| > I'd assume residuals are lower / non-existent on the much-bemoaned formulaic Netflix fodder movies? Hence why they keep getting stuffed in services. As I understand it, the residuals are for things beyond the original contract. So if you have a broadcast show, that gets paid out. Then it goes to syndication - residuals get paid. Then it goes to streaming - residuals get paid. However, with an in house production by a streaming service... from the Fortune link ( and http://web.archive.org/web/20231001022043/https://fortune.co... if you have trouble with the link) > So shows originally produced for broadcast television aren’t an issue. When “Friends,” which was originally an NBC sitcom, generates $1 billion dollars on streaming platforms, the five leads each earn 2%, or $20 million apiece. But a show like “Stranger Things” – produced and owned by Netflix – never goes to a secondary market as long as it is aired only on Netflix, so the stars earn only their original pay. > The problem, then, comes from the fact that the existing residual model, per the expiring SAG-AFTRA contract, doesn’t take streaming into account. > In the streaming era, all new shows produced by streaming platforms are concurrently reruns and original runs. Actors want 2% of streaming revenue generated by the show or film to replace this line of income. |