Residuals Survival Guide

Writers who worked under a Guild-covered contract and are credited on a project with the credit type listed below receive residuals when the project is reused. Regardless of how much you are paid or what you contribute to the final shooting script on a project, you only receive residuals if you receive final writing credit.

For theatrical projects:

• Written by (100%)
• Story by (25%)
• Screen Story by (25%)
• Screenplay by (100% if no Story by/Screen Story by credit is accorded, 75% if Story by/Screen Story by credit is accorded)
• Adaptation by (10%)

For dramatic television and new media projects:

• Written by (100%)
• Story by (25%)
• Television Story by (25%)
• Teleplay by (75%)
• Adaptation by (10%)
• Created by (see Creator Payments)

You’ll read more about “fixed” residuals and “revenue-based” residuals in this guide, but in a nutshell, the difference is a fixed residual is based on a fixed, set, dollar amount whereas a revenue-based residual is based on the Company’s accountable receipts. These “receipts” received by the Companies vary widely and are not set by the Guild. 

The percentages reflected above next to each type of writing credit represent the percentage of the residual you’ll receive on residuals that are revenue-based.

For non-dramatic programs (e.g. comedy/variety, serials, and quiz/audience participation shows), the types of credit that receive residuals are:

• Written by
• Writers
• Special material
• Sketch Written by
• Writing Supervised by
• Head Writer

Due to the complexity and variation of credit on non-dramatic programs, please contact the Guild if you have questions as to how revenue-based residuals are split on non-dramatic programs.

A note about “fixed” residuals. You’ll see many references throughout this guide to the “Residuals Base” or “applicable minimum” on fixed residuals. The residual base/applicable minimum is the fixed amount on which your residual is calculated and is determined by the date of your contract and the length of the project. The residuals base/applicable minimum is not the same as your initial compensation minimum. Later in this guide you’ll find references to the Residual Bases and Applicable Minimums for projects written under the 2023 MBA.

The remainder of this guide is broken into sections based on the project’s “made-for” market. Each section will cover the various residual formulas for that made-for market. There is a myriad of residuals formulas—hence the need for this Guide—and they are all determined by the project’s initial “made-for” market, e.g. made-for-free television, made-for-basic cable, made-for-HBSVOD, etc. combined with the reuse market. Although there are a variety of formulas which can be very different from one another based on the made-for-market, you’ll also find that there is some crossover in formulas between markets.

Beginning with the 2020 MBA, a new provision called “Platform Switch” or “Medium Switch” was added where a program’s made-for market is determined by the platform on which the program was initially exhibited. The provision only applies to television and SVOD platforms and not theatrical. For example, you could have been hired to write a 1-hour episode of It’s Always Sunny in Philadelphia for the FX basic cable channel, but if that episode had its initial exhibition on Hulu instead then, for residuals purposes, that episode would be considered made-for-HBSVOD.

Residuals for the following reuse or exhibition markets will be outlined in greater detail throughout this guide. The descriptions below are general so if you have additional questions on these markets, please contact us.

1. Theatrical: Released in theaters.
2. Free Television: Television channels you can watch for free (with an antenna) without the need for a subscription. Current examples include ION Television and the CW.
3. Network Television: Refers only to four free television networks: ABC, CBS, NBC, and FOX.
4. Diginet: A Diginet is a secondary digital subchannel, available to watch for free over-the-air with an antenna. Current examples include Bounce TV, Laff, This TV, and Grit.
5. Basic Cable: Television channel package offered by cable tv providers for a flat cable package subscription fee. Current examples of basic cable channels are TBS, TNT, Lifetime, and A&E.
6. Pay Television: Subscription based premium cable channels for which a subscription fee is paid per channel. Current examples are Showtime, HBO, and Starz.
7. Home Video/DVD: Physical media like VHS tapes, DVD, and Blu-ray discs.
8. Subscription Video On Demand (SVOD): includes subscription services like Netflix and Disney+; also includes limited downloads where the user pays a fee to temporarily access the project for a limited period.
9. Electronic Sell Through (EST): also known as “download to own,” refers to the digital purchase of a project where the user pays a one-time fee to permanently download the project. 
10. Ad-Supported Video On Demand (AVOD): refers to online streaming of content a user can access for free, but with advertising. Examples include Tubi and Pluto TV. 

All residuals for made-for-theatrical projects are revenue-based. This means the residuals due are based on the revenues (also referred to as “receipts” or “accountable receipts”) received by the Company. Accountable receipts are the total gross receipts, for instance license fees, derived by the distributor for the licensing of the projects to the various reuse markets.

With a revenue-based residual, the payment will vary depending on how much the Company receives and when it is received.

Reuse in Other Markets

Please note that there are no residuals due for exhibition in the theatrical market for projects made-for-theatrical. Initial compensation covers all theatrical use which includes inflight and cruise ships. Residuals are due when the project is reused in a market other than theatrical as follows:

Reuse Market

• SVOD: The residual is 1.2% of accountable receipts.
• AVOD: The residual is 1.2% of accountable receipts.
• Basic Cable: The residual is 1.2% of accountable receipts.
• Free TV: The residual is 1.2% of accountable receipts.
• Pay TV: The residual is 1.2% of accountable receipts.
• DVD: The residual is 1.5% of accountable receipts up to the first $1M in receipts and 1.8% thereafter.
• EST: The residual is 20% of 1.8% of accountable receipts for the first 50K units sold and 20% of 3.25% thereafter.

Due Date

Residual payment for this reuse is due 60 days after the end of the quarter in which the accountable receipts are received. For example, let’s say your film was licensed to Netflix (SVOD) for $1M and, per the license agreement between the Company and Netflix, the $1M license fee is to be paid in installments over the course of 5 years. Therefore, when the Company makes the residual payments for the reuse, they will be paying on the installment they received that quarter, and not on the full $1M license fee all at once. If they received $50,000 of the $1M license fee as an installment in Q4 2025, then they’d make residual payment of $600 ($50,000 x 1.2% = $600) and the due date would be March 1, 2026, which is 60 days after the end of Q4 2025. 

