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HomeEntertainmentWhat are residuals? They're a major part of the Hollywood strike.

What are residuals? They’re a major part of the Hollywood strike.

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As long as there have been strikes, those strikes have been about wages and conditions. The historic double walkout that ground Hollywood to a standstill this week is no exception.

But this movement is also tied to a modern phenomenon: the way streaming giants such as Netflix and Disney Plus have reshaped the entertainment industry.

Leaders of Screen Actors Guild-American Federation of Television and Radio Artists (SAG-AFTRA) voted Thursday to join the Writers Guild of America (WGA), which has had a weeks-long strike against major studios, arguing that the streaming era has allowed them to cut workers out of profits.

SAG-AFTRA and WGA say this new age of entertainment has eaten into a significant portion of actors’ and writers’ income. And when it comes to money, the unions have one issue in particular on their minds: residuals.



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