Introduction

The question of whether actors or actresses receive royalties from movies licensed to and shown on Netflix has long been a topic of interest among fans and industry professionals alike. The answer is multifaceted, involving complex contractual agreements and specific union negotiations. This article delves into the intricacies of how actors and actresses earn royalties from such syndicated content, focusing on the role of major entertainment unions, the negotiation process, and the varying financial outcomes based on production dates.

Nealson, SAG, and DGA's Role in Charging Syndication Fees

In the audiovisual industry, actors and actresses can earn royalties from syndicated content. Movies or series licensed to platforms like Netflix are subject to these royalties, which are based on a negotiated percentage of each syndication source by the studio or production company. Typically, actors and actresses receive a bulk fee for over a decade of syndication rights, often ranging from one to seven years.

The Screen Actors Guild American Federation of Television and Radio Artists (SAG-AFTRA) and the Directors Guild of America (DGA) each play a significant role in negotiating a piece of this syndication fee. This one-time fee can amount to millions or tens of millions of dollars, with each union receiving a corresponding share. These unions often draw the public's attention for their strikes, which typically involve not only hourly pay but also the share of revenue a producer receives from platforms like Netflix, Hulu, and Amazon Prime.

How Residuals are Calculated and Paid

When a production is syndicated, SAG-AFTRA compiles and reports the hours worked by each actor for each production. These reports, submitted daily or weekly, detail the working hours for each actor and track how long they have been earning residuals. The percentage of residuals is calculated based on the years since the production was released, typically decreasing over time from 100% to a minimum of 10%.

The calculated residual amounts are then sent to the actors or their business managers and agents for distribution. This process ensures that actors receive fair compensation for their work, even years after the production's initial release. Each production is uniquely managed, and the distribution of residuals directly depends on the specific contract terms and union agreements.

Variations Based on Production Date

It is important to note that the payment of residuals is not universal across all actors and productions. For older works, such as those from the 1950s, 1960s, or even the 1970s, actors may not have received residuals at all. This is particularly true for works produced outside of union contracts, like the famous series Gilligan's Island. Bob Denver, one of the cast members of Gilligan's Island, has publicly confirmed that actors from this series did not receive residuals. The union agreements of the past were significantly different from those of today, firmly encapsulating the need for current productions to comply with modern labor laws and contracts.

Conclusion

The world of royalties and residuals from movies licensed to and shown on Netflix is a complex landscape that involves detailed contractual agreements, union negotiations, and varying financial outcomes based on the production date. Understanding these elements is crucial for both actors and industry professionals to navigate the evolving entertainment industry.

Keywords: Netflix royalties, movie royalties, entertainment unions, residuals payment