If residuals are paid late, Companies are required to pay interest at a rate of 1.5% per month accruing from the date of delinquency until the Guild receives payment in full. 

Script Publication Fee (SPF)

In addition to the aforementioned residuals, a Script Publication Fee (“SPF”) is also due. The SPF is a one-time payment that is not a residual, but is paid through the Guild’s Residuals Department. The SPF gives the Company the right to publish the script on DVD and online and is due regardless of whether the Company elects to exercise such right. Payment is due no later than 30 days after the Guild determines the final writing credits. For projects contracted May 2, 2020 and later, the amount due is $12,500. For projects contracted between May 1, 2014 and May 1, 2020, the amount is $10,000.

Examples

In September 2025, Sony licenses a film to HBO for a license fee of $4,000,000. Pursuant to the payment schedule Sony negotiated with HBO, Sony will receive the license fee in three installments of $1.33M each. Sony receives the first payment in October 2025. A residual payment of $16,800, 1.2% of the installment received, is due within 60 days after the end of the quarter in which Sony received payment. Since the quarter ends on December 31, 2025, payment is due on or before March 1, 2026. Future residual payments of 1.2% of the remaining installments are due within 60 days of the end of the quarter in which Sony receives payment.

In January 2025, Lionsgate licensed a film to Netflix for a license fee of $2,500,000. Lionsgate received the license fee in full from Netflix in February 2025. An SVOD residual payment in the amount of $30,000, which is 1.2% of $2,500,000, is due no later than June 1, 2025 because the accountable receipts were received by Lionsgate in quarter ending on March 31, 2025.

There are two main categories of made-for-free television projects: network and syndication. “Network” means the project is made for one of the four networks, Fox, ABC, CBS, or NBC. “Syndication” means the project is made for free television, but is not made for one of the four networks. The CW falls under the syndication umbrella. 

Network

Under the network umbrella, there are two types of network programs, those made for network prime time and those made for network non-prime time. Prime time is 8 p.m.-11 p.m. Monday through Saturday and 7 p.m.-11 p.m. on Sundays. Non-prime time is any time outside these windows. Whether the program is made for network prime time or non-prime time, initial compensation covers the first airing on network. Residual payment is triggered once the project has its second run.

In addition to the network prime time and network non-prime time designations, whether the project is dramatic or non-dramatic is also a factor in determining the residual formula. 

Network Prime Time (dramatic): The residual for reruns of a made-for-network project in prime time is 100% of the residual base (see the 2023 Schedule of Minimums, page 29). This is true for every rerun on network. Whether it is the second run or the sixth run, it is always 100% of the residual base. Residual payment is due 30 days from the date of the rerun. For example, if you were contracted on June 1, 2025 for a half-hour episode of The Simpsons and it reran on FOX, your residual would be $13,781.

The one exception to the network prime time residuals rule of being paid for every rerun is the so-called “promotional launch” provision. This provision is only applicable to the first season of a series. It allows for three episodes chosen by the Company to be run a second time without triggering a residual, provided that the second run occurs within a two-month period following the initial exhibition of the episode. Further, this exception can only apply to a maximum of 25% of the total number of episodes ordered. For example, if only eight episodes are ordered, then no more than two of the episodes can be chosen for the promotional launch provision.

Network Non-Prime Time (dramatic): The residual for reruns of a made-for-network project rerunning on network in non-prime time is a declining percentage of the residual base (see the 2023 Schedule of Minimums, page 29-30) per run.

Run	Percentage
2	50%
3	40%
4 through 6	25% each
7 through 10	15% each
11, 12	10% each
13 and beyond	5% each

Network Prime Time and Network Non-Prime Time (non-dramatic): As mentioned earlier in this guide, the residuals calculations on non-dramatic programs are complex and not as straightforward as dramatic programs, so please contact the Guild at Residuals or (323) 782-4700 for additional information. 

Due Date

For any network reuse, whether prime time or non-prime time or dramatic or non-dramatic, residual payment is due 30 days after the air date. 

If residuals are paid late, Companies are required to pay interest at a rate of 1.5% per month accruing from the date of delinquency until the Guild receives payment in full. 

Reuse in Other Markets

In addition to the fixed, run-based residuals due for reuse of free television programs on network television, residuals are also due when these projects are reused in a market other than network as follows:

Reuse Market

• SVOD: The residual is 1.2% of accountable receipts.
• AVOD: The residual is 5.5% of residual base for each of two 26-week periods, then 2% of accountable receipts. 
• Basic Cable: The residual is 1.2% of accountable receipts.
• Syndication: The residual is 2% of accountable receipts
• Diginet: The residual is 2% of accountable receipts provided that the project is out of production. 
• Pay TV: The residual is 1.2% of accountable receipts.
• DVD: The residual is 1.5% of accountable receipts up to the first $1M in receipts and 1.8% thereafter.
• EST: The residual is 20% of 1.8% of accountable receipts for the first 100K units sold and 20% of 3.5% thereafter.
• Foreign Free TV: The residual is an initial payment of up to 35% of the applicable minimum. It can be paid all at once or paid in three installments of 15%, 10%, and 10% with each installment being triggered by the foreign distributor’s gross exceeding certain thresholds. See the thresholds in the 2023 Schedule of Minimums, page 31. After the 35% initial payment has been paid, a residual of 1.2% of distributor’s foreign gross is due if the program exceeds another threshold. These thresholds vary depending on length (see the 2023 Schedule of Minimums, page 31).
• Theatrical: For limited theatrical exhibitions of up to eight days with an admission charge, the residual is 3% of the Company’s accountable receipts are due if the exhibition takes place at least 24 hours after the episode’s initial telecast or 30 days if a MOW. Otherwise, the residual is up to 150% of the television residual base or 100% of the theatrical minimum depending on the scope of release. For limited theatrical exhibitions of a 30 or 60-minute episode of up to six days with an admission charge, the residual is 3% of Company’s accountable receipts if the exhibition takes place no more than 30 days in advance of or simultaneous with its exhibition on television. The episode, including the pilot, must be part of a series order of at least 6 episodes. Otherwise, the residual is up to 150% of the television residual base or 100% of the theatrical minimum depending on the scope of release are due.

