Do Netflix Actors Get Residuals?
(By Ray Reese)
(Photo: Cottonbro Studio | Pexels)
As the world of television and film continues to evolve, streaming platforms such as Netflix have reshaped how audiences consume content. With an ever-expanding catalog of original series and films, Netflix has become a dominant force in the entertainment industry. However, this new era of streaming has raised several questions about compensation for actors, particularly when it comes to residuals—payments that performers receive whenever a show or film is rebroadcast or repurposed.
For actors who appear in Netflix originals, the issue of residuals is a complicated one. Unlike traditional television networks, which have well-established systems for reruns and syndication, Netflix operates under a different financial model. This article will explore whether Netflix actors receive residuals, how Netflix’s business model affects residual payments, and provide examples of how residuals are handled for actors in the streaming age.
What Are Residuals?
Before delving into how residuals work for Netflix actors, it’s important to understand what residuals are and how they have traditionally functioned in the entertainment industry. Residuals are payments made to actors, writers, directors, and other creatives whenever a show, film, or commercial is reused. These payments are made every time a production is rebroadcast, syndicated, or made available on different platforms. The purpose of residuals is to compensate performers for the continued commercial success of their work beyond the initial airing or release.
For example, an actor might receive residuals each time a television show they starred in is rerun on a network, or when a movie is released on DVD or available for streaming. The amount of the residual is typically based on the number of times the work is shown and the platform or medium through which it is distributed. In traditional television, residuals are paid for reruns on other networks, syndication, and DVD sales, but with the rise of streaming services, the landscape has shifted.
How Does Netflix Work?
Netflix has completely disrupted the entertainment industry with its subscription-based model. Unlike traditional TV networks, which rely on advertising revenue and syndication, Netflix charges users a monthly fee to access a vast library of content. Subscribers can watch original series, films, and documentaries whenever they choose, with no need to wait for a specific time slot or for reruns. Because Netflix content is released in its entirety all at once, binge-watching has become the norm.
Netflix has produced thousands of original titles, including award-winning shows like Stranger Things, The Crown, and House of Cards. As the platform continues to grow, many actors find themselves cast in Netflix originals. However, one of the key differences between Netflix and traditional television networks is how the company handles residual payments.
Do Netflix Actors Get Residuals?
The short answer is that Netflix actors do not receive residuals in the traditional sense. Unlike actors working on traditional TV shows, who often get paid residuals for each rerun or rebroadcast of a show, Netflix has a different structure for compensating its actors.
While Netflix has a commitment to paying its actors well upfront, there is little or no residual payment for actors in most cases. The company’s model is built around paying actors a lump sum for their work, which is negotiated as part of the actor’s contract for a given series or film. This flat fee typically covers the entire production, and actors are not paid additional residuals as the show or movie continues to generate revenue through views or distribution.
This is a stark contrast to the model used in traditional television, where actors receive payments based on the number of times a show is rerun or syndicated. Netflix’s approach to compensation reflects the company’s unique distribution strategy, where content is released in full and available for streaming worldwide, potentially without the traditional reruns or syndication that would trigger residual payments.
The Union Perspective
The issue of residuals for Netflix actors is a point of contention for unions representing actors, such as the Screen Actors Guild‐American Federation of Television and Radio Artists (SAG-AFTRA). These unions advocate for fair compensation for actors, particularly when it comes to the use of their work over time. They argue that actors should be entitled to residuals in recognition of their contributions to a work’s success, especially when the content continues to generate revenue.
However, Netflix has been resistant to this model. In the early years of Netflix’s rise, it often operated outside of the traditional entertainment industry’s established residual structures. The company’s business model, which focuses on subscription-based streaming rather than advertising revenue or reruns, means that residuals are not a part of its financial ecosystem. While the platform may pay actors well upfront, it does not offer the same ongoing compensation that actors might receive from traditional broadcast networks.
In 2017, SAG-AFTRA and Netflix entered into a new contract that addressed some of the concerns regarding residuals, but it still did not include traditional residuals as seen in network television. Instead, the agreement included a flat fee system for actors working on Netflix original productions, with payments based on the length of the actor’s involvement in the production, the production budget, and other negotiated factors.
Examples of Netflix Compensation
While Netflix does not provide traditional residuals, actors involved in Netflix original productions do receive a large upfront payment. This payment is typically negotiated as part of the actor’s contract, and it can vary widely depending on the project. For major stars in high-budget series, the upfront payment can be substantial. However, once the production is completed, there is little or no additional payment, even if the series continues to perform well and generate significant revenue for Netflix.
1. Stranger Things
One of the most popular Netflix original series is Stranger Things. The show, which has become a cultural phenomenon, has turned its young cast members into household names. The actors, including Millie Bobby Brown (Eleven), Finn Wolfhard (Mike), and Gaten Matarazzo (Dustin), reportedly earn impressive upfront fees for their roles on the show. However, despite the show’s massive success and global popularity, these actors do not receive residuals for the numerous views and continued interest in the show.
Instead, the cast of Stranger Things is paid an upfront fee for each season. For example, it was reported that Millie Bobby Brown earned between $250,000 and $350,000 per episode in the later seasons of the show. While this upfront payment is substantial, it contrasts with the residuals structure seen in traditional TV, where actors continue to receive payments over time as a show is rerun.
2. The Crown
Another hit Netflix original, The Crown, has featured a high-profile cast including Claire Foy, Olivia Colman, and Helena Bonham Carter. The actors in The Crown also receive significant upfront payments for their roles in the historical drama, but, like other Netflix productions, they do not receive residuals based on the number of views the show receives.
Despite the show’s critical acclaim and its extensive catalog of viewers, the stars of The Crown are compensated through negotiated upfront fees, rather than through any ongoing payments. While the high upfront pay compensates the actors for their work, it does not offer the long-term benefits that residuals from reruns or syndication would offer on traditional networks.
3. House of Cards
House of Cards was one of Netflix’s earliest original successes. Kevin Spacey and Robin Wright, both leading the cast, were reportedly paid significant sums for their roles on the series. While these actors earned substantial upfront fees, they did not receive the same kind of residual payments that would be typical for actors in a network series.
In fact, Netflix has often emphasized the upfront nature of its contracts to its stars. Unlike traditional TV, where residuals are tied to repeated broadcasts, Netflix’s all-at-once release model removes the need for these types of payments. Instead, the success of the series is often rewarded in the form of large initial paychecks for the actors involved.
The Future of Residuals for Netflix Actors
As Netflix continues to grow and reshape the entertainment landscape, the issue of residuals for actors may evolve. Some have argued that as streaming services become the dominant form of content distribution, the compensation model for actors will have to adjust to ensure fair payment for work that continues to generate revenue over time.
There has been some movement in this direction, as Netflix and other streaming platforms have begun negotiating with unions like SAG-AFTRA to ensure that performers are fairly compensated. However, the current structure remains different from traditional television networks, and it is unclear how the landscape will change in the future.
Do Netflix actors get residuals? The answer is no, not in the traditional sense. While Netflix compensates its actors well upfront, there are no ongoing residuals for most performers involved in Netflix originals. Instead, actors are paid a lump sum for their work, with little or no additional payment if the show or movie continues to perform well on the platform. While this model is different from traditional television, it reflects the unique nature of streaming services like Netflix. The issue of residuals for actors in the streaming age remains a complex and evolving issue, one that will likely continue to be debated as the entertainment industry continues to shift.
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