It’s a common misconception that only actors get residuals. Artists and artisans behind the camera, including writers, also qualify for this unique type of compensation in the entertainment industry. We’re going to break down what residuals are, how writers receive them, and why they matter. As confusing and convoluted as residuals may seem, a basic understanding of them will help you be a smarter and savvier writer and professional.
Screenwriter residuals
First, let’s define WGA residuals.
The Writers Guild of America, or WGA, is the union that represents writers in Hollywood. Though they’re split into two branches, the WGA East and the WGA West, they work together on major policies like residual compensation for their members. Therefore, the WGA is the entity that both sets the rates for and distributes residual pay to writers. But what are residuals to begin with?
RESIDUALS DEFINITION
What are residuals?
Residuals are a form of financial compensation paid to a writer after the project they worked on is initially exhibited, so when the film, TV show, or new media they wrote is re-used or re-distributed. Residual pay occurs after, and in addition to, the writer’s initial fee for their contribution to the work.
Writers earn residuals through:
- TV show reruns and/or syndication
- Physical media sales like DVDs and digital rentals
- A streaming show reaching a certain viewership threshold
Do screenwriters get residuals
How do WGA residuals work?
To receive residuals from the WGA, you must be hired to write by a WGA signatory. A WGA signatory is a company that has signed a contract with WGA to abide by their rules and regulations in order to hire its members. You also must have a formal writing credit on the project, despite how much you are paid or what you contribute to the final shooting script. Therefore, if you were paid a fee to rewrite a script but aren’t formally credited as a writer on the project, you won’t receive residuals. Many credits like written by, screenplay by, story by, and created by entitles writers to receive residual pay, with one notable exception – “developed by”.
For a deeper dive on writing credits and what they mean, check out the below breakdown:
WGA residuals and credits
SOURCE MATERIAL VS. SPINOFFS
Given that many projects are adaptations of novels, video games, comic books, and other forms of intellectual property, you may be wondering if the writers of a movie or TV show’s source material get WGA residuals. They don’t, as their compensation for the rights to use their IP is typically negotiated in a separate deal. If the creator of source material or IP contributed to the writing of the script however, they would be entitled to residuals.
For instance, Michael Crichton wrote the novel Jurassic Park, but he also co-wrote the movie’s screenplay with David Koepp, meaning that he would get residual pay. Whereas Winstom Groom, who wrote the source material of Forrest Gump, would not be entitled to residuals since he didn’t contribute to the adaptation of his book to the screen.
Yet in the case of spinoff television shows and movies, screenwriters do get residuals. Therefore, even though Gene Roddenberry passed away in 1991, he (well, his estate) still receives a residual check for any and all Star Trek spinoffs as creator of the original series. Furthermore, if a writer is credited with creating a specific character on a series or in a movie that gets a separate spinoff, they’re also eligible to receive residuals.
A writer’s initial fee typically covers their writing of the script and the project’s initial exhibition – whether that be a movie’s theatrical release, the first broadcast of an episode they wrote on television, or the first month of a project’s window on streaming. Yet when the writer’s project is reused and redistributed, the writer will earn residual payment.
A screenwriter commonly earns residuals through their episode of a series being rerun at home and abroad, or a movie being licensed to be shown on another platform, like a streaming service, or through physical media sales. Therefore, the more a writer’s work is reused, the higher their residual check is.
How much do screenwriters make in residuals
How are WGA residuals calculated?
The number on a screenwriter’s residual check varies greatly depending not only how much their project is reused, but also where it is reused, and what their credit on the project is. The WGA has a slew of set formulas for how much a writer stands to receive when something they wrote is reused in all manners of film, television, and new media distribution. Written by, teleplay by, and screenplay by credits fetch the highest rates for WGA residuals. The rates of residuals diminish over time after the project’s release too.
Things get a little trickier when it comes to the world of streaming. Though writers usually get a very small residual when their show or movie is licensed by a platform, they can also qualify to receive residuals for original projects made for the streaming service. Screenwriters qualify for WGA residuals in this case when the project they wrote is watched by a certain percentage of the platform’s viewership in the first 90 days of its release.
Here;s a more in-depth breakdown of WGA residuals for streaming:
Streaming residual pay for writers
Residuals ensure that a writer is fairly compensated for their work, whenever and however it is reused. Since work in entertainment can be sporadic, residuals provide valuable passive income for a writer as they work on their next script or hustle for their next job. While the Writer’s Guild does a fantastic job of supporting its members, having an understanding of residuals gives you the tools to advocate for yourself and your work as well.
Up Next
WGA Minimums – Writers Pay Explained
Residual payment comes after a project is made and released, but what about a writer’s paycheck upfront when they sell a script or are hired on a TV show? In addition to setting rates for residuals, the WGA also determines the minimum payment a WGA member can receive for writing a script. The Guild outlines these minimums in the WGA MBA (minimum basic agreement), and we’ll outline how this document works to ensure that writers are paid fairly for their work. Once you acquaint yourself with WGA minimums, you’ll have a full picture of how much screenwriters make.