Due Dates for Revenue-Based Residuals

Residual payment is due 60 days after the end of the quarter in which the accountable receipts are received. For example, let’s say your episode was licensed to Peacock (SVOD) for $1M and, per the license agreement between the Company and Peacock, the $1M license fee is to be paid in installments over the course of 5 years.  When the Company remits the residual payments, they will be remitting payment only on the installment payment they received that quarter, and not on the full $1M license fee all at once. If they received $50,000 of the $1M license fee as an installment in Q4 2025, then they’d remit a residual payment of $600 ($50,000 x 1.2% = $600) and the due date would be March 1, 2026 as that is 60 days after the end of Q4 2025. 

If residuals are paid late, Companies are required to pay interest at a rate of 1.5% per month accruing from the date of delinquency until the Guild receives payment in full. 

Syndication

As mentioned above, if a project is made for free television that is not one of the big four networks, it is considered made-for-syndication. For example, the CW and ION are syndication. Unlike network, there is no separate designation for prime-time vs non-prime time reuse. The residuals for reruns of a made-for-syndication project, rerunning in syndication is a declining percentage of the residual base (see the 2023 Schedule of Minimums, page 29-30) per run. 

Run	Percentage
2	40%
3	30% each
4 through 6	25% each
7 through 10	15% each
11, 12	10% each
13 and beyond	5% each

• SVOD: The residual is 1.2% of accountable receipts.
• AVOD: The residual is 5.5% of residual base for each of two 26-week periods, then 2% of accountable receipts.
• Basic Cable: The residual is 2% of accountable receipts.
• Diginet: The residual is 2% of accountable receipts provided that the project is out of production. 
• Pay TV: The residual is 1.2% of accountable receipts.
• DVD: The residual is 1.5% of accountable receipts up to the first $1M in receipts, and 1.8% thereafter.
• EST: The residual is 20% of 1.8% of accountable receipts for the first 100K units sold, and 20% of 3.5% thereafter. 
• Foreign Free TV: The residual is an initial payment of up to 35% of the applicable minimum. It can be paid all at once or paid in three installments of 15%, 10%, and 10% with each installment being triggered by the foreign distributor’s gross exceeding certain thresholds. See the thresholds in the 2023 Schedule of Minimums, page 31. After the 35% initial payment has been paid, a residual of 1.2% of distributor’s foreign gross is due if the program exceeds another threshold. These thresholds vary dependent on length (see the 2023 Schedule of Minimums, page 31). 
• Theatrical: For limited theatrical exhibitions of up to 8 days with an admission charge, the residual is 3% of the Company’s accountable receipts are due if the exhibition takes place at least 24 hours after the episode’s initial telecast or 30 days if a MOW. Otherwise, the residual is up to 150% of the television residual base or 100% of the theatrical minimum depending on the scope of release. For limited theatrical exhibitions of a 30 or 60-minute episode of up to six days with an admission charge, 3% of Company’s accountable receipts are due if the exhibition takes place no more than 30 days in advance of or simultaneous with its exhibition on television. The episode, including the pilot, must be part of a series order of at least six episodes. Otherwise, the residual is up to 150% of the television residual base or 100% of the theatrical minimum depending on the scope of release.

Creator Payments

On an original serial or episodic series, the writer(s) entitled to separation of rights and “Created by” credit on the series is entitled to a residual on the creator minimum sequel payment payable for each episode of the series produced. With certain exceptions, creator sequel payment residuals are due for each subsequent broadcast of episodes of a series in the market for which the series was produced. Generally, the residual is a percentage of your creator sequel payment minimum, based on the number of runs as follows:

Run	Percentage
NPT (each run)	100%
2	40%
3	30% each
4 through 6	25% each
11, 12	10% each
13 and beyond	5% each

Examples

On August 13, 2025, a season 3 episode of the half-hour series St. Denis Medical is rerun on NBC in prime time. For this rerun, because the writer was contracted for the episode between May 2, 2024 and May 1, 2026, and received Written by credit, the residual due is $13,781. The creator of the series is due a creator sequel residual of $2,572 for this same rerun. Payment is due no later than September 13, 2025.

On July 20, 2025, a season 3 episode of one-hour series Walker ran for the second time on the CW. For this rerun, because the writer was contracted May 2, 2024 and May 1, 2026, and received Written by credit, the residual due is $12,606 ($31,514 x 40%). Payment was due no later than November 20, 2025.

Projects made-for-basic cable and reused on basic cable are generally paid pursuant to the “Sanchez Formula.” The formula is called “Sanchez” because a project known as Sanchez of Bel Air was one of the first made-for-basic-cable series for which the Guild negotiated basic cable residuals. The Sanchez Formula is a fixed, run-based formula that is paid as a percentage of a residuals base (see the 2023 Schedule of Minimums, page 29-30).

Run	Percentage
2-5	50%
6	6%
7	4%
8	4%
9	3.5%
10	3.5%
11	3%
12	2.5%
13 and beyond	1.5%

For example, if you were contracted on June 1, 2025 for a half-hour episode of a series made for the Disney Channel, and that episode reran on the Disney Channel, the residual for the 2nd run would be calculated as follows: $17,337 x 50% = $8,666.

Due Date

Residual payment is due 120 days after the air date. Note that the residual payment for runs 2 through 5 is paid all at once and due upon the second run. Payment is due even if runs 3, 4, and 5 never occur. Thereafter each run is paid on a per run basis. 

If residuals are paid late, Companies are required to pay interest at a rate of 1.5% per month accruing from the date of delinquency until the Guild receives payment in full. 

