Scarlett Johansson Sues Walt Disney Co. Over Day And Date Release Of ‘Black Widow’ In Theaters And On Disney+
Scarlett Johansson filed a lawsuit on Thursday against The Walt Disney Co., claiming that the studio breached her contract by releasing the Marvel movie Black Widow on Disney+ at the same time it was released in theaters.
The breach of contract lawsuit (read it here) was filed in Los Angeles Superior Court.
The lawsuit claims that, by steering audiences to Disney+, the media conglomerate wanted to grow its subscriber base and boost its stock price. Yet that was at the expense of Johannson, whose compensation would “largely be based on box office receipts,” according to the lawsuit, while she “extracted a promise from Marvel that the release” of Black Widow would be a theatrical release.
The lawsuit also claims that “Disney’s financial disclosures make clear that the very Disney executives who orchestrated this strategy will personally benefit from their and Disney’s misconduct,” as it identifies Disney CEO’s Bob Chapek’s equity grants “totaling 3.8 times his $2.5 million base salary” in 2021, with the “primary justification” for that award being the launch of direct-to-consumer services. The lawsuit also notes that Disney executive chairman Bob Iger received the “overwhelming majority” of his $16.5 million compensation in the form of stock grants, with the company’s annual report citing the growth of Disney+.
RELATED STORY
'Hawkeye' Disney+ Series Sets Thanksgiving Stretch Launch
“In short, the message to—and from Disney’s top management was clear: increase Disney+ subscribers, never mind your contractual promises, and you will be rewarded,” the lawsuit states.
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Kasowitz Benson Torres LLP’s John Berlinski, Johansson’s attorney, said in a statement, “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.”
The company did not immediately respond to a request for comment.
The Wall Street Journal first reported on the filing of the lawsuit.
“Black Widow”Everett
Even though Black Widow posted the best domestic opening at the box office with $80.3M, many in the industry believe money was left on the table with Disney not only crushing the theatrical and PVOD window, but leaving the Marvel movie open up for piracy — and pirated it was. Black Widow according to TorrentFreak has been the No. 1 pirated movie since its opening on July 9. Disney attempted to herald the pic’s opening weekend revenue for the film, saying it made a combined global theatrical and Disney+ Premier PVOD take of $218M ($60M WW PVOD + $158M WW global B.O. debut). Disney plans to trumpet similar PVOD and B.O. stats this coming weekend for their Dwayne Johnson-Emily Blunt movie Jungle Cruise which is also available on Disney+ Premier for $29.99. However, Black Widow dropped 68% in its second weekend, the worst ever for a Disney Marvel movie, indicating that piracy and PVOD had cannibalized the title. The results prompted the National Association of Theatre Owners to publicly slam Disney for crushing the window. Black Widow will be lucky to make $350M WW at the end of the day at the box office, a far cry from the $700M WW which Universal’s traditional theatrical windowed global release F9 is set to do. Marvel movies at the global box office have been having a streak in recent years of clearing $1 billion.
Further crushing of windows by Disney on Black Widow was announced earlier this week with the title getting a 33-day theatrical window (with Disney+ Premier) before the pic arrives no digital platforms on Aug. 10, followed by a DVD and Blu-Ray release on Sept. 14 and the Johansson title being completely available for free to Disney+ subscribers on Oct. 6. This is a different window practice from Warners which has their new movies in theaters and on HBO Max for the first 30-something days, then exclusive to theaters for another month before any ancillary home windows occur.
Meanwhile, exhibition hasn’t gotten a discount on rental terms with Disney on their day-and-date release many theater owners tell us. This compared to Warner Bros which I’m told has been generous on terms with theaters given their pandemic 2021 simultaneous theatrical HBO Max release plan, whereby their streaming subscribers get access to current theatrical movies for free.
Still TBD whether Disney continues this same day theatrical-Disney+ Premier strategy. Currently the rest of their theatrical slate, which includes upcoming 20th Century Studios’ Free Guy and Marvel’s Shang Chi and the Legend of the Ten Rings, are all expected to debut in an exclusive theatrical window.
