July 30, 2021

ScarJo Lawsuit Marks Turning Point in War Between Cinemas and Streaming

by Brendan Pike

LOS ANGELES - Scarlett Johansson, star of the latest Marvel blockbuster release “Black Widow”, filed a lawsuit against Disney on Thursday for a reported $50 million in lost bonus payments.

Johansson’s suit alleges that Disney’s decision to release the film concurrently in theaters and on its Disney+ platform in July was in breach of her contract and undercut its box office revenue. The suit claims claims that Johansson’s compensation was largely based on the box office success of the film, and that the dual release strategy was designed to benefit the media conglomerate in growing subscribers on Disney+ and boosting their stock price.

The Walt Disney Co. fired back on Thursday, accusing its titular star of having a “callous disregard” for the Covid-19 pandemic and disclosing that Johansson has already received $20 million for her work on the film. A Disney spokesperson said, “There is no merit whatsoever to this filing. The lawsuit is especially sad and distressing in its callous disregard for the horrific and prolonged global effects of the Covid-19 pandemic. Disney has fully complied with Ms. Johansson’s contract and furthermore, the release of “Black Widow” on Disney+ with Premier Access has significantly enhanced her ability to earn additional compensation on top of the $20M she has received to date.”

Johansson’s lawsuit, however, cites a provision in her contract that declares there would be a “wide theatrical release of the Picture i.e., no less than 1,500 screens.” When the film’s updated release strategy was announced in response to the ongoing Covid-19 pandemic, the “Black Widow” star’s representatives attempted to renegotiate with Marvel, but those requests were ignored.

“Black Widow” made $80 million at the domestic box office in its opening weekend, but saw a 67 percent drop the following week, marking the most dramatic decline in the history of the Marvel Cinematic Universe brand. The National Association of Theatre Owners blamed the hybrid release strategy for the box office drop, issuing a statement saying that “simultaneous release is a pandemic-era artifact that should be left to history with the pandemic itself.”

Johansson’s bold move comes at a turning point with regard to how studios and talent negotiate amidst the battle between cinemas and streaming, as the Covid-19 pandemic accelerated an already complicated landscape. The Walt Disney Co. is not alone in their decision to test the waters with a dual release strategy, and WarnerMedia’s decision to debut its 2021 slate of films both in theaters and on HBO Max has seen some financial success. The summer films with the greatest longevity, though, are Paramount’s “A Quiet Place: Part II” and Universal’s “F9"; both films opened only in theaters, signifying that audiences will mold with whatever options the studios make available to them.

Johansson is currently attached to produce Disney’s “Tower of Terror”, set to be developed as a starring vehicle. Details of how the biting lawsuit may affect the project remain to be determined.