SAG-AFTRA's deal with the AMPTP will give union members $120 million in streaming participation bonuses over three years.

That's $40 million a year, according to the union's chief negotiator, Duncan Crabtree-Ireland, Variety reported.

SAG-AFTRA president Fran Drescher initially asked for 2%, then lowered it to 1% or approximately $500 million annually. The union came back with a proposal for a 57-cent fee per subscriber. The AMPTP refused but granted the bonus instead.

In an interview, Crabtree-Ireland said, “We were never expecting that would be the ultimate number. On the other hand, adding something that is worth $120 million over the term of the contract is significant.”

The residuals that actors receive for made-for-streaming shows are at a fairly low level. For example, for a one-hour episode on Amazon show, an actor would receive at most $2,000 in the show's first year of reuse.

However, if it were a broadcast network episode, that amount would go up to $3,600 annually. This amount could also increase if that episode were to be repeatedly run in one year.

“We have to find the pocket of that money, so we get our rightful share because we’re building this platform and they are building the business on us,” Drescher said.

SAG-AFTRA streaming participation bonus: A quick math

The $40-million-annual bonus is modeled after that of the WGA's. For the writers' union, writers on successful shows on a streaming platform will receive a 50% bonus on the standard residual checks.

The studios define “successful” shows as those that get views equivalent of 20% of the platform's subscribers in the first 90 days that a show released.

SAG-AFTRA's deal works almost the same way, with the exception of the bonus being 100% of an actor's residual check. However, the actor will not be receiving the entire amount of it. A portion will go to a jointly administered fund by both employers and SAG-AFTRA.

The money in that fund will be distributed to actors on different streaming shows, not just the ones who are deemed “successful.” It works similarly to the revenue-sharing method the union proposed — only with much less money involved.

The joint fund trustees will decide how to distribute the money. Crabtree-Ireland stated that it will be similar to the union's music and commercials funds.

The $40 million amount is just an estimate, though, since the studios have to monitor how many of the shows will meet that viewership threshold in order for its actors to qualify.

If we follow the studios' definition of “success”, a quick math would show that for a Netflix series actor to qualify, their series would have to have 15.46 million views in the U.S. and Canada in the first 90 days.

Both the WGA and SAG-AFTRA will closely monitor how this system works in practice. Since the deal is for three years, they can prepare for the next negotiation in 2026.