SAG-AFTRA Streaming Deal Details That Changed Everything
- 01. What the 2023 SAG-AFTRA streaming residuals deal entails
- 02. How streaming residuals changed under the 2023 deal
- 03. What happens to the streaming bonus money
- 04. Key changes to legacy and foreign residuals
- 05. Impact on minimum wages and budget thresholds
- 06. Producer obligations and reporting requirements
- 07. Stunt, TV-film, and network TV residuals
- 08. Practical examples for actors and producers
What the 2023 SAG-AFTRA streaming residuals deal entails
The SAG-AFTRA streaming residuals agreement 2023 is a central piece of the broader 2023 TV/Theatrical Agreement that ended the 118-day strike with the Alliance of Motion Picture and Television Producers (AMPTP). It replaces many pre-streaming models with a hybrid system that keeps traditional rerun-style residuals while adding a new, performance-based "success" bonus tied to streaming viewership thresholds. The new structure is designed to deliver more than $1 billion in fresh compensation and benefit-plan funding over the life of the contract, with the largest gains concentrated in stronger streaming residuals and higher minimum wages for principal performers and background actors alike.
How streaming residuals changed under the 2023 deal
Under the 2023 framework, streaming residuals now operate on two tracks: legacy residual formulas (for TV reruns and limited theatrical runs) and a new "viewership-based" bonus for high-budget streaming titles. The union abandoned its original push for pure revenue-sharing in favor of a bonus that vests when a show or film reaches at least 20% of a platform's domestic subscribers within the first 90 days of release. This mirrors a similar structure in the Writers Guild of America (WGA) agreement, though SAG-AFTRA's bonus is set at 100% of the underlying fixed residual rather than 50%.
- For high-budget SVOD programs (one-hour or more), the residual payment vests when 20% of a service's domestic subscribers watch the title within 90 days of premiere.
- Instead of compensating every title equally, the model targets "hit" shows and films, creating a success-based bonus on top of the base contractual residual.
- Streaming "views" are defined as total viewing hours divided by the project runtime, so a 60-minute film watched for 1.2 million minutes counts as 20,000 "views."
- Producers must now report quarterly U.S. and Canadian streaming hours and, where available, foreign hours-an unprecedented transparency requirement for streaming inspections.
What happens to the streaming bonus money
The new streaming bonus structure allocates 75% of the bonus value directly to the performers on the qualifying title and channels the remaining 25% into a jointly-trusteed distribution fund informally dubbed the "Robin Hood Fund." This fund is overseen by SAG-AFTRA and AMPTP and is intended to redistribute money to other performers who may have worked on less-watched titles, thereby broadening the share of performers who benefit from the streaming economy. By design, the bonus is not a flat percentage of revenue but a defined, fixed-fee addition to the base residual schedule.
- Once a title clears the 20% subscriber threshold, the studio calculates the fixed residual amount for that episode or film.
- The studio then pays a bonus equal to 100% of that fixed residual, bringing the total residual value to 200% of the original.
- Performers on the qualifying project receive 75% of this bonus, while the remaining 25% feeds the distribution fund for later allocation.
- The fund's exact distribution rules are still being finalized, but the intent is to support performers whose work does not reach the 20% threshold.
Key changes to legacy and foreign residuals
The 2023 agreement also upgrades traditional TV residuals for reruns, foreign broadcasts, and other ancillary windows, clawing back some of the ground lost during the transition to streaming. Network prime-time rerun ceilings and certain formulas remain unchanged from the 2020 TV contract, but the cap on residuals has been raised by 2.5%, and grandfathering of older formulas has been eliminated to ensure that all new work moves forward under the same structure. Foreign residuals are now tied to a dynamic scaling factor based on the number of foreign subscribers, which increases the effective payout as a platform's global footprint grows.
| Residual category | Old formula/key figure | 2023 adjustment |
|---|---|---|
| Network prime-time rerun cap | 2020 ceiling amounts | Ceiling raised by 2.5%; no grandfathering for new contracts |
| Foreign subscriber factor | Flat 35% of domestic residual | Variable factor: 47%-90% depending on foreign subscriber tiers |
| SVOD subscriber factor (domestic) | 20%-40% minimum for some tiers | 65% becomes the lowest domestic subscriber factor starting July 1, 2024 |
| High-budget SVOD profit participation | Limited or no gross receipts residual | Introduction of gross receipts residuals for high-budget SVOD films 66+ minutes |
Impact on minimum wages and budget thresholds
In parallel with the residual changes, the 2023 contract delivers historic wage increases for both principal and background performers. The deal includes a 7% wage hike upon ratification and an additional 4% increase effective July 1, 2024, representing a compounded first-year boost of roughly 11.28% for many covered roles. Background actors receive an 11% raise effective November 12, 2023, followed by subsequent increases of 4% in July 2024 and 3.5% in July 2025, significantly tightening the gap between background and principal pay scales. These raises are tied to the same high-budget SVOD programs that also trigger the new viewership-based bonus, ensuring that rising wages are linked to the platforms' strongest revenue streams.
