What is syndication and why did tv shows used to pump out so many episodes trying to get it?
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When you make a TV show you have a contract with one network. However after you reach a certain number of episodes, usually 100, your show can then be shown on other networks, which is called syndication. So for example Law & Order ran on NBC, but because it entered syndication reruns are shown on a bunch of channels.
The reason that people want a show to reach syndication is because you can make a lot of money. In fact there are a number of shows where actors make more money from syndication than they did from the show. There’s two ways this happens. The first is that the Screen Actors Guild (SAG) has what is called a “residuals schedule,” basically an agreement about how much actors get paid for reruns. This is around 6% of your salary per episode. So, for example, the principal cast of Law & Order each make around $200,000 a year from residuals, which is good money.
The second way is that you can have part of your contract say that you are entitled to royalties, which is even more money based on the success of the show. For example the six principal stars of Friends each make around $20 million a year just from reruns and Jerry Seinfeld has made more than $400 million from Seinfeld reruns.
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