![]() Writers in the Writers Guild of America (WGA) decided to negotiate for higher residual payments. Instead, it proposed that residuals be pooled so the studios would recoup their costs paying the actors, directors, and writers based on a profit-based formula, which would solve the problem that residuals remain the same despite decreases in TV profits. In 2007, the Alliance of Motion Picture and Television Producers (AMPTP), the industry bargaining group that deals with the trade unions, called for an end to the current residual payment system in response to the rise of online media. The front gate of Paramount Studios on November 12, 2007, during the 2007–08 WGA strike On the other hand, domestic residuals were adjusted to take a sliding scale, which would incentivize producers to syndicate one-hour shows, whose revenue performance was poor, to independent TV stations. The new contract allowed writers two formulas for calculating foreign residuals: the existing formula ($4,400 maximum for a one-hour show) or the new formula (1.2% of the producer's foreign sales). In 1988, WGA launched its longest strike, lasting 22 weeks, over a disagreement over residuals for TV shows broadcast in foreign countries. (Unrelated to residuals, Reagan also secured health insurance and pensions for SAG actors.) This upset older actors like Mickey Rooney, Glenn Ford and Bob Hope, who blamed Reagan and the SAG board for weak negotiating, but in April 1960 SAG voted to accept the offer and returned to work. They would issue a one-time payout of $2.25 million for movies made between 19, and movies made before 1948 would not be eligible for any residuals. Starting with Universal Pictures, studios ended up agreeing to film residuals, but only for movies made after 1960. Reagan asked SAG for a strike authorization in February and the actors agreed on a work-stop date for March 7, 1960, Hollywood's first-ever industry-wide strike. This stalemate led SAG actors to re-elect Ronald Reagan as SAG President in fall of 1959. The studios, however, took a hardline stance on residuals for movie actors due to their shrinking revenue as well as the fact that if they paid residuals to actors, they would also have to pay directors and screenwriters as well. As Americans increasingly watched TV at home instead of going out to the movies, movie attendance plummeted by over 65% between 19, studios were grappling with decreased revenues, and actors felt like they were being deprived of significant income that was owed to them. That said, film actors were still not paid residuals for reruns. In 1953, the WGA negotiated residuals for up to five reruns for made-for-TV shows. In 1952, residual payments were extended to these television reruns, thanks in large part to Ronald Reagan, whose first term as president of the Screen Actors Guild (SAG) ran from 1947 to 1952. Kinescope recordings were made of live east coast performances so they could be broadcast several hours later on the west coast, which also made it possible to broadcast these shows later as many times as they wanted. ![]() Initially, most television broadcasts were either live performances or broadcasts of older films originally produced for theaters. In the early 1950s, a similar transition occurred in television. ![]() This established the precedent for residual payments from recorded performances. The performers were kept on standby and paid for a second performance in case there were technical problems. As sound quality improved, radio networks began using them for time-delaying west coast broadcasts, eventually eliminating the need for multiple performances. After audio " transcription disc" technology became widely available in the late 1930s, it was initially used to make recordings to send to radio stations that were not connected to the live network. The performers were paid for each performance. Live radio programs with nationwide audiences were generally performed either two or three times to account for different time zones between the east and west coasts of the United States. Technological advances gave rise to residual payments, and their evolution can be traced in terms of those technologies. The word is typically used in the plural form. Residuals are calculated and administered by industry trade unions like SAG-AFTRA, the Directors Guild of America, and the Writers Guild of America. ![]() Residuals are financial compensations that are paid to the actors, film or television directors, and others involved in making TV shows and movies in cases of reruns, syndication, DVD release, or streaming media.
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