Reuse in Other Markets

In addition to the fixed, run-based residuals that are due for reuse on basic cable, residuals are also due when the project is reused in a market other than basic cable as follows:

Reuse Market

• SVOD: The residual is 1.2% of accountable receipts
• AVOD: The residual is 5.5% of residual base for each of two 26-week periods, then 2% of accountable receipts.
• Syndication: The residual is 2% of accountable receipts
• Diginet: The residual is 2% of accountable receipts provided that the project is out of production. 
• Pay TV: The residual is 1.2% of accountable receipts.
• DVD: The residual is 1.5% of accountable receipts up to the first $1M in receipts and 1.8% thereafter.
• EST: The residual is 20% of 1.8% of accountable receipts for the first 100K units sold and 20% of 3.5% thereafter.
• Foreign Free TV: The residual is an initial payment of up to 35% of the applicable minimum. It can be paid all at once or paid in three installments of 15%, 10%, and 10% with each installment being triggered by the foreign distributor’s gross exceeding certain thresholds. See the 2023 Schedule of Minimums, page 31 for the thresholds. After the 35% initial payment has been paid, a residual of 1.2% of distributor’s foreign gross is due if the program exceeds another threshold. These thresholds vary dependent on length (see the 2023 Schedule of Minimums, page 31). 
• Theatrical: For limited theatrical exhibitions of up to eight days with an admission charge, the residual is 3% of the Company’s accountable receipts is due if the exhibition takes place at least 24 hours after the episode’s initial telecast or 30 days if a MOW. Otherwise, the residual is up to 150% of the television residual base or 100% of the theatrical minimum depending on the scope of release. For limited theatrical exhibitions of a 30 or 60-minute episode of up to six days with an admission charge, 3% of Company’s accountable receipts is due if the exhibition takes place no more than 30 days in advance of or simultaneous with its exhibition on television. The episode, including the pilot, must be part of a series order of at least six episodes. Otherwise, the residual is up to 150% of the television residual base or 100% of the theatrical minimum depending on the scope of release.

Due Dates for Revenue-Based Residuals

Residual payment is due 60 days after the end of the quarter in which the accountable receipts are received. For example, let’s say your episode was licensed to AMC+ (SVOD) for $1M and, per the license agreement between the Company and AMC+, the $1M license fee is to be paid in installments over the course of 5 years.  When the Company remits the residual payments, they will be remitting payment only on the installment payment they received that quarter, and not on the full $1M license fee all at once. If they received $50,000 of the $1M license fee as an installment in Q2 2025, then they’d remit residual payment of $600 ($50,000 x 1.2% = $600) and the due date would be September 1, 2025 as that is 60 days after the end of Q2 2025. 

If residuals are paid late, Companies are required to pay interest at a rate of 1.5% per month accruing on the earlier of seven days after notice in writing to Company from the Guild of such delinquency or 60 days after such payment becomes due and payable.

Creator Payments

On an original serial or episodic series, the writer(s) entitled to separation of rights and “Created by” credit on the series is entitled to a residual on the creator minimum sequel payment payable for each episode of the series produced. With certain exceptions, creator sequel payment residuals are due for each subsequent broadcast of episodes of a series in the market for which the series was produced. Generally, the residual is a percentage of your creator sequel payment minimum, based on the number of runs as follows:

Run	Percentage
2-5	50%
6	6%
7	4%
8	4%
9	3.5%
10	3.5%
11	3%
12	2.5%
13 and beyond	1.5%

For MOW sequel residuals, in addition to the fixed run-based payments, supplemental market residuals will be payable at an additional 25% of the applicable minimum residual payable to the credited writers of the MOW Sequel.

Examples

On April 22, 2025, an episode of a SyFy channel one-hour series reran for the second time on SyFy. The writer of this episode received Written by credit and was contracted for the episode between May 2, 2025 and May 1, 2026. The residual payment due is $15,757 (50% of $31,514) and covers runs two through five. The residual payment was due no later than August 22, 2025. The creator of the series is also due a residual payment for this rerun. The creator sequel residual due is $2,444 (50% of $4,887) as they were contracted for the pilot between May 2, 2024 and May 1, 2025.

Residuals for reuse on domestic pay television of a dramatic or Comedy-Variety project made for pay TV are set forth as specified dollar amounts in the MBA. A fixed residual payment is due for each exhibition year the project is available on the pay television service.

In contrast with made-for-free television and made-for-basic cable, pay television reuse is not paid on a per-run basis. Rather, the pay television residual is triggered after either the 10th day of exhibition or one year form the date of the initial exhibition on the pay television service. The first 10 exhibition days on pay television is considered the first exhibition year. The 11th exhibition day on that service triggers residual payment for the second exhibition year.

For example, if an episode premiered on January 7, 2025 on HBO and continued to air seven more times that same day, the residual is not triggered by each of those seven runs. Instead, we look at exhibition days, so January 7, 2025 would count as only one exhibition day. If the episode continued to rerun every day between January 7, 2024 and January 17, 2025, residual payment would be triggered on January 17, 2025—the 11th exhibition day.

Residual payment for each exhibition year is a fixed, annual payment and is due each exhibition year as long as the project continues to be run on pay television. As with most other fixed payments, the amount varies depending on the length of the project. The residual payment for each exhibition year is listed in the 2023 Schedule of Minimums, page 32. Payment is due 120 days after the first exhibition day of the second exhibition year. The due date for the second exhibition year then sets the due date for future exhibition year payments. For example, if residual payment for exhibition year 2 is due on July 1, 2025, all future exhibition years’ payment will then be due on July 1.

If residuals are paid late, Companies are required to pay interest at a rate of 1.5% per month accruing from the date of delinquency until the Guild receives payment in full.

Note that reuse of a made-for-pay television program on the over the top services (“OTT”) of a pay television service, such as MAX and Paramount+ With Showtime, is considered pay television reuse and not streaming/SVOD reuse. For example, if someone watched episode 1 of The Penguin on MAX when it premiered on September 19, 2024 that reuse on MAX is pay television reuse and there would not be a separate residual payment for the HBO pay television reuse, even though the episode was available on both HBO and MAX. Each day the program is available on MAX constitutes an exhibition day, so the 11th exhibition day is generally 11 days after the project’s release on the OTT service. 

