Do Actors Get Paid Every Time Their Movie Is on TV?

(By Daniel Suttice)

(Photo: Andrea Piacquadio | Pexels)

Have you ever wondered if actors continue to earn money every time one of their movies is aired on television? It’s a common question among fans and aspiring actors alike, especially when considering classic films and popular blockbusters that seem to rerun endlessly on various channels. The short answer is: yes, but not always, and it depends on several factors.

What Are Residuals?

The key term in this discussion is residuals. Residuals are payments made to actors, directors, writers, and other talent involved in a film or television production when the project is rebroadcast, resold, or reused after its initial release. Essentially, they are a form of royalty payment, compensating performers for the continued use of their work.

Residuals were first introduced in the mid-20th century, thanks largely to the efforts of unions like the Screen Actors Guild (SAG) and the Writers Guild of America (WGA). These unions negotiated contracts to ensure that creative professionals received fair compensation beyond their initial paycheck when their work was reused.

How Do Residuals Work?

When an actor signs on to a movie or TV project, their contract often includes terms for residual payments. The specifics of these payments depend on:

1. The actor’s role: Leading actors often have better-negotiated deals than supporting or background actors.

2. The production budget: Higher-budget productions may offer more generous residual terms.

3. Union rules: Union members typically have set minimums for residuals.

4. The platform: Whether the film is aired on broadcast TV, cable TV, streaming platforms, or sold as DVDs affects residual payments.

Residuals for Television Airings

When a movie is shown on TV—whether on a network channel, cable, or syndication—the production company usually pays residuals based on the revenue generated from licensing the movie to the network. The more times a movie is aired, the more residuals actors may receive, although the payments decrease over time.

The first time the movie airs post-release, the residual payment is usually the highest. Each subsequent airing results in a smaller percentage. After many years, residual payments may become quite minimal, but they still exist.

Residuals for Streaming and DVD Sales

In recent years, streaming services like Netflix, Hulu, and Amazon Prime have changed the residual landscape. Streaming platforms typically pay a flat fee for content, and residuals for streaming are calculated differently than those for traditional TV airings. While actors do receive residuals, they are often less predictable and may not generate as much income over time compared to network TV reruns.

Examples of Actors Earning Residuals

1. Friends Cast

Perhaps one of the most famous examples of lucrative residual deals involves the cast of Friends. The beloved sitcom, which ran from 1994 to 2004, continues to earn millions annually through reruns and streaming rights. According to reports, Jennifer Aniston, Courteney Cox, Lisa Kudrow, Matt LeBlanc, Matthew Perry, and David Schwimmer each receive an estimated $20 million a year in residuals from syndication and streaming deals.

This remarkable income is due to shrewd negotiations made toward the later seasons of the show, ensuring the six main actors earned not only high per-episode salaries but also a share of the back-end profits, which include syndication and DVD/streaming revenue.

2. Seinfeld Cast and Jerry Seinfeld

Similarly, Seinfeld, another iconic sitcom, has been highly profitable in syndication. Jerry Seinfeld and Larry David, the co-creators, reportedly earned upwards of $400 million each when the show was sold into syndication, and they continue to receive residuals.

However, the supporting cast (Jason Alexander, Julia Louis-Dreyfus, Michael Richards) reportedly negotiated standard residual deals and receive payments when the show airs, though far less than Seinfeld and David.

3. Star Wars Actors

Residuals can vary significantly depending on contract negotiations. For instance, actors in the original Star Wars trilogy, like Mark Hamill, Carrie Fisher, and Harrison Ford, did not initially receive substantial residual deals. George Lucas, the creator, retained most of the back-end rights himself, making billions. However, the actors’ contracts did include some residual terms, although far less lucrative compared to modern blockbuster actors.

Interestingly, Alec Guinness, who played Obi-Wan Kenobi, negotiated a unique deal—reportedly securing 2% of the gross royalties from the original film. This savvy move earned him tens of millions of dollars over the years, far exceeding his initial salary.

4. The Office Cast

Another case involves the American version of The Office. Cast members such as Steve Carell, Rainn Wilson, John Krasinski, and Jenna Fischer continue to receive residual payments for reruns and streaming rights, especially since the show remains popular on streaming platforms. However, because streaming residuals differ from broadcast TV, some actors have publicly discussed the desire for more fair residual structures in the age of digital media.

How Much Do Residuals Pay?

The amount actors receive from residuals varies based on:

• Union Agreements: For union productions, specific rates and structures exist.

• Type of Airing: Network TV, basic cable, premium cable, streaming, and international airings all have different payment tiers.

• Original Contract Negotiation: Some actors, especially big stars or producers, negotiate deals that include a percentage of profits, often leading to higher residuals.

Example Breakdown (Approximate Numbers)

Here’s a rough example for TV airings based on union minimums:

• First rerun on network TV: $1,000 to $5,000+

• Second rerun: About 60-70% of the first payment.

• Subsequent reruns: Payments continue to decline, potentially down to hundreds of dollars.

For streaming, residuals might be:

• Flat fee per year of licensing

• Smaller percentages for international streaming platforms

Do Background Actors Get Residuals?

Background actors (extras) typically do not receive residuals. Their contracts are usually “one-time” payments for the days they work. Residual payments primarily apply to principal actors, stunt performers, and creative professionals like directors and writers.

Do Movie Stars Always Get Residuals?

Not necessarily. Some movie contracts don’t include residual payments, especially if:

• The actor was paid a massive upfront salary.

• The film was produced outside of union jurisdiction.

• The production company negotiated buyouts.

For instance, some blockbuster actors may opt for large one-time paychecks, forfeiting residuals in exchange for immediate compensation. Others, however, negotiate “points” (a percentage of the film’s profits) in lieu of or in addition to residuals.

Example: Robert Downey Jr.

Robert Downey Jr. famously earned tens of millions not just from his base salary for playing Iron Man, but from back-end deals tied to box office performance and merchandise. Though residuals from TV airings aren’t the primary source of his wealth, his contracts ensured he benefited long after filming ended.

Streaming Platforms and the Changing Residual Landscape

With the rise of streaming platforms, residual payments have become a hot topic. Traditional TV syndication models are shrinking, meaning fewer consistent reruns on cable. Instead, content is licensed to services like Netflix, Disney+, or Amazon Prime.

Actors still receive residuals for streaming, but:

1. Payments are often lower and less frequent.

2. Streaming platforms don’t disclose viewership numbers publicly, making it harder to negotiate.

3. Contracts are evolving, with unions pushing for fairer streaming residuals.

In fact, a major component of the 2023 SAG-AFTRA and WGA strikes revolved around improving residuals and transparency in the streaming era.

Key Takeaways

• Actors do get paid residuals when movies or TV shows are re-aired on TV, but the amount decreases over time.

• The structure and amount of residuals depend on union rules, contract negotiations, production budgets, and the platform on which the content airs.

• Streaming services pay residuals, but these payments often differ from traditional TV airings, sparking industry debates.

• Some actors, like the Friends and Seinfeld cast, have famously benefited from lucrative residual deals.

• Background actors typically do not receive residuals, and some movie stars may forgo residuals for higher upfront pay.

In summary, while not all actors are guaranteed lifelong residual checks every time their movie plays on TV, many do benefit from this system, particularly union members and actors who’ve negotiated smart contracts. The entertainment industry continues to evolve, and residuals remain a crucial topic as streaming changes how we consume media—and how actors get compensated for it.

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