Here are a few relevant questions and answers, we will update our FAQs periodically. If you have a topic of discussion that you would like to be included please contact us.

Q – What are residuals?

A – Residuals are financial returns to Performers when the content starts to make money through its distribution. Residuals may be referred to as “repeat” fees, “royalties” or “usage fees in some instances.

Q – How are my residuals calculated?

A– There are multiple factors that contribute to what residual payment amounts you will receive. These include the length of time you worked on the production, genre of production, number of episodes, type of distribution revenue received Digital, DVD Program Sales etc, location of distribution sale local or overseas, withholding tax, year of production and the production agreement.

Q – Should I expect residuals each time I work on a production?

A – No, as in many cases productions do not earn enough revenue so as to trigger residuals payments.

Q – You mention that residuals management and equity disbursement management are linked, please explain?

A -If a production starts to earn returns from its distribution, these returns are remitted into a collection account in most cases, and then disbursed to the Producer and the Investors in the program. Before disbursement occurs the Producer if agreed is entitled to recoup its residual payment obligations as an expense before such disbursement. However if they disburse before they have calculated their residuals there may not be funds in the collection account to then pay the performers. Therefore its important to ensure the proportion of funds that relates to residual payments is withheld before equity return.

Q – Does CIM Agency manage both residuals and equity management and what are the advantages?

A– Yes, we believe it makes perfect sense to undertake both these services. If you have a collection agency managing disbursement, someone else managing residuals whether it be the Producers in-house or outsourced it increases the risks associated with content management. Advantages from having this aspect of your business under one roof is reduced risk in the delay of payments both to the cast and their agents along with the equity investors.

Q – The administration fees are quite low, how?

A– Having a low cost business structure has allowed us to pass this saving on to our clients along with providing a competitive edge and flexibility. We provide an option to what already exists to our clients.