Last week, Scarlett Johansson filed a lawsuit in the Los Angeles Superior Court against the Walt Disney Corporation. The suit in question was for a breach of contract relating to the release of Marvel Studios’ “Black Widow,” which opened both in theaters and on the streaming service Disney+ on July 9. The film was expected to be one of the biggest blockbusters this summer (and it is). But the actress’s pay is tightly linked to the film’s box office performance. So, she’s taking a stand against the studio’s distribution decisions. And the outcome of ScarJo vs. Disney could affect actors, studios and even streaming platform customers.
How a streaming release affected the payout
Johansson was promised that her film “would initially be released exclusively in movie theatres and that it would remain exclusively in movie theaters for a period of between approximately 90 and 120″ days.
But revenue streams get murky with the $30 premium on Disney+, which primarily pays executives at Disney instead of filmmakers and performers, such as Johansson. The convenience of watching the film from the comfort and safety of one’s own home cut away at Johansson’s earnings, which were likely not a clear expectation she had when signing the contract back in 2019.
Based on Disney’s reported earnings, “Black Widow” made $60 million from streaming alone, without the middle-man of the movie theater. While this strategy is more lucrative for Disney, it hurts practically everyone else, from the theater owners to the cast. As a result, Johansson missed out on due compensation because Disney prioritized the influx of Disney+ subscribers and stockholders over their contracts.
How the outcome could affect film distribution
The ScarJo vs. Disney lawsuit could shape film distribution. If Johansson loses, that power and control continue to slip further into the hands of corporate Hollywood, and the future of distribution moves closer to the streaming takeover. If Disney can accumulate a disproportionate amount of revenue by releasing “Black Widow” on Disney+ on the same day as theaters, who’s going to stop them from doing it again? But if Johansson were to win this suit, Disney would need to reevaluate their contract strategy to include a streaming release, which would likely change some of the pricing and convenience conditions of streaming. So, ultimately, this lawsuit decision trickles down to the viewers as well.
How the outcome would affect actor-studio relationships
The lawsuit also has raised several questions about how corporations are expected to engage with entertainers. On the one hand, they have a business to run: The name of the game is to make money and service your customers/shareholders in any way you can. On the other hand, contractual agreements clearly state what the two parties should expect, and they can work as a form of protection in these situations. Will the corporation be held accountable? If Johansson wins, this decision would empower stars and entertainers and give them a newfound sense of control over their careers. Overall, it is crucial to outline the relationship between entertainers and the business-legal side of entertainment.
Does Scarlett Johansson have a good case here? Will Disney change up their strategy and pay up? When will entertainers feel in control of their careers again?
