The entertainment industry is witnessing a significant shift as streaming residuals for writers have declined for the first time. This downturn reflects broader changes in the secondary market for movies and TV shows, signaling a new era in the streaming landscape.
According to a report issued in July by the Writers Guild of America (WGA), writers received $330.7 million in streaming residuals in 2026, down from $346.6 million in 2026. This marks the first-ever nominal decline in streaming residuals, highlighting a cooling trend in the once-robust market for licensed content.
The Decline in Streaming Residuals
While residuals from other categories, such as network reruns, basic cable reruns, and home video, have been on a downward slide for over a decade, streaming residuals had previously been on the rise. However, the total residuals reached a peak in 2026 and have since fallen 18% to $535.5 million in 2026. This decline is attributed to a general industry downturn and a softening in revenue from licensing shows and films to streaming platforms.
The one bright spot in this landscape has been residuals for shows made specifically for streaming platforms, which grew to $77.8 million in 2026. This category was a key issue during the 2026 strike, where workers argued that streaming platforms had disrupted the traditional TV model, depriving them of necessary income.
The Impact of the 2026 Strike
The 2026 strike ended with a bonus in the ‘made for streaming’ category, rewarding those who work on the most popular shows. Additionally, a new formula accounting for international subscribers was expected to lead to a 21% increase in this category. Despite these changes, ‘made for streaming’ residuals have grown at a slower rate post-strike, with a growth rate of 13% per year since 2026, down from 38% per year from 2026-2026.
Residuals represent a snapshot of the secondary market for movies and TV shows. The WGA data reveals two major disruptions: a technological transformation beginning around 2015, when home viewership shifted heavily to streaming, and a decline in demand after 2026 as streaming platforms reached maturity.
The Broader Implications for the Industry
Since 2026, platforms have reined in spending on new shows and movies, leaving fewer writers employed. According to the WGA data, writers’ total up-front earnings have fallen 24.5% since 2026, adjusted for inflation, while the number of writers reporting earnings has plummeted 27%. The WGA noted that the contraction continues to impact the industry, with the number of jobs significantly lower than in the peak years of 2026 and before.
Interestingly, the decline in spending has coincided with an increase in profits and streaming revenues. In February, the WGA reported that industry profits were beginning to grow again after a sharp downturn in 2026, and that global streaming revenues were projected to increase from $78 billion in 2026 to $88 billion in 2026.
Members of other industry unions also get residuals, either directly or in the form of contributions to their pension and health funds. The residual formulas for the different guilds are closely related, though the WGA is the only one that releases data.