Example
If you wrote an one-hour episode of The Penguin and were contracted for that episode between May 2, 2024 and May 1, 2025, the residual payment for exhibition year 2, 3, and 4 would be $9,577 for each year. Residual payment for year 5 or any subsequent year beyond year 5 would be $1,324.

If you wrote an half-hour episode of Hacks and were contracted for such episode between September 25, 2023 and May 1, 2024, the residual payment for exhibition year 2, 3, and 4 would be $5,391 for each year. Residual payment for year 5 or any subsequent year beyond year 5 would be $972.

Reuse in Other Markets
In addition to the fixed, exhibition year residual payments due for reuse of pay television projects on domestic pay television, residuals are also due when the project is reused in a market other than pay television as follows:

Reuse Market

• SVOD: The residual is 1.2% of accountable receipts.
• AVOD: The residual is 5.5% of residual base for each of two 26-week periods, then 2% of accountable receipts.
• Syndication: The residual is 2% of accountable receipts.
• Diginet: The residual is 2% of accountable receipts provided that the project is out of production.
• Foreign Pay TV: The residual 2% of accountable receipts.
• DVD: The residual is 2% of accountable receipts from net unit sales in excess of 75,000 for ½ hour and 1-hour projects, 100,000 units for projects longer than 1-hour. 
• EST: The residual is 20% of 1.8% of accountable receipts for the first 100K units sold, and 20% of 3.5% thereafter.
• Foreign Free TV: The residual is an initial payment of up to 35% of the applicable minimum. It can be paid all at once or paid in three installments of 15%, 10%, and 10% with each installment being triggered by the foreign distributor’s gross exceeding certain thresholds. See the 2023 Schedule of Minimums, page 31 for the thresholds. After the 35% initial payment has been paid, a residual of 1.2% of distributor’s foreign gross is due if the program exceeds another threshold. These thresholds vary dependent on length (see the 2023 Schedule of Minimums, page 31).
• Theatrical: For limited theatrical exhibitions of up to 8 days with an admission charge, the residual is 3% of the Company’s accountable receipts if the exhibition takes place at least 24 hours after the episode’s initial telecast or 30 days if a MOW. Otherwise, up to the residual is 150% of the television residual base, or 100% of the theatrical minimum depending on the scope of release. For limited theatrical exhibitions of a 30 or 60-minute episode of up to 6 days with an admission charge, 3% of Company’s accountable receipts if the exhibition takes place no more than 30 days in advance of or simultaneous with its exhibition on television. The episode, including the pilot, must be part of a series order of at least 6 episodes. Otherwise, the residual is up to 150% of the television residual base, or 100% of the theatrical minimum depending on the scope of release. 

Residuals for reuse on a SVOD service of a project made-for-HBSVOD are set forth as specified dollar amounts in the MBA. 

While the formula for calculating domestic HBSVOD residuals has remained the same since HBSVOD was first introduced in the 2014 MBA, many of the factors have changed over the last three MBAs. 

Fixed foreign HBSVOD residuals were introduced in the 2017 MBA for SVOD services that operate globally, such as Netflix, Amazon, and Disney+. The formula remained mostly the same in the 2020 MBA, with increases to the foreign residual payments in later exhibition years. However, the formula changed more significantly in the 2023 MBA, which resulted in a significant increase in the fixed foreign HBSVOD residual. 

The domestic and foreign formulas for the 2017-2023 MBAs are detailed below. 

The Formula: Domestic (2017-2023 MBAs)

Residual Base x Subscriber Factor x Exhibition Year Percentage

Residual Base Defined

The Residual Base is the base amount by which the subscriber factor and exhibition year percentage are multiplied. The residual base amounts vary based on the length of the program and contract date. For example, these are the residual bases for 30 and 60-minute projects contracted between September 25, 2023 and May 1, 2026:

Length	Residual Base (Contract Date 9/25/23)-5/1/26
30	$16,724
60	$30,398

For the residual bases, refer to the 2014, 2017, 2020, and 2023 Schedule of Minimums.

Subscriber Factor Defined
The Subscriber factor is a multiplier based on the number of subscribers of the SVOD service. The more subscribers a service has, the greater the multiplier. The subscriber factors are broken into the subscriber tiers below. Note that the subscriber tier at the time the program is written applies to the program in perpetuity.

2023 MBA (where principal photography commences on or after 7/1/24)
Subscriber Tier	Domestic Subscribers	Subscriber Factor
3	Fewer than 20M	65%
4	20M to 45M	100%
5	20M to 45M	150%

*The 2023 MBA collapsed Tiers 1 and 2 with Tier 3

2017-2020 MBA
Subscriber Tier	Domestic Subscribers	Subscriber Factor
1	Under 1M	20%
2	1M to 5M	40%
3	Over 5M but Fewer than 20M	65%
4	20M to 45M	100%
5	Over 45M	150%

*Note that the fixed HBSVOD formula under the 2014 MBA covers worldwide use

The Guild’s Contracts Department reevaluates the subscriber tiers of the streaming services each July 1st. As of 7/1/22, the subscriber tiers of the various services are as follows:

Domestic Subscriber Tiers as of July 1, 2022
1-5 million	Over 5 million but fewer than 20 million	20 million to 45 million	> 45 million
BET+	Spectrum Originals	Apple TV+ Disney+ HBO Max Paramount+ Peacock	Amazon Hulu Netflix

See the subscriber tiers by service pre-7/1/22.

Exhibition Year Defined
Under the 2017-2023 MBAs, your initial compensation covers 90 days of streaming on an SVOD platform with more than 1M domestic subscribers. For SVOD services with fewer than 1M domestic subscribers, initial compensation covers one year of streaming. Under the 2014 MBA, initial compensation covers one year of streaming on the SVOD platform, regardless of the number of subscribers.

After the expiration of the 90 days or one year of streaming, as the case may be, payment is triggered. Thereafter, residuals are due for each 12-month period of availability on the SVOD service. These windows or periods are called “exhibition years.” (Note that the payment trigger date is not the residual due date. This is explained later in the Payment Due Dates section below.)

