An overdue update:
A couple of years back, when MST3K: The Return was still a Kickstarter campaign, I talked about the lack of royalties most of the show's writers and cast members received from episode sales when the show was still owned by Best Brains, Inc. I noted that Rifftrax shared profits from its MST3K episode sales with all the principals, and expressed my hope that the show's new owner, Shout! Factory, would do the same.
I've been meaning to update that post, and have finally gotten around to it, because I found out some time ago that Shout! Factory does indeed pay royalties to the former MST3K cast members. Here's from the FAQ from The Mads are Back (currently an archive.org link, as the site is down as of this writing):
It was previously stated on this site that Shout Factory was not paying us any royalties for the classic episodes of MST3K. That was completely and totally untrue. Don't know how that slipped by, but Shout has been nothing but kind and generous with us. If you have attended our live shows, you know that they give us lots of boxed sets and DVD’s of the show to hand out to fans.
It's also notable that Mary Jo Pehl and Bill Corbett, who had complained about the lack of royalties in previous interviews, both returned to write for and appear on the new MST3K, so it would appear that they're satisfied with the new arrangement.
So please, rest assured that if you're buying your MST3K episodes from any legal source, whether that's Rifftrax, VHX, or a DVD set on Amazon, the cast members are getting a cut. (I'm not sure about streaming subscription sites like Netflix, but I'm guessing, and hoping, that Shout! shares the profits from those sites too.)
And I'll have more on the Mads later. (Or earlier, since I'm planning on repurposing a Brontoforumus post.)