Finance
Residuals
Definition
Ongoing payments made to actors, writers, and directors when a film or TV show is reused or rebroadcast. Residuals are governed by guild agreements (SAG-AFTRA, WGA, DGA) and are triggered when content streams on platforms, airs on TV, or is sold to secondary markets. Filmmakers must budget for residuals when planning distribution.
Example
If your film stars a SAG-AFTRA actor and streams on Netflix, the actor may be entitled to residual payments based on the number of subscribers who have access to the film.
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