2023 MBA
Exhibition Year	Percentage
1	45%
2	40%
3	35%
4	25%
5	20%
6	15%
7	10%
8	10%
9	10%
10	5%
11	5%
12	5%
Each year thereafter	1.5%

2020 MBA
Exhibition Year	Percentage
1	45%
2	40%
3	35%
4	25%
5	20%
6	15%
7	10%
8	8%
9	5%
10	4.5%
11	3%
12	3%
Each year thereafter	1.5%

2017 MBA
Exhibition Year	Percentage
1	35%
2	30%
3	30%
4	25%
5	20%
6	15%
7	10%
8	8%
9	5%
10	4.5%
11	3%
12	2.5%
Each year thereafter	1.5%

2014 MBA
Exhibition Year	Percentage
2	30%
3	30%
4	25%
5	20%
6	15%
7	10%
8	10%
9	10%
10	5%
11	5%
12	5%
Each year thereafter	1.5%

The Formula - Foreign (2017-2023 MBAs)

The 2023 MBA saw significant gains in the foreign HBSVOD residual formula. For the first time, the residual amount is based on a service’s number of foreign subscribers. The formula is the same as that 
for domestic HBSVOD: Residual Base x Subscriber Factor x Exhibition Year Percentage. However, the foreign residual payment has its own separate set of subscriber factors:

2023 MBA
Subscriber Tier	Foreign Subscribers	Subscriber Factor
1	Fewer than 20M	47%
2	20M to 45M	60%
3	More than 45M but fewer than 75M	75%
4	75M or more	90%

The foreign formula under the 2020 and 2017 MBAs is a percentage of the domestic residual payment. For programs written under the 2017 MBA, that percentage starts at 35% and declines over time. For programs written under the 2020 MBA, the annual percentage stays the same at 35% of the domestic residual payment for that year.

2020 MBA
Exhibition Year	Percentage
Each Year	35%

2017 MBA
Exhibition Year	Percentage
1	35%
2	35%
3	35%
4	25%
5	25%
6	25%
7	20%
8	20%
9	20%
10	15%
11	15%
12	15%
Each year thereafter	10%

As mentioned above, the fixed foreign HBSVOD residual is only for services that operate globally. For reuse on a foreign SVOD service that does not operate globally, such as Peacock, the residual is 1.2% of the accountable receipts. For example, if a project is made for Peacock and streamed on SVOD internationally, the residual would be 1.2% because Peacock does not operate globally.

Payment Due Dates 
For programs written under the 2017-2023 MBAs, residual payment for Exhibition Year 1 is due 60 days after the end of the quarter in which the 91st day of streaming falls. This day sets the residual payment due date for subsequent exhibition years. For example, if the episode is released on November 1, 2025, the 91st day of streaming is February 2, 2026, the quarter end date is March 31, 2026, and the payment due date for Exhibition Year 1 is, therefore, June 1, 2026. All subsequent exhibition year payments will be due annually on June 1st. Year 2 will be due on June 1, 2027, Year 3 will be due June 1, 2028, and so on.

If residuals are paid late, Companies are required to pay interest at a rate of 1.5% per month accruing from the date of delinquency until the Guild receives payment in full. If you have a question concerning the grandfathering status of your project, please contact our Residuals Department.

Grandfathering

Unlike series made for television in which a writer’s contract date determines the applicable residual formula, projects made-for-HBSVOD don’t solely look at contract date to determine the residual formula. Various projects are considered “grandfathered” to older MBAs, regardless of the date of the writer’s contract. For example, a writer could have been contracted during the term of the 2017 MBA on an existing series, but have their residuals calculated using the 2014 HBSVOD formula. 

If you have a question concerning the grandfathering status of your project, please contact our Contracts Department.

The 2020 MBA put an end to most new grandfathering on current and future series and seasons. Any new season of a HBSVOD series where the principal photography of the first episode of that season begins on or after July 1, 2021 will fall under the residual formula of the MBA in effect at the time the writer was contracted. This end to grandfathering applies to series and seasons that fell under or were grandfathered to the 2017 MBA. Series such as Stranger Things, which was grandfathered to the 2014 MBA, will continue to be grandfathered under the 2014 MBA, even for new seasons that enter into principal photography after July 1, 2021.

Examples

If you wrote a 1-hour episode of a Netflix series under the 2023 MBA and received a final Written by credit, your Exhibition Year 1 residual payment would be calculated using $30,398 as the base. Since it is Netflix, the domestic subscriber factor is 150% and the exhibition year percentage is 45% for Year 1.

$30,398 x 45% x 150% = $20,519

For foreign reuse, Exhibition Year 1, you would receive $12,311 because Netflix has more than 75M foreign subscribers.

$30,398 x 45% x 90% = $12,311

If you wrote a 1-hour episode of a Disney+ series under the 2020 MBA and received a final Written by credit and you were contracted during May 2, 2021-May 1, 2023, your Exhibition Year 1 residual payment would be calculated using $29,657 as the base. Since it is Disney+, the domestic subscriber factor is 100% and the exhibition year percentage is 45% for Year 1.

$29,657 x 45% x 100% = $13,346

For foreign reuse, Exhibition Year 1, you would receive $4,671, which is 35% of the domestic residual.

$13,346 x 35% = $4,671

Performance Metric Bonus
New to the 2023 MBA is the Performance Metric Bonus in which a bonus residual is triggered on HBSVOD programs if the equivalent of 20% or more of a streaming service’s U.S. subscribers view the series or feature within the first 90 days of release. The bonus is equal to 50% of the applicable fixed residual, including both the domestic and foreign residual if the service operates globally. The bonus applies to programs released on or after January 1, 2024. Made-for-HBSVOD projects written under prior MBAs are eligible for the bonus as long as they are first released on or after January 1, 2024. 

For example, using the combined domestic and foreign Exhibition Year 1 residual payment of $32,830 ($20,519 + $12,311) for a Netflix 1-hour episode under the 2023 MBA, the bonus residual would be $16,415. 

