Does everyone in a movie get royalties?

Does everyone in a movie get royalties?

Understanding the truth about royalties, residuals, and who actually profits after the cameras stop rolling

(By Ray Reese)

(Photo: Le Minh | Pexels)

What Are Royalties and Residuals in Film?

When people hear the word “royalties,” they often assume every actor, crew member, and even extras are getting regular checks long after a movie has been released. In Hollywood, the term is more accurately called residuals, and they primarily benefit individuals in specific unions like SAG-AFTRA (Screen Actors Guild‐American Federation of Television and Radio Artists), WGA (Writers Guild of America), and DGA (Directors Guild of America).

Royalties or residuals are payments made to actors, writers, directors, and others when a film or TV show is rebroadcast, streamed, sold on DVD, or licensed to another platform. The system ensures that those involved in creating a project are compensated when the project continues to earn money.

“Residuals allow creatives to have financial continuity. Without them, the success of a film would only benefit the studio,” said Duncan Crabtree-Ireland, SAG-AFTRA’s National Executive Director.

However, the assumption that everyone on a film set gets these payments is far from the truth.

Among all participants in a movie production, actors in unions like SAG-AFTRA are some of the most common recipients of residuals. The size and frequency of these payments depend on the actor’s role, the film’s distribution method, and the contracts signed.

For instance, a lead actor in a blockbuster is likely to receive substantial residuals over time, especially if the movie airs on cable, is streamed on platforms like Netflix, or sells well internationally.

In an interview with Vulture, actor Rob Lowe discussed how “The West Wing” continued to pay him years later:

“I still get checks. Some are pennies. One time I got a residual check for $0.02. But others are a pleasant surprise.”

However, background actors and extras usually do not get residuals. Their contracts are typically for day work or flat fees, and unless they are upgraded to principal performers, residuals are not part of their compensation.

Yes—but only under certain conditions. Writers who are members of the WGA are entitled to residuals when their screenplays or scripts are reused. These payments are carefully calculated based on complex formulas involving domestic and international exhibition, digital streaming, and more.

For example, screenwriter Shane Black, who penned Lethal Weapon, once stated:

“Residuals were what kept me afloat during the dry periods. You might go years without another script sale, but those payments kept coming.”

Non-union writers, however, are usually not afforded this luxury. If a screenwriter works independently or on a “work-for-hire” basis without a WGA contract, they typically receive a one-time payment and nothing more.

Directors in the DGA (Directors Guild of America) do get residuals under union agreements. Like writers and actors, they receive ongoing payments based on a film’s performance across various media.

Director Steven Soderbergh, speaking on a podcast about his experience in the industry, explained:

“Residuals are a reward for your artistic contribution that continues to benefit the studio. It’s fair we share in the success.”

On the other hand, producers do not automatically receive residuals unless they also have another credited role (e.g., writer, actor, or director). Instead, producers often negotiate backend points, which is a percentage of profits or gross revenues. These deals can be extremely lucrative—George Lucas retained merchandising and sequel rights for Star Wars, earning billions.

This is where the misconception becomes most obvious: Most crew members do not receive royalties or residuals. This includes vital behind-the-scenes professionals such as cinematographers, costume designers, lighting technicians, makeup artists, and editors.

Their pay is often limited to negotiated hourly or day rates, plus overtime and possibly union benefits, but no ongoing earnings after the project ends.

In a Reddit AMA, a veteran grip shared:

“I worked on a hit show for three seasons. It still streams globally, but I don’t see a dime from it now. Once I clocked out on the last day, that was it.”

The only exception is if a crew member holds multiple titles and also contributed creatively in a union-recognized way (e.g., writing or producing). In such cases, they might qualify for royalties under that separate role.

Music composers and performers in movies also receive royalties—but again, it depends on union membership, licensing, and performance rights organizations like ASCAP, BMI, or SESAC.

Film composer Hans Zimmer, for instance, earns royalties every time one of his compositions is licensed or used. Musicians who perform on a score may receive payments for use in new formats, such as a streaming platform.

According to BMI:

“A composer’s earnings can be long-term through performance royalties, which come from public broadcasts, streaming, and even concert performances.”

However, like other crew members, musicians hired under work-for-hire arrangements or through flat-fee contracts may not receive any residual income.

Residual formulas differ based on the medium, platform, and release type. A theatrical release followed by cable airings, DVD sales, and streaming all have their own rate structures.

For example:

TV airings on basic cable might result in declining residuals over time

Streaming platforms pay residuals based on subscriber numbers and territory

DVD sales have fixed percentage-based royalties for union members

An example breakdown from SAG-AFTRA illustrates that a film broadcast on network TV might pay 100% of the minimum residual for the first repeat, 75% for the second, and so on.

Still, these rules are constantly evolving, particularly as streaming platforms shift the economic model of Hollywood.

There are some eye-opening cases of enormous royalty earnings that highlight the long-term value of residuals.

Jerry Seinfeld and Larry David reportedly continue to earn tens of millions per year in residuals from Seinfeld syndication and streaming deals.

Kunal Nayyar, who played Raj in The Big Bang Theory, confirmed he receives residuals:

“Every month, I get a reminder that people are still watching. It’s a blessing.”

Elvis Presley’s estate earns millions from film royalties, even decades after his passing, due to his music being used in countless productions.

But again, these examples are outliers—the majority of working professionals in the industry will never see that kind of return.

Streaming services like Netflix, Hulu, Amazon Prime, and Disney+ have become major players, and they do pay residuals—but differently than traditional media.

In fact, streaming residuals were at the heart of the 2023 SAG-AFTRA and WGA strikes, where creatives demanded more transparency and fairer payment structures.

According to SAG-AFTRA’s new agreements:

“For shows and films licensed to streamers, residuals are calculated based on the number of subscribers and the platform’s reach, not just per-view payment.”

Still, critics argue that these residuals are often lower than those from traditional broadcasts and that streaming platforms are opaque about viewing data, making it hard to verify fair compensation.

To summarize:

Yes, actors, writers, directors, and composers can receive royalties (residuals)—but only if they’re union members and contracts provide for it.

No, the average crew member or extra typically does not receive any ongoing payments.

Producers and investors may negotiate backend profits, but it’s not the same as royalties.

Streaming has changed the game, often resulting in smaller and less transparent payments.

Residuals remain a critical issue in the entertainment industry, highlighting the divide between those with union protection and contract leverage, and those who work behind the scenes without long-term financial recognition.

As actor Bryan Cranston said during a labor rally:

“We’re not asking for the moon. We just want a fair share of the success we help create.”

And that’s what royalties are all about.

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