AIMEG Residuals & Revenue Share Guide

For AI-Assisted Media Productions

1. Introduction

Residuals are payments made to creative workers for the reuse of their work beyond the initial exhibition. In the AI era, where human creative direction underpins machine-generated output, AIMEG establishes clear residual obligations to ensure creators participate in the long-term success of their productions.

This guide covers residual structures for theatrical, streaming, television, digital, and commercial productions.

2. Residual Philosophy

AIMEG's residual framework is built on three principles:

1. Creative Contribution: Humans who direct, curate, and supervise AI systems contribute creative value that persists through every reuse.
2. Sustainable Careers: Residuals enable creative professionals to build sustainable livelihoods, not just one-time payments.
3. Transparency: Residual calculations must be transparent, auditable, and based on real revenue data.

3. Covered Roles & Residual Eligibility

The following roles are eligible for residuals on AIMEG-certified productions:

Base Rate: The residual percentage assigned to the production based on budget tier and distribution category (see below).

4. Theatrical Residuals

4.1 Trigger

Theatrical residuals are triggered when a production generates net theatrical receipts exceeding $500,000.

4.2 Calculation

Residual Pool = Net Theatrical Receipts × Theatrical Residual Rate

Net Theatrical Receipts = Gross Box Office
                          - Distribution Fees (typically 25-30%)
                          - Marketing Recoupment (capped at 150% of production budget)
                          - Exhibition Costs

4.3 Distribution

The Residual Pool is distributed pro-rata based on each covered role's compensation relative to total covered compensation.

Example:

• Production budget: $5M (Standard Budget)
• Net theatrical receipts: $8M
• Residual Pool: $8M × 3.5% = $280,000
• Total covered compensation: $400,000
• Creative Director earned $50,000 (12.5% of covered comp)
• Creative Director residual: $280,000 × 12.5% = $35,000

4.4 Payment Schedule

• Initial payment: 30 days after theatrical release quarter-end
• Subsequent payments: Quarterly, within 45 days of quarter-end
• Final accounting: Within 90 days of end of theatrical run

5. Streaming / OTT Residuals

5.1 Trigger

Streaming residuals are triggered when a production reaches 50% recoupment of its production budget from streaming revenue.

5.2 Calculation

Residual Pool = Net Streaming Revenue × Streaming Residual Rate

Net Streaming Revenue = Gross Licensing/Revenue Share
                        - Platform Fee (capped at 30%)
                        - Delivery Costs

5.3 Performance Bonus (Viewership)

In addition to base residuals, covered roles receive performance bonuses:

Completed View: A view where at least 70% of the runtime was watched.

5.4 International Streaming

International streaming revenue is included in residual calculations at the same rates. Currency conversion uses the average exchange rate for the payment quarter.

5.5 Payment Schedule

• Quarterly, within 60 days of quarter-end
• Production must provide certified revenue statements
• AIMEG reserves audit rights

6. Television Residuals

6.1 Domestic Reruns

For AI-assisted television series:

6.2 Foreign Reruns

Foreign rerun residuals are 50% of domestic rerun rates for the same episode.

6.3 Streaming of TV Content

When TV episodes are subsequently streamed, the streaming residuals formula (Section 5) applies, with a floor of $200 per covered role per episode per streaming year.

7. Digital / Social Media Residuals

7.1 Ad-Supported Platforms (YouTube, TikTok, etc.)

For AI-assisted content on ad-supported digital platforms:

Residual Pool = Gross Platform Revenue × 5%

Gross Platform Revenue = verified ad revenue + brand partnership revenue directly attributable to the content.

Distributed pro-rata to covered roles.

7.2 Subscription Digital Platforms

For content on subscription digital platforms (Patreon, Substack, etc.):

Residual Pool = Net Subscription Revenue × 3%

Paid quarterly.

8. Commercial Residuals

8.1 Structure

Commercial residuals are usage-based, determined by:

• Media type (broadcast, cable, digital)
• Territory (national, regional, local)
• Duration of use (13-week cycles)

8.2 Base Rates per 13-Week Cycle

8.3 Wild Spots & Negotiated Usage

For negotiated or unlimited usage, a buyout may be negotiated. Maximum buyout:

• Per creator per spot: $15,000
• Per spot total (all covered roles): $45,000

9. ADL-4 Residual Pool Contribution

Productions classified as ADL-4 (highly automated, minimal human intervention) must contribute an additional 2% of gross revenue to the AIMEG Creator Residual Pool.

This pool is distributed quarterly to all AIMEG members who have accumulated certified production hours in the preceding quarter, pro-rata based on hours worked.

Purpose: Ensure that as AI automation increases, the benefits are shared across the creative community, not concentrated in production company profits.

10. Reporting & Audits

10.1 Production Reporting

Certified productions must submit:

• Quarterly revenue statements (theatrical, streaming, digital)
• Certified payroll records
• Residual calculation worksheets

10.2 Audit Rights

AIMEG may audit production financial records:

• Random audits: 5% of productions annually
• Complaint-driven audits: unlimited
• Audit cost borne by production if underpayment exceeds 5%

10.3 Late Payments

• 1-30 days late: base amount + 1% interest
• 31-60 days late: base amount + 2% interest + $500 penalty
• 61+ days late: base amount + 3% interest + $1,000 penalty + potential decertification

11. Dispute Resolution

Residual disputes are resolved through AIMEG arbitration:

1. Written notice of dispute within 1 year of payment due date
2. Informal resolution period: 30 days
3. Formal arbitration: single arbitrator, binding decision within 60 days
4. Prevailing party entitled to reasonable legal fees

Effective Date: May 18, 2026
Next Review: July 1, 2026
Contact: residuals@aimeg.net