Producer obligations and reporting requirements
To enforce the new streaming residuals regime, the agreement places concrete reporting burdens on producers and distributors. Starting July 1, 2024, studios must provide the total number of hours that a title streamed on their U.S. and Canadian SVOD platforms during the prior quarter, and, where available, equivalent foreign-service hours. Quarterly streaming inspections are now conducted annually rather than semi-annually, with 30 days' notice instead of 10, giving the union more time to prepare and scrutinize data. Combined with the defined view-count formula (total hours viewed divided by runtime), these requirements create a more auditable, data-driven foundation for calculating streaming residual payments.
Stunt, TV-film, and network TV residuals
The 2023 residuals package also addresses long-standing gaps in coverage for specific talent categories. Stunt coordinators now receive fixed residuals for work on television and new-media productions, closing a historic blind spot that had left many coordinators without downstream compensation. High-budget SVOD movies of at least 66 minutes qualify for a rudimentary form of gross-receipts residuals, approximating the traditional theatrical model for top-tier films released directly to streaming. For network series, the agreement relaxes the old "first three episodes" rule, allowing residual payments to be triggered on any three episodes (up to 25% of the total order) when a series airs on broadcast networks such as ABC, CBS, FOX, NBC, The CW, or MyNetworkTV.
Practical examples for actors and producers
For a principal actor on a high-budget SVOD drama, the 2023 deal means that if the show reaches 20% of the platform's domestic subscribers within 90 days, the studio pays a bonus equal to 100% of the base residual, with 75% flowing to the performer and 25% going to the distribution fund. For a background actor on a top-tier series, the same title may trigger a smaller but still meaningful bonus, while wage hikes scheduled through 2025 further compound the gain. For independent producers using the codified basic TV agreement, the higher minimums and expanded streaming windows mean that total compensation packages for actors now sit roughly 12-15% above 2022 levels, depending on budget tier and subscriber counts.
Expert answers to Sag Aftra Streaming Deal Details That Changed Everything queries
What is the main goal of the SAG-AFTRA 2023 streaming residuals agreement?
The primary goal of the SAG-AFTRA 2023 streaming residuals agreement is to modernize the union's compensation model for the streaming era by replacing or supplementing older TV-rerun formulas with a viewership-based bonus system. It seeks to ensure that performers on high-budget SVOD titles receive additional compensation when their work reaches a substantial share of a platform's subscribers, while also raising base wages and benefit plan contributions across the board.
How is a streaming "view" counted under the 2023 deal?
Under the 2023 streaming residuals model, a "view" is defined as the total number of hours a title is watched, divided by the project's running time. For example, a 60-minute film watched for 1.2 million minutes would register as 20,000 views. This metric is used to determine whether a title reaches the 20% subscriber threshold needed to trigger the success-based bonus.
What happens to the 25% of the streaming bonus that actors don't receive?
The 25% of the streaming bonus that does not go directly to performers on a qualifying title is deposited into a jointly-trusteed distribution fund controlled by SAG-AFTRA and AMPTP. This fund is designed to support other performers, especially those whose work does not reach the 20% subscriber threshold, by redistributing a portion of the success-based bonus across a broader pool of members.
Do the 2023 changes affect background actors?
Yes, the 2023 residuals and wage package significantly affects background actors by combining new residual structures with historic wage hikes. Background performers receive an 11% increase effective November 12, 2023, followed by additional raises of 4% in July 2024 and 3.5% in July 2025, alongside the same underlying streaming bonus eligibility as principal performers for projects that meet the 20% subscriber threshold.
How do foreign residuals differ now versus before 2023?
Prior to 2023, many foreign residuals were calculated at a flat percentage (often around 35%) of the domestic residual, regardless of a platform's international subscriber base. Under the 2023 agreement, foreign residuals now use a tiered factor that scales from 47% to 90% depending on the number of foreign subscribers, which increases the effective payout as the service's global footprint grows.
What are the key dates for the 2023 TV/Theatrical Agreement?
The 2023 TV/Theatrical Agreement was tentatively ratified by the SAG-AFTRA National Board on September 27, 2023, after 118 days on strike. Members voted to approve the contract from November 13 to December 6, 2023, with ratification finalized on December 7, 2023. Key wage increases and streaming provisions-such as the 65% minimum domestic subscriber factor-take effect at staggered dates between November 2023 and July 1, 2025.