During the first season of Friends, the 6 cast members each made $22,500 per episode
Here’s how they used a rare negotiating technique to start earning $20 million per year EACH - decades after the show stopped production
Here’s how they used a rare negotiating technique to start earning $20 million per year EACH - decades after the show stopped production
Friends started in 1994 with a 24 episode season.
The 6 main cast members each earned $22,500/episode, or $540,000 total for the season.
But Jennifer Aniston and David Schwimmer emerged as the 2 main stars after season 1, and each were given $40,000 per episode for season 2.
The 6 main cast members each earned $22,500/episode, or $540,000 total for the season.
But Jennifer Aniston and David Schwimmer emerged as the 2 main stars after season 1, and each were given $40,000 per episode for season 2.
However, at the end of season 2, the group of actors switched up their negotiating tactics.
Schwimmer and Aniston could have demanded massive raises, but decided to band together with the other 4 to form a mini labor union.
The studio could have all 6 of them, or none of them.
Schwimmer and Aniston could have demanded massive raises, but decided to band together with the other 4 to form a mini labor union.
The studio could have all 6 of them, or none of them.
Here’s how much actor earned per episode over the next seasons:
S3: $75k
S4: $85k
S5: $100k
S6: $125k
S7: $750k
S8: $750k
S9: $1m
S3: $75k
S4: $85k
S5: $100k
S6: $125k
S7: $750k
S8: $750k
S9: $1m
They stood firm and all demanded the same salary. No doubt Aniston and Scwimmer could've made much more individually, but decided to stick with the group.
The studio could have written one of the actors out if negotiations stalled, but they couldn’t write all 6 out of the show.
The studio could have written one of the actors out if negotiations stalled, but they couldn’t write all 6 out of the show.
While these salaries were pretty juicy, this isn’t even where 99% of their money has been made.
Here’s where the real money was: Syndication
Here’s where the real money was: Syndication
The actors negotiated a percentage of the syndication profits of the show. Syndication is when the studio leases the rights to the show to various TV stations.
Ever seen a Friends rerun on TV? They’re still very common, and the main cast members are still being paid for those.
Ever seen a Friends rerun on TV? They’re still very common, and the main cast members are still being paid for those.
They only collect 2% of the profits, but that still equates to over $20 million per year per actor.
The studio still collects over $1 billion in revenue per year from Friends.
Talk about a strong recurring revenue stream.
The studio still collects over $1 billion in revenue per year from Friends.
Talk about a strong recurring revenue stream.
What’s the lesson for creators?
Being paid for your initial labor is good, but the ideal is to also be paid based on the success of your content.
Creators should think not just about getting paid for their work, but ensure they have upside in their performance.
Being paid for your initial labor is good, but the ideal is to also be paid based on the success of your content.
Creators should think not just about getting paid for their work, but ensure they have upside in their performance.
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workweek.com/perpetual
workweek.com/perpetual
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