Scarlett is suing… but creators and actors should re-think the way they draft their contracts
The pandemic has also changed the movie business, as the film industry has started releasing new movies for streaming home entertainment at the same time as the movies have their first night at theatres. Hollywood star Scarlett Johansson has now sued Disney for breach of contract for streaming her film Black Widow at the same time as its theatre release.
The background is that the stars traditionally earn more on good ticket box sales and less on streaming, as the streaming contracts used to be seen as secondary sales to start when the audience at the theatres was declining.
The Walt Disney Co. attacked Johansson saying her lawsuit showed a “callous disregard” to the pandemic and indicated that she does not have much to complain about as she has so far received USD 20 million from the project.
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.”
According to The Wall Street Journal though, that was the first one to reveal the lawsuit, sources close to Johansson estimate that the decision to release the film concurrently on Disney Plus resulted in $50 million in lost bonuses.
Together with the actors, the National Association of Theatre Owners, representing the main cinema trade organization, is also keen on clinging to the previous release status-quo, stating that ‘streaming costs Disney money in revenue per viewers, over the life of the film’ – while in reality an increase of the Disney share was reported as a result of the simultaneous release.
According to a statement made by Johansson’s attorney: “It’s no secret that Disney is releasing films like Black Widow directly onto Disney+ to increase subscribers and thereby boost the company’s stock price – and that it’s hiding behind Covid-19 as a pretext to do so. But ignoring the contracts of the artists responsible for the success of its films in furtherance of this short-sighted strategy violates their rights and we look forward to proving as much in court. This will surely not be the last case where Hollywood talent stands up to Disney and makes it clear that, whatever the company may pretend, it has a legal obligation to honor its contracts.”
Regardless of what happens with the specific lawsuit, one thing is certain: artists, studios and streaming giants should definitely reshape the way they draft their rights’ contracts.
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