals are payments made to actors when the content they appear in is reused, whether it’s a rerun of a TV show, a movie being sold to a streaming platform, or a commercial being aired multiple times. These payments are meant to compensate actors for the continued exposure of their work and the ongoing commercial value of the production.
For example, if an actor appears in a television show that is rerun, they receive residuals based on how many times the episode is aired. Similarly, if a film is sold to a streaming service or international markets, actors receive residuals according to the terms outlined in their contracts and the collective bargaining agreement between SAG-AFTRA and production companies.
Do All SAG Actors Get Residuals?
While residuals are a standard benefit for many SAG-AFTRA members, the answer to whether all actors receive them is not as simple as a “yes” or “no.” Several factors determine if an actor qualifies for residuals:
1. Type of Work
The type of work an actor does plays a significant role in whether they receive residuals. Here’s a breakdown:
- Television and Film: Actors who appear in TV shows, films, or theatrical productions are typically eligible for residuals. The residuals are paid when those productions are rerun, sold to streaming platforms, or sold to other networks.
- Commercials: For actors who work in commercials, residuals are often part of the deal, especially when a commercial airs multiple times or in various markets.
- Non-Scripted Content: Actors working on reality shows, game shows, or talk shows usually don’t receive residuals. These types of shows don’t generate the same kind of reuse revenue that scripted content does.
2. Contractual Agreements
Residuals are also governed by the terms of an actor’s contract. For some actors, especially those who are just starting out or taking on smaller roles, they might sign contracts that don’t include residual payments or have residuals set at lower rates. This can be more common in low-budget productions or independent films. For example, background actors (extras) may not receive residuals in the same way as lead actors do, depending on the terms of the production and union agreements.
3. Union Status
Residuals are typically guaranteed for members of SAG-AFTRA, but non-union actors do not automatically receive residuals. While non-union actors can work on union productions as “taft-hartley” workers (temporarily working under union rules), they will not be entitled to residuals unless they officially join the union. Non-union actors may still negotiate residual-like payments, but this is not standard practice.
4. Distribution Platforms
The rise of streaming services like Netflix, Hulu, and Amazon Prime has created a new layer of complexity in the residuals process. Under the SAG-AFTRA agreement, residuals are calculated based on revenue generated by content distribution. With streaming platforms paying flat rates to studios for licensing, residuals for actors can sometimes be lower than traditional reruns or DVD sales. For some actors, the way streaming companies distribute revenue doesn’t always translate into large residual payments.
5. Low-Budget and Indie Films
In some cases, low-budget films or independent productions may not be required to pay residuals under the terms of their contracts. Many independent films have different compensation structures, and while SAG-AFTRA has minimum rates, there may be limited funding for residual payments. Actors working in these projects may negotiate for a different set of terms.
How Are Residuals Calculated?
The method by which residuals are calculated depends on the type of content. For television, the residuals are based on the number of reruns or airings a show gets and the revenue generated from those airings. For film, residuals are often linked to the distribution of the movie across different formats (theatrical, DVD, digital, etc.).
The specific rates for residuals are determined by collective bargaining agreements between SAG-AFTRA and the production companies. These agreements are negotiated and updated periodically to account for changes in the industry and technology. For example, streaming services have been a major factor in reshaping how residuals are calculated.
Conclusion
While residuals are an important part of the compensation package for many SAG-AFTRA actors, not all actors automatically receive them. The type of work, the nature of the contract, the actor’s union status, and the distribution platform all play a role in determining whether or not residuals are earned.
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