Residuals Informational Meeting. Los Angeles March 24, 2016
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1 Residuals Informational Meeting Los Angeles March 24, 2016
2 What Are Residuals? Original Compensation Additional Compensation for Distribution and Exhibition beyond that covered by Original Compensation
3 Two Types of Residuals Fixed / Run Based Revenue/ Based
4 Fixed (Run Based) Residuals TV Agreements Network Prime Time Residuals Network and Syndication Residuals Triggered by reruns in network prime time Due 30 days after each rerun 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 Foreign Free TV 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
5 Fixed Residuals TV Agreements Theatrical Residuals Triggered by theatrical exhibition of a television or made for new media picture Free Internet Streaming Residuals Made for HBSVOD Residuals Triggered by free streaming within 1 year of initial exhibition on television and outside of any free streaming window Triggered by exhibition on the original SVOD platform in excess of 1 year
6 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 rerun Residuals = $ Residuals = $ (Run 2 at 30% of TAM)
7 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. 1 st Quarter: January 1 March 31 Due to SAG-AFTRA by May 31 2 nd Quarter: April 1 June 30 Due to SAG-AFTRA by August 31 3 rd Quarter: July 1 September 30 Due to SAG-AFTRA by November 30 4 th Quarter: October 1 December 31 Due to SAG-AFTRA by March 1 Processed and mailed between June 1 - July 31 Processed and mailed between September 1 - October 31 Processed and mailed between December 1 - January 31 Processed and mailed between March 1 April 30
8 How Does That Math Work? Example: Day Performer =.4 units Weekly = 2 units Total units for Theatrical picture = 750 units Licenses 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 ( residuals amounts including P&H contribution)
9 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 Made for Network, Syndication, Foreign TV, Pay TV, or Home Video No residuals Fixed Fixed (Run Based) Fixed (Run Based) and Fixed and Fixed and Made for Basic Cable Fixed Fixed (Run Based) Fixed (Run Based) and Fixed and Fixed (Run Based) and Fixed and Original and Derivative high budget made for Subscription Internet Fixed Fixed (Run Based) Fixed (Run Based) Fixed and Fixed and Original (low budget) made for Internet Fixed Fixed (Run Based) Fixed (Run Based) Fixed and (if residuals are triggered) Derivative (low budget) made for Internet Fixed Fixed (Run Based) Fixed (Run Based) Fixed and Fixed and
10 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
11 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
12 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
13 How Do We Process Residuals? This is an easy process, right? Checks In
14 Here s the Reality
15 How Do We Process Residuals? Step 1 Delivery
16 How Do We Process Residuals?
17 How Do We Process Residuals? Batched and Organized
18 How Do We Process Residuals?
19 How Do We Process Residuals?
20 How Do We Process Residuals?
21 How Do We Process Residuals?
22 Information Online
23 How Do We Process Residuals?
24 How Do We Process Residuals?
25 How Do We Process Residuals?
26 Volume & Complexity
27 Studio Provided Payment Report
28 # of Residual Checks Processed Payments 4,000,000 3,000,000 2,000,000 1,000,
29 Keys to Receiving Your Residuals Keep your address current! Keep your address current! Keep your address current!
30
31 Thank you! Questions?
32 Residuals Information TV/Theatrical/New Media Residuals Los Angeles:
Screen Actors Guild of America (SAG) Directors Guild of America (DGA) Writers Guild of America (WGA) Television Agreement
Initial Compensation Initial Compensation Initial Compensation Initial compensation paid to the performer covers one run in each city in the U.S. and Canada. Initial compensation paid to the director covers
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