Disney will argue that the global pandemic and lopsided offshore markets caused them to release Black Widow and Jungle Cruise on Disney+ and theaters; and that they’re not giving the movie away for free in homes like HBO Max is with their movies. NATO asserts that this practice simply moved PVOD money up slightly, but will damage all downstream monies on Black Widow going forward.
Disney
We hear that the Johnson and the Seven Bucks camp don’t plan a similar attack on Disney like Johansson here as they stood alongside the studio in the dynamic window plant for Jungle Cruise to get it before as many people as they could during Covid. Johnson even announced the theatrical-Disney+ Premier release on his social media channels about Jungle Cruise. That movie is set to open to $65M this weekend at the global box office.
Big exhibition bosses like Imax’s Rich Gelfond who spoke during his company’s 2Q earnings call, are hopeful that this whole dynamic window tentpole plan for Disney is temporary moving forward. Knock on wood.
In the end, we could have seen that the writing was on the wall for Disney and Johansson’s Black Widow before this lawsuit.
During the pic’s release the 2x Oscar nominated actress told Fatherly, “I have no plans to return as Natasha. I feel really satisfied with this film. It feels like a great way to go out for this chapter of my Marvel identity. I would love to be able to continue to collaborate with Marvel in other ways because I think there’s just an incredible wealth of stories there.”
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Scarlett Johansson filed a lawsuit on Thursday against The Walt Disney Co., claiming that the studio breached her contract by releasing the Marvel movie Black Widow on Disney+ at the same time it was released in theaters.
The breach of contract lawsuit (read it here) was filed in Los Angeles Superior Court.
The lawsuit claims that, by steering audiences to Disney+, the media conglomerate wanted to grow its subscriber base and boost its stock price. Yet that was at the expense of Johannson, whose compensation would “largely be based on box office receipts,” according to the lawsuit, while she “extracted a promise from Marvel that the release” of Black Widow would be a theatrical release.
The lawsuit also claims that “Disney’s financial disclosures make clear that the very Disney executives who orchestrated this strategy will personally benefit from their and Disney’s misconduct,” as it identifies Disney CEO’s Bob Chapek’s equity grants “totaling 3.8 times his $2.5 million base salary” in 2021, with the “primary justification” for that award being the launch of direct-to-consumer services. The lawsuit also notes that Disney executive chairman Bob Iger received the “overwhelming majority” of his $16.5 million compensation in the form of stock grants, with the company’s annual report citing the growth of Disney+.
RELATED STORY
'Hawkeye' Disney+ Series Sets Thanksgiving Stretch Launch
“In short, the message to—and from Disney’s top management was clear: increase Disney+ subscribers, never mind your contractual promises, and you will be rewarded,” the lawsuit states.
Watch on Deadline
00:00 of 05:35Volume 0%
Kasowitz Benson Torres LLP’s John Berlinski, Johansson’s attorney, said in a statement, “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.”
The company did not immediately respond to a request for comment.
The Wall Street Journal first reported on the filing of the lawsuit.
“Black Widow”Everett
Even though Black Widow posted the best domestic opening at the box office with $80.3M, many in the industry believe money was left on the table with Disney not only crushing the theatrical and PVOD window, but leaving the Marvel movie open up for piracy — and pirated it was. Black Widow according to TorrentFreak has been the No. 1 pirated movie since its opening on July 9. Disney attempted to herald the pic’s opening weekend revenue for the film, saying it made a combined global theatrical and Disney+ Premier PVOD take of $218M ($60M WW PVOD + $158M WW global B.O. debut). Disney plans to trumpet similar PVOD and B.O. stats this coming weekend for their Dwayne Johnson-Emily Blunt movie Jungle Cruise which is also available on Disney+ Premier for $29.99. However, Black Widow dropped 68% in its second weekend, the worst ever for a Disney Marvel movie, indicating that piracy and PVOD had cannibalized the title. The results prompted the National Association of Theatre Owners to publicly slam Disney for crushing the window. Black Widow will be lucky to make $350M WW at the end of the day at the box office, a far cry from the $700M WW which Universal’s traditional theatrical windowed global release F9 is set to do. Marvel movies at the global box office have been having a streak in recent years of clearing $1 billion.
