RESIDUALS, PARTICIPATIONS & ROYALTY SERVICES I. RESIDUALS SERVICES WHAT ARE RESIDUALS?

Residual payments are due to performers such as actors, directors and writers, who provide services for Theatrical or Television motion pictures as well as Television shows or episodic series’, once it is sold and/or exploited in any market, including but not limited to Basic Cable, Syndication, Home Video, Pay Television and Digital platforms.

HOW ARE RESIDUALS CALCULATED?
Residuals are calculated and due in accordance with the terms of the respective guild basic agreements, which are applicable to your project. Calculations can vary greatly depending upon what market the project was made for and what specific guilds apply (i.e., they can be based on a percentage of the collections received or on a formula each time a project airs on a TV channel). There are strict deadlines in regards to reporting your collections and/or airdates and paying residuals due to each guild, which, if not met, can result in extensive late payment penalties and subsequent audits. Below is a list of both domestic & foreign guilds, in which residual obligations may apply: Domestic Foreign SAG-AFTRA- Screen Actors Guild – American ACTRA- Alliance of Canadian Cinema, TV & Radio Artists of TV & Radio Artists. UBCP – Union of B.C. Performers WGA – Writer’s Guild of America EQUITY- Actors’ Guild of Great Britain DGA – Director’s Guild of America MEAA- Media Entertainment & Arts Alliance (Australia) AFM – American Federation of Musicians WGC- Writer’s Guild of Canada IATSE- Int’l Alliance of Theatrical Stage Employees DGC- Director’s Guild of Canada There are many guild regulations and each guild has its own Basic Agreement, with different rules for every market the project is sold, that continuously change. Not only do we have extensive knowledge of all guild basic agreements, but we can expertly handle all of your residual reporting & payment obligations and management functions seamlessly. A. PRE-PRODUCTION CONSULTATION With expert guidance, you have the opportunity to significantly mitigate your potential residual obligations as well as strategize the timing of those payments for your cash flow needs. We can take the following steps to ensure you take advantage of these opportunities available to you:
• Before the decision is made to produce a project, we can estimate what the residual cost may be, based on certain assumptions such as the projected cast list, anticipated guilds that will apply, and ultimate sales projections.
• Based on our extensive knowledge of the guild basic agreements, we can customize a strategy in regards to casting the project to ensure you are taking advantage of all potential residual reduction benefits, such as the utilization of residual over-scales and buyouts.