As streamers add subscribers, increases in script fees and residuals are coming for writers on many high budget programs.

(12/8/2022)

One factor determining the minimum script fees and residuals for high budget dramatic programs made for an SVOD service is the service’s domestic (U.S. and Canada) subscriber tier for the given year. To ensure that writer compensation keeps pace with growing audiences, the subscriber tier for each SVOD service is reviewed every year on July 1.

Over the past year, Apple TV+, Paramount+, Peacock, and Hulu have grown their domestic subscribers and moved into higher tiers. This means higher script fees are due for High Budget SVOD (HBSVOD) dramatic programs written on or after July 1, 2022 for Apple TV+, Paramount+, and Peacock that fall into the highest budget category ($2.1 mil or more for a half-hour episode, $3.8 mil or more for a one-hour episode, $4.5 mil for movies 96 minutes in length or more). For all high budget programs written on or after July 1, 2022 for these platforms and for Hulu, the movement into a higher subscriber tier means improved residuals on the original SVOD platform.

As of July 1, 2022, each SVOD service’s subscriber tier is indicated in the table below:

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

Script Fee Increases

On streaming platforms with fewer than 20 million subscribers, the script fees for high budget programs are set at other-than-network-primetime rates (used on basic cable and on the CW network): currently $16,668 for a half-hour episode, $30,297 for a one-hour episode, $59,668 for a 96-minute program). For streaming platforms with 20 million or more subscribers, script fees are paid at the network primetime rates – when the budget meets or exceeds $2.1 million for half-hour episodes or $3.8 million for one-hour episodes. The script fee for these higher budget programs is $28,403 for a half-hour episode, $41,773 for a one-hour episode, $84,523 for a 96-minute program. 

Most series produced for Apple TV+, Peacock and Paramount+ fall into this higher budget category, which means writers should be seeing increased script fees as a result of the subscriber growth. While most feature-length content released on streaming platforms are currently made under theatrical terms, those that are made as high-budget streaming projects will have increases in minimums. 

Pages 35 and 36 of the Schedule of Minimums provide the full breakdown of the budget thresholds and corresponding script fees.

Increased HBSVOD Residuals

The domestic subscriber tier also determines residuals, with higher residuals for HBSVOD programs on services in higher subscriber tiers. For the domestic use of these programs on the original platform after the first 90 days, the company must pay a residual according to the following formula:

Residual Base x Exhibit Year Percentage x Subscriber Factor

The following table outlines the increases in the subscriber factor based on the number of subscribers:

Subscriber Tier Domestic Subscribers Subscriber Factor
1 Under 1 million 20%
2 1 million to 5 million 40%
3 Over 5 million but fewer than 20 million 65%
4 20 million to 45 million 100%
5 Over 45 million 150%

After the first 90 days of viewing, residuals for HBSVOD programs are paid annually for each year the content is made available on the service. The table below provides the current residual payments for half-hour, one-hour episodes and feature-length programs for the first year of domestic availability (additional payments are made for foreign availability on the streaming service and for each additional year of availability on the service).

For streaming services that have moved from the over 5 million but fewer than 20 million tier to the 20-45 million tier, writers of new episodes and movies written on or after July 1, 2022 will see residual increases of 54%. Hulu residuals will also increase 50% on new episodes and movies.

Year 1 Domestic HBSVOD Residuals
Domestic Subscribers Half Hour Episode One Hour Episode Two Hour Movie
Under 1 million - - -
1 million to 5 million $2,937 $5,338 $10,513
Over 5 million but fewer than 20 million $4,772 $8,675 $17,084
20 million to 45 million $7,342 $13,346 $26,283
Over 45 million $11,013 $20,018 $39,425

The Guild works to confirm each SVOD service’s subscriber tier every year as close to July 1 as possible. See Subscriber Tiers by Streaming Platform to check each service’s tier as of July 1 of every year, starting in 2020.

Have any questions about this information? Please contact the WGAW’s Contracts Department for any questions related to the budget of your program, script fees, or High Budget SVOD series that may be grandfathered, and contact the Residuals Department for any questions related to the calculation of residuals.