How do movie royalties (residuals) work over the long term?
Take a relatively old movie – the Dirty Dozen – that plays on TV fairly frequently.
That movie had 8–10 big-name actors, and then a bunch of lesser known ones. Of course, they all got paid when the movie was first made. But what about now? Does Ernest Borgnine’s estate get paid some amount every time that the movie plays on TNT? What about the lesser actors?
I’m sure more recent movies compensate better – but take Brad Pitt and Angelina Jolie in Mr. and Mrs. Smith – that still plays from time to time on HBO. Do they get paid each time? And for how long?
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