Payment of the bonus is due 60 days after the end of the calendar quarter in which the 90-day measuring period for domestic views is complete. 

If the bonus is paid late, Companies are required to pay interest at a rate of 1.5% per month accruing from the date of delinquency until the Guild receives payment in full. 

The performance metric is calculated based on the number of domestic views divided by number of domestic subscribers, and domestic views are calculated as the total aggregated domestic hours viewed for all episodes of a season. For a feature, the hours are calculated in increments of 0.1 hour (i.e., 6 minutes) divided by the total runtime of the program. A third-party auditor is available to resolve any dispute over which programs qualify for the bonus.

Reuse in Other Markets
Residuals are also due if your made-for-HBSVOD project is reused in a market other than the SVOD platform on which it was originally released:

Reuse Market

• Free Streaming (related or affiliated service): If the HBSVOD program is released on a free/ad-supported service that is related to the SVOD platform for which the HBSVOD program is made, such as an Amazon Prime project being reused on Freevee, within one year of release on the SVOD platform, the residual due is 5.5% of the HBSVOD residual base and covers 26 weeks of streaming on the free/ad-supported service. If the program is still available after 26 weeks, a second residual payment of 5.5% of the HBSVOD base is due. If the program is available on a free/ad-supported service one year or more following the initial release date on the SVOD platform, the residual is 2% of accountable receipts. 
• Free Streaming (unrelated or unaffiliated service): If the HBSVOD program is released on a free/ad-supported service that is unrelated/unaffiliated to the SVOD platform on which it was originally released, the residual is 2% of accountable receipts. 
• SVOD (a service other than the service on which it was originally released): The residual is 1.2% of accountable receipts. An example of this would be if the HBSVOD program was originally released on Netflix and is subsequently released on Disney+.
• Network Prime Time: If the HBSVOD program is released on network prime time (“NPT”), the residual is 100% of the NPT residual base.
• Basic Cable: If the HBSVOD program is release on basic cable, the residual is 2% of accountable receipts.
• Foreign Free TV: If the HBSVOD program is released on foreign free tv, the residual is 35% of the other than network prime time minimum.
• Theatrical: For limited theatrical exhibitions of up to 8 days with an admission charge, 3% of the Company’s accountable receipts is due if the exhibition takes place at least 24 hours after the episode’s initial telecast or 30 days if a MOW. Otherwise, the residual is up to 150% of the television residual base, or 100% of the theatrical minimum depending on the scope of release. For limited theatrical exhibitions of a 30 or 60-minute episode of up to 6 days with an admission charge, 3% of Company’s accountable receipts if the exhibition takes place no more than 30 days in advance of or simultaneous with its exhibition on television. The episode, including the pilot, must be part of a series order of at least 6 episodes. Otherwise, the residual is up to 150% of the television residual base, or 100% of the theatrical minimum depending on the scope of release. 

Under the 2023 MBA, non-dramatic programs (Comedy-Variety, Quiz & Audience, Daytime Serials, etc.) can now be classified as HBSVOD if they meet the high budget thresholds. Previously, no matter how high the budget, non-dramatic programs could not be classified as HBSVOD. This new designation comes with increased initial compensation (please reach out to the Guild’s Contracts Department for more information in this regard). The residual formula for these programs did not change and remains the same as in previous MBAs.

Unlike dramatic HBSVOD which has a fixed residual, the formula for non-dramatic HBSVOD is 1.2% of the portion of the license fee attributable to qualifying period. Your initial compensation (i.e. the script fee) covers 26 weeks of SVOD reuse, and then residuals are due for the period after that initial 26-week period. The Company allocates a portion of the license fee toward the first 26-week period and the residual of 1.2% is calculated on the remainder of the license fee.

For example, let’s say Sony produced a series for Peacock and Peacock paid Sony a license fee of $1M for the right to stream the project for a five-year period. Then let’s say Sony allocates 50% of that $1M license fee to the initial 26-week period. This would mean that residuals would be calculated on the remaining 50% of the license fee, which is $500,000. 1.2% x $500,000 = $6,000.

The residual payment is due 60 days after the end of the quarter in which the license fee attributable to the period after the initial 26-week period is received. Using the example above, the residual payment is triggered once Sony receives the first dollar beyond the initial $500,000 payment. License fees are often paid in installments over the course of the term of the license or are paid in one lump sum. In either scenario, the residual payment is due 60 days after the end of the quarter in which the portion of the license fee on which they’re paying is received.

If residuals are paid late, Companies are required to pay interest at a rate of 1.5% per month accruing from the date of delinquency until the Guild receives payment in full.

Reuse in Other Markets
Residuals are also due if your non-dramatic made-for-HBSVOD project is reused in a market other than the SVOD platform on which it was originally released:

• Free Streaming (original): If the program is original, meaning it is not derivative of an existing television project that was produced for traditional media, then there is no residual for free/ad-supported streaming. Initial compensation covers all free streaming reuse.
• Free Streaming (derivative): If the program is derivative, meaning it is based on an existing television project that was produced for traditional media, then initial compensation covers 13 weeks of free streaming. If the program is still available for free streaming after 13 weeks, the residual due is 3.5% of the residual base (see the 2023 Schedule of Minimums, pages 10-12) for two 26-week periods. If the program is still available to stream on a free streaming service after one year of release, the residual is 2% of accountable receipts. 
• SVOD (a service other than the service on which it was originally released): The residual is 1.2% of accountable receipts. An example of this would be if the program was originally released on Netflix and is subsequently released on Disney+.
• Network Prime Time: If the program is released on network prime time (“NPT”), the residual is 100% of the NPT residual base.
• Basic Cable: If the program is released on basic cable, the residual is 2% of accountable receipts.
• Foreign Free TV: If the program is released on foreign free tv, the residual is 35% of the other than network prime time minimum.
   

