What is a residual?

• A. A one-time upfront payment to crew
• B. Automatic union payments for the reuse of a film/television product that are paid to creatives
• C. A tax deduction for production costs
• D. A bonus paid for commercial success

Answer: (B)

Residuals are ongoing payments to performers, writers, directors, and other creatives when a film or television work is reused or redistributed beyond its original release. They’re typically mandated by union or guild contracts, so these payments are automatic when the work is licensed for new uses—like reruns, syndication, streaming, or home video sales. The amount and eligibility come from specific agreements and depend on factors such as distribution method, territory, and the person’s role.

This is why the option describing automatic union payments for the reuse of a film/television product paid to creatives best captures what residuals are. It’s not a one-time upfront fee, a tax deduction, or a bonus tied to commercial success.