Actor R Madhavan recently in an interview rued about the absence of residuals in the Hindi film industry and said that had the model, which is prevalent in Hollywood, existed in India he would have enough money to feed generations from just three hits—Rang De Basanti (2006), 3 Idiots (2009) and Tanu Weds Manu (2011).

Residuals are like royalties, which are paid out to every person who has worked on a film or show whenever that film or show earns revenue, either on television, streaming, or other distribution avenues. 

During an interview with Akshay Rathi, Madhavan was asked if Shah Rukh Khan’s approach, of turning producer very early in his career in order to maximise profits from his film, was the way to go. To which, the actor stated that one cannot take a one-size-fits-all approach. He said that the “upper echelon” of movie stars can do this, but those that belong to the lower strata of the film industry do not have the same financial security. “If you’re commanding double-digit salaries, the rules that apply to them are different, simply because they have secured their future,” he said.

“Their (A-list stars’) salaries are such that they can afford to life this lifestyle for the rest of their lives. If I was a Hollywood actor, and I had the number of hits that I’ve had in my life, do you think that there would be a second thought before I jumped into (a risky project)? I would jump into it in an instant, because I knew that my future generations are taken care of with just three blockbusters,” he said.

“But when you know that there is no pension, but you’ve built a lifestyle that you need to maintain, then you start thinking paise toh lelo, pata nahi kal milega ke nahi milega (Take the money atleast, you don’t know if you will get it or not). The judiciary has to support the contracts that we sign,” he added.

Madhavan said that if he were a Hollywood star, he’d still be raking in money for some of his hits. “There’s a famous story that Mr Amrish Puri is still getting residuals for the Steven Spielberg movie that he did. If I was a Hollywood actor, two or three films would be enough – maybe 3 Idiots, Rang De Basanti, and Tanu Weds Manu – to feed the rest of my generations if they live sensibly.”