We help Australian producers calculate their payment obligations to performers and meet reporting obligations. We can also take care of payments to performers.
WHAT ARE RESIDUALS?
Residuals are a form of royalty payment for performers. Residuals mean performers benefit financially in a show’s success when it sells well. Payments are calculated on the basis of sales performance domestically and globally using rules that are set out in industry negotiated agreements.
We refer to these payments as ‘Residuals’ for simplicity. It’s easier this way!
Residuals – as a generic term – covers Repeat Fees, Ancillary Usage Fees and Residuals fees for TV and online, and Australian Free Television Residual Fees, Making-Of Residual Fees, North American Residual Fees, Performer Net Profit Entitlements and US Network Residual Fees for feature films.
For many producers it can be quite daunting to work through these agreements to calculate payment obligations with certainty. We’re here to take that pain away.
In Australia, payment obligations to performers arise under the agreements that have been negotiated between Screen Producers’ Australia (SPA) and Media Entertainment and Arts Alliance (MEAA). The key agreements for residuals in Australia are:
- TV & Online: Australian Television Repeats and Residuals Agreement (ATRRA)
- Features: Australian Feature Film Collective Agreement (AFFCA)
The ATRRA covers Serial Drama, Serial Comedy, Series Drama and Series Comedy (other than variety), pilots and single drama or comedy programs for TV exploitation, SVOD and online.
The mechanisms for calculating residuals payment obligations vary depending on characteristics about the show – including type, duration and year produced – as well as the type, territory and volume of sales.
Screenrights works with producers to appropriately classify shows, track sales performance, calculate residuals payment obligations and allocate residuals to individual performers. We can also assist in making payments.
We partner with screen businesses to calculate residuals payments for performers based on sales made in Australia and around the world.
How can we help you?
Let others be across the details – but still have the confidence your performers are being looked after.
We decipher the industry agreements to ensure residuals obligations are calculated accurately and reported to MEAA in an accepted format.
Play your role in a thriving local industry by paying performers quickly and accurately.
We can pay performers directly or via MEAA, or a mix of both.
Free your energy to focus on telling compelling stories.
We handle the calculations and reporting in accordance with contracts, industry agreements and taxation law. You can set and forget.
TYPES OF RESIDUALS
Covered by ATRRA
Australian Ancillary Usage Fees are payable to performers in a program when sales are made in Australia, such as video-on-demand, home entertainment and airline. It excludes TV broadcast licence income and theatrical receipts.
Repeat Fees are payable to performers in a program when subsequent plays are licensed for broadcast in Australia on either free-to-air or PayTV.
Residual Fees are payable to performers in a program when sales are made outside of Australia, including both broadcast licence income and ancillary usage (such as video-on-demand, home entertainment and airline).
Covered by AFFCA
Australian Free Television Residual Fees are payable to MEAA on behalf of performers in feature films for each screening of the film on free-to-air television in Australia subsequent to the expiry of pre-purchased loading rights.
Making-Of Residual Fees are payable to MEAA on behalf of performers in feature films for all proceeds derived from a Making-Of film about the feature film.
North American Residual Fees are payable to MEAA on behalf of performers in feature films for the exploitation of free television rights (excluding to US Networks), PayTV rights and ancillary rights in the United States and Canada, excluding receipts earned in the initial four years of exploitation in North America.
Performer Net Profit Entitlements are payable to MEAA on behalf of performers from the producer’s share of net profits once the film has gone into profit.
US Network Residual Fees are payable to MEAA on behalf of performers in feature films for each screening of the film by a US network.