Further crushing of windows by Disney on Black Widow was announced earlier this week with the title getting a 33-day theatrical window (with Disney+ Premier) before the pic arrives no digital platforms on Aug. 10, followed by a DVD and Blu-Ray release on Sept. 14 and the Johansson title being completely available for free to Disney+ subscribers on Oct. 6. This is a different window practice from Warners which has their new movies in theaters and on HBO Max for the first 30-something days, then exclusive to theaters for another month before any ancillary home windows occur.
Meanwhile, exhibition hasn’t gotten a discount on rental terms with Disney on their day-and-date release many theater owners tell us. This compared to Warner Bros which I’m told has been generous on terms with theaters given their pandemic 2021 simultaneous theatrical HBO Max release plan, whereby their streaming subscribers get access to current theatrical movies for free.
Still TBD whether Disney continues this same day theatrical-Disney+ Premier strategy. Currently the rest of their theatrical slate, which includes upcoming 20th Century Studios’ Free Guy and Marvel’s Shang Chi and the Legend of the Ten Rings, are all expected to debut in an exclusive theatrical window.
Disney will argue that the global pandemic and lopsided offshore markets caused them to release Black Widow and Jungle Cruise on Disney+ and theaters; and that they’re not giving the movie away for free in homes like HBO Max is with their movies. NATO asserts that this practice simply moved PVOD money up slightly, but will damage all downstream monies on Black Widow going forward.
Disney
We hear that the Johnson and the Seven Bucks camp don’t plan a similar attack on Disney like Johansson here as they stood alongside the studio in the dynamic window plant for Jungle Cruise to get it before as many people as they could during Covid. Johnson even announced the theatrical-Disney+ Premier release on his social media channels about Jungle Cruise. That movie is set to open to $65M this weekend at the global box office.
Big exhibition bosses like Imax’s Rich Gelfond who spoke during his company’s 2Q earnings call, are hopeful that this whole dynamic window tentpole plan for Disney is temporary moving forward. Knock on wood.
In the end, we could have seen that the writing was on the wall for Disney and Johansson’s Black Widow before this lawsuit.
During the pic’s release the 2x Oscar nominated actress told Fatherly, “I have no plans to return as Natasha. I feel really satisfied with this film. It feels like a great way to go out for this chapter of my Marvel identity. I would love to be able to continue to collaborate with Marvel in other ways because I think there’s just an incredible wealth of stories there.”
Subscribe to Deadline Breaking News Alerts and keep your inbox happy.
READ MORE ABOUT:
16 Comments
More From Deadline
Lucy Liu Opens Up About Altercation With Bill Murray On Set Of ‘Charlie’s Angels’: “I Stood Up For Myself, And I Don’t Regret It”
Imax Boss Says “Cannibalization” Hurt ‘Black Widow’, Thinks Disney Will Return To Theatrical Window Releases
Rick Aiello Dies: ‘Do The Right Thing’ Actor, Son Of Danny Aiello Was 65
Former ABC Exec Vicki Dummer Joins Warner Bros. TV As Head Of Current Programming
‘Pretty Little Liars: Original Sin’ Sets Bailee Madison To Star In HBO Max Reboot
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- Johnon July 29, 2021 11:46 am
Has she had enough money already? Why does she want more?!
REPLYREPLY TO JOHN - Anonymouson July 29, 2021 11:40 am
Good for her.
REPLYREPLY TO - Black Movie Criticon July 29, 2021 11:39 am
Sorry for her; that lawsuit will go nowhere (based on the base interest of shareholders doctrine) with the movie years in the can. Now the question is who will work with the performer that might sue because it just not enough money after the fact. Now it will be the Sharon Stone sanction for her.
REPLYREPLY TO BLACK MOVIE CRITIC - Anonymouson July 29, 2021 11:35 am
Wasn’t she paid $20 million up front? She’s angry because she wanted more gross profit participation on top of that. It’s not exactly Disney’s fault that China won’t put Black Widow on the calendar.
REPLYREPLY TO - Bl420on July