Whether your project is dramatic or non-dramatic, if it is made for an SVOD service and does not meet the budget thresholds to be considered High Budget SVOD, but is budgeted at least $25K per minute, the residual for SVOD reuse is 1.2% of the portion of the license fee attributable to the period after 26 weeks following release. Your initial compensation (i.e. the script fee) covers 26 weeks of SVOD reuse, and then residuals are due for the period after that initial 26-week period. The Company allocates a portion of the license fee toward the first 26-week period and the residual of 1.2% is calculated on the remainder of the license fee.

For example, let’s say Warner Bros produced a series for Netflix and Netflix paid Warner Bros a license fee of $1M in order to have the right to stream the project for a five-year period. Then let’s say Warner Bros allocates 50% of that $1M license fee to the initial 26-week period. This would mean that residuals would be calculated on the remaining 50% of the license fee of $500,000. The formula would be 1.2% x $500,000 = $6,000.

Payment is due 60 days after the end of the quarter in which the license fee attributable to the period after the initial 26-week period is received. Using the example above, payment is triggered once Warner Bros. receives the first dollar beyond the initial $500,000 payment. License fees are often paid in installments over the course of the term of the license or are paid in one lump sum. In either scenario, payment is due 60 days after the end of the quarter in which the portion of the license fee on which they’re paying is received.

If residuals are paid late, Companies are required to pay interest at a rate of 1.5% per month accruing on the earlier of seven days after notice in writing to Company from the Guild of such delinquency or 60 days after such payment becomes due and payable.

Reuse in Other Markets
Residuals are also due if your made-for-SVOD project is reused in a market other than the SVOD platform on which it was originally released:

• Free Streaming (original): If the program is original, meaning it is not derivative of an existing television project that was produced for traditional media, then there is no residual for free/ad-supported streaming. Initial comp covers all free streaming reuse.
• Free Streaming (derivative): If the program is derivative, meaning it is based on an existing television project that was produced for traditional media, then initial compensation covers 13 weeks of free streaming. If the program is still available for free streaming after 13 weeks, the residual due is 3.5% of the residual base (see the 2023 Schedule of Minimums, pages 10-12) for two 26-week periods. If it is still available to stream on a free streaming service after one year of release, the residual is 2% of accountable receipts.
• SVOD (a service other than the service on which it was originally released): If the program is released on an SVOD service other than the service on which it was originally released, the residual is 1.2% of the portion of the license fee attributable to the period after the initial 26-week period. An example of this would be if the program was originally released on Peacock and is subsequently released on HULU.
• Network Prime Time: If the program is released on network prime time (“NPT”), the residual is 100% of the NPT residual base.
• Basic Cable: If the program is released on basic cable, the residual is 2% of accountable receipts.
• Foreign Free TV: If the program is released on foreign free tv, the residual is 35% of the other than network prime time minimum.

 

If the program is original, meaning it is not derivative of an existing television project that was produced for traditional media, there is no residual for free/ad-supported streaming. Initial compensation covers all free streaming reuse.

If the program is derivative, meaning it is based on an existing television project that was produced for traditional media, then initial compensation covers 13 weeks of free streaming. If the program is still available for free streaming after 13 weeks, the residual due is 3.5% of the residual base (see the 2023 Schedule of Minimums, pages 10-12) for two 26-week periods. If it is still available to stream on a free streaming service after one year of release, the residual is 2% of accountable receipts.

Reuse in Other Markets
Residuals are also due if your made-for-AVOD project is reused in a market other than AVOD:

• SVOD: If the program is released on a SVOD service, the residual is 1.2% of the portion of the license fee attributable to the period after the initial 26-week period.
• Network Prime Time: If the program is released on network prime time (“NPT”), the residual is 100% of the NPT residual base.
• Basic Cable: If the program is released on basic cable, the residual is 2% of accountable receipts.
• Foreign Free TV: If the program is released on foreign free tv, the residual is 35% of the other than network prime time minimum.

Under the 2023 MBA, high budget programs made for an ad-supported streaming service can now be classified as HBAVOD if they meet the high budget thresholds. Previously, no matter how high the budget, programs made for a free, ad-supported service did not have a separate designation from a low budget project made-for-AVOD. This new designation also comes with increased initial compensation (please reach out to the Guild’s Contracts Department for more information in this regard).

The residual for AVOD reuse of an HBAVOD program is 2% of the portion of the license fee attributable to the period after 26 weeks following release. Your initial compensation (i.e. the script fee) covers 26 weeks of AVOD reuse, and then residuals are due for the period after that initial 26-week period. The Company allocates a portion of the license fee toward the first 26-week period and the residual of 2% is calculated on the remainder of the license fee.

For example, let’s say Sony produced a series for Tubi and Tubi paid Sony a license fee of $1M in order to have the right to stream the project for a five-year period. Then let’s say Sony allocates 50% of that $1M license fee to the initial 26-week period. This would mean that residuals would be calculated on the remaining 50% of the license fee of $500,000. The formula would be 2% x $500,000 = $10,000.

The residual payment is due 60 days after the end of the quarter in which the license fee attributable to the period after the initial 26-week period is received. Using the example above, the residual payment is triggered once Sony receives the first dollar beyond the initial $500,000 payment. License fees are often paid in installments over the course of the term of the license or are paid in one lump sum. In either scenario, residual payment is due 60 days after the end of the quarter in which the portion of the license fee on which they’re paying is received.

If residuals are paid late, Companies are required to pay interest at a rate of 1.5% per month accruing on the earlier of seven days after notice in writing to Company from the Guild of such delinquency or 60 days after such payment becomes due and payable.

Reuse in Other Markets
Residuals are also due if your made-for-AVOD project is reused in a market other than AVOD:

• SVOD: If the program is released on an SVOD service, the residual is 1.2% of the license fee.
• Network Prime Time: If the program is released on network prime time (“NPT”), the residual is 100% of the NPT residual base.
• Basic Cable: If the program is released on basic cable, the residual is 2% of accountable receipts.
• Foreign Free TV: If the program is released on foreign free tv, the residual is 35% of the other than network prime time minimum.