Residuals

Here’s a Friday Question that became an entire post.  It was asked originally by Daniel with a whole bunch of you following-up saying you wanted to know too.  So here you go.  

Daniel’s FQ:

Since you mentioned residuals in your post today, could you explain how they work?

Do you get a monthly check? Quarterly check? Annual check?

There’s no simple answer except maybe “Yes.”   Writers receive residuals based on different formulas depending on whether their shows were re-aired on first run networks, local syndication, cable networks, DVD sales, and streaming.   When in syndication, the amount may vary based on the financial arrangements of the deal.   If FRIENDS sells in syndication for a huge number, writers will receive more than if they wrote for RULES OF ENGAGEMENT which sold for much less.  

Residuals are on a sliding scale.  Especially in first run network reruns you make less each time it airs.  

The good news is that since 1976 or 1977, residuals are in perpetuity.  Prior to that you got ten airings and were done.   Same with actors.  Ed Asner no longer gets residuals on THE MARY TYLER MOORE SHOW.  And residuals didn’t even come into play until 1960.  Vivian Vance & William Frawley made no residuals on I LOVE LUCY.  

Interesting side note:  Audrey Meadows, in negotiating her deal with THE HONEYMOONERS in the '50s proposed taking less money but getting a residual.  She wound up making millions, probably more than Jackie Gleason.   I love that story.

I have no idea what the formula is for DVD sales or streaming but it sure ain’t much.  Or additional platforms.  Example:  One of the episodes of EVERYBODY LOVES RAYMOND I directed was part of American Airlines in-flight programming packaging for six months.  It was shown on every East to West Coast flight for half a year.  So thousands of airings.  I received a check from American Airlines for $1.19.  That doesn’t buy a packet of their crappy salted peanuts.  

How do we receive residuals?  Studios are expected to send the checks to the WGA who then distribute them to us.  The WGA is tasked with policing this, but who are we kidding?   For all the residuals I’ve received I’m sure there’s a lot of money I’ve been cheated out of.  If you know specifically what you’re entitled to but haven’t received yet you can ask the WGA to investigate.  And that has proven to be successful.  

For years my partner and I never got residuals from the TV airings of VOLUNTEERS.  I called them, pointed out how it had run twice on ABC, hundreds of times on HBO, and been seen in syndication on independent over-the-air stations and cable networks.   A month later I got a five-figure check.  Had I not raised the issue I never would have received that money.  

Today writers can go to a website and monitor their own residuals so it makes it easier to keep track of what you’re entitled to.  

You must have writing credit on an episode to receive residuals.  Showrunners and producers don’t receive any royalties.  And if a showrunner or other staff members rewrite your script they have to send the final draft to arbitration.  The arbiters will then decide the credit.  

I should also point out that agents and managers are not entitled to commission residuals.  

Usually we’ll receive a check for multiple episodes (if we’ve written multiple episodes).  So I may get a check that includes recent residuals for seven CHEERS episodes or nine MASH episodes.  They come sporadically.  

I’ve received checks for as low as one cent.  

People ask if I can live off the residuals.  No.  Certainly not now.  Each MASH episode has aired probably a thousand times so I’m getting just a few bucks an airing now.  But still, that’s money I’m making for something I did 40 years ago.  How amazing is that???  

But residuals have been a big part of a writer’s income for the last sixty years.  Especially in an industry where there’s very little security — you go from assignment to assignment and show to show — residuals can get you through some pretty hard times.  

Now however, with everything changing and streaming clearly becoming the wave of the future I worry that writers won’t enjoy the same protection we did.  There are formulas in place, but I hope in upcoming negotiations we can secure a more equitable share.  And then actually see the money.  

That’s a very brief overview.  Someone could probably write an entire book on the residual structure, but book royalties are terrible.

from By Ken Levine