If the Sch E Royalties are not related to the creator of a performing artist royalty, NO - the income is not considered a Service, Trade or Business.

If the Royalties are related to the actor or song writer that created the Show, Commercial, Music or other performing artist income streat, they should be reported on Sch C and would be eligable QBI, though catagorized as a SSTB.

Page 229 of the Final Regulations, item (v) Example 5 seems to contradict itself (or simply lacks in clarity).  It references a singer / songwriter as a performing artist, of an SSTB, but then concludes the royalties received "for the song are not eligable for a deduction under section 199A".?  I beleive they would be, if the taxpayer is under the SSTB phase out floor, and maybe if in the SSTB phase our range.