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THE MAGIC OF RESIDUALS

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Acting is a job. The biggest difference between working in an ordinary job and working as an actor is that as an actor in film, television, and commercials, you may get paid many times for doing a job once. The first time, you get paid for doing your job; after that, you may get paid each time your part of the show is broadcast again. Each time that a commercial runs on the air, a TV show is rerun, or a film is broadcast on pay-per-view, television networks, or in overseas markets, you get a residual (or royalty). Some commercials and TV shows have buyouts where you may receive no residuals at all. If you’re in a union, fees are set, and residuals may be required unless there is a buyout.

Residuals are money paid to you for the privilege of broadcasting your performance over and over again. Your agent or the union rules usually stipulates the exact percentage of your residuals, although for smaller roles, you may receive no residuals at all.

As an actor, you strive for speaking roles to have the ability to either get in the union or receive residuals for every time it’s shown as per union rules.

Films can go through as many as six stages of distribution, which we outline in the following list. Some films are designed specifically for distribution in the pay-per-view, television (often called a made-for-TV movie), video and digital video disc (DVD) markets, or Internet streaming only.

 Stage 1 — Initial release or first-run: The film appears in major movie theaters across the country. Studios often release a film near a major holiday weekend, such as the Memorial Day weekend, to take advantage of the holiday crowds to maximize profits.

 Stage 2 — Secondary release or second-run: The film appears in smaller theaters.

 Stage 3 — Overseas release: During a film’s first- or second-run, the studio may also release the film to overseas markets.

 Stage 4 — Cable networks: When the film is no longer showing in theatres, it may be sold to a cable network.

 Stage 5 — Rental: The film becomes available to rent on DVD.

 Stage 6 — Television broadcast: The film may be sold and broadcast over one of the major television networks and streaming.

Right before a film appears in theaters, the film’s major actors often appear (at the studio’s expense) on local and national radio and television shows to promote the film. Studios also compile short previews, called trailers, to run before movies in theaters to generate interest in the upcoming film. Studios often make deals or tie-ins with book publishers, toy companies, and fast food restaurants. The book publishers sell a novelization of a screenplay, the toy companies sell action figures of the major characters, and the fast food restaurants give away plastic cups or toys related to a film. By licensing out a film’s characters, a studio can reduce its financial risk and earn back as much money as possible before a film is even released. Many actors may also earn extra money by licensing their likeness to action figures, comic books, or video games as part of any tie-ins that studios may have made with other companies.

By the time a film finally appears in the theaters, many of the actors could already be busy working on other projects.

Television shows follow a different distribution cycle from films. TV shows are usually broadcast once and then rerun one or more times. If a television show is popular, it may be sold into syndication, which means that it may be broadcast in a local or regional market. Each time a syndicated show appears on the air, the principal actors receive residuals.

Special distribution circumstances apply to theatrical productions as well. For example, if a stage play is particularly popular, it can run for several years, providing long-term employment for all the actors involved. During this time, the play may travel around the country or even the world.

In rare cases, a film may be shot, edited, and made ready for distribution only to find that the studio never releases it at all due to legal or other obscure reasons.

Breaking into Acting For Dummies

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