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Residuals Informational Meeting
Los Angeles March 24, 2016
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What Are Residuals?
Additional Compensation forDistribution and Exhibition beyond that covered
by Original Compensation
Original Compensation
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Two Types of Residuals
Fixed /Run Based
Revenue/Gross Receipts
Based
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Fixed (Run Based) Residuals – TV Agreements
• Triggered by reruns in network prime time• Due 30 days after each rerun
Network Prime Time Residuals
• Triggered by reruns in syndication (and in basic cable if the program is made-for-basic cable) and network non-prime time
• Due 4 months after each rerun
Network and Syndication Residuals
• Triggered by first exhibition on free television (broadcast or basic cable or streaming) outside of the U.S.A. and Canada
• Due 30 days after initial air date
Foreign Free TV Residuals
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Fixed Residuals – TV Agreements
• Triggered by theatrical exhibition of a television or made for new media picture
Theatrical Residuals
• Triggered by free streaming within 1 year of initial exhibition on television and outside of any free streaming window
Free Internet Streaming Residuals
• Triggered by exhibition on the original SVOD platform in excess of 1 year
Made for HBSVOD Residuals
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How Does That Math Work?Example:
Day Rate = $938 Weekly Rate = $3255___________________________________________
8pm rerun on CBS of “My New Favorite ½ Hour”Residuals = $938 Residuals = $2527
(TAC) (Prime Time Ceiling)___________________________________________
7pm rerun on a Local Channel after the CBS rerunResiduals = $281.40 Residuals = $976.50
(Run 2 at 30% of TAM)
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Gross Receipts Based Residuals –TV and Theatrical
Agreements
• Based on a percentage of Distributor’s gross receipts.
• Performers share in the residuals pool based on pro rata share.
4th Quarter: October 1 – December 31
Due to SAG-AFTRA by March 1 Processed and mailed between March 1 – April 30
3rd Quarter: July 1 – September 30Due to SAG-AFTRA by
November 30Processed and mailed between
December 1 - January 31
2nd Quarter: April 1 – June 30Due to SAG-AFTRA by August
31Processed and mailed between
September 1 - October 31
1st Quarter: January 1 – March 31
Due to SAG-AFTRA by May 31 Processed and mailed between June 1 - July 31
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How Does That Math Work?
Example:Day Performer = .4 units Weekly = 2 units
Total units for Theatrical picture = 750 unitsLicenses to Pay TV for $5 million
___________________________________________
Residuals formula: $5 million x 3.6% = $180,000___________________________________________
Day Performer Weekly Performer$240 x .4 = $96 $240 x 2 = $480
(Gross residuals amounts including P&H contribution)
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Theatrical Exhibition
Network Exhibition, e.g. NBC,
ABC, CBS, FOX
Syndication Exhibition,
e.g. CW, local
broadcasts
Foreign Free TV Exhibition,
outside the U.S./Canada
e.g. broadcast, basic cable,
free streaming
Home Video
Exhibition, e.g. VHS, DVD, Blu Ray, etc.
Pay TV Exhibition,
e.g. Showtime, HBO, VOD,
etc.
Basic Cable
Exhibition, e.g. TNT, F/X, Syfy,
etc.
Internet Streaming Exhibition
, e.g. Hulu,
YouTube, AVOD,
etc.
Internet Rental
Exhibition, e.g.
Netflix, Amazon Prime,
etc.
Electronic Sell-Thru Exhibition
, e.g. iTunes,
etc.
Made for Theatrical
No residuals
Gross Receipts
Gross Receipts
Gross ReceiptsGross
ReceiptsGross
ReceiptsGross
ReceiptsGross
ReceiptsGross
ReceiptsGross
ReceiptsMade for Network,
Syndication, Foreign TV, Pay TV, or
Home Video
FixedFixed (Run
Based)
Fixed (Run Based) and
Gross Receipts
Fixed and Gross Receipts
Gross Receipts
Gross Receipts
Gross Receipts
Fixed and Gross
Receipts
Gross Receipts
Gross Receipts
Made for Basic Cable Fixed
Fixed (Run Based)
Fixed (Run Based) and
Gross Receipts
Fixed and Gross Receipts
Gross Receipts
Gross Receipts
Fixed (Run Based) and
Gross Receipts
Fixed and Gross
Receipts
Gross Receipts
Gross Receipts
Original and Derivative
high budget made for
Subscription Internet
FixedFixed (Run
Based)Fixed (Run
Based)Fixed and
Gross ReceiptsGross
ReceiptsGross
ReceiptsGross
ReceiptsGross
Receipts
Fixed and Gross
Receipts
Gross Receipts
Original (low budget) made
for InternetFixed
Fixed (Run Based)
Fixed (Run Based)
Fixed and Gross Receipts
Gross Receipts
Gross Receipts
Gross Receipts
Gross Receipts(if residuals are triggered)
Derivative (low budget)
made for Internet
FixedFixed (Run
Based)Fixed (Run
Based)Fixed and
Gross ReceiptsGross
ReceiptsGross
ReceiptsGross
Receipts
Fixed and Gross
Receipts
Gross Receipts
Gross Receipts
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Why Do We Process Residuals?
A collective bargaining mandate since the 1950s
• Performers are Paid Properly
• Clear Records for Contract Enforcement
• Unique Data on Member Earnings and Industry Trends
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Why Do We Process Residuals?
• Helps Ensure Performers Receive Residuals From Multiple Employers– Current addresses on file with SAG-AFTRA
– Studios do not maintain current contact and address information over time
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Why Do We Process Residuals?
• Consistent Payment Information to You via SAG-AFTRA Statements
• Member Residuals Earnings History-Performers can view residuals payments online at the SAG-AFTRA Residuals Tracker
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How Do We Process Residuals?This is an easy process, right?
Checks In
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Here’s the Reality
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How Do We Process Residuals?Step 1
Delivery
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How Do We Process Residuals?
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How Do We Process Residuals?Batched and Organized
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How Do We Process Residuals?
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How Do We Process Residuals?
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How Do We Process Residuals?
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How Do We Process Residuals?
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Information Online
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How Do We Process Residuals?
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How Do We Process Residuals?
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How Do We Process Residuals?
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Volume & Complexity
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Studio Provided Payment Report
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Payments
0
1,000,000
2,000,000
3,000,000
4,000,000
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
# of Residual Checks Processed
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Keys to ReceivingYour Residuals
• Keep your address current!
• Keep your address current!
• Keep your address current!
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Thank you!
Questions?
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Residuals Information
TV/Theatrical/New Media Residuals
Los Angeles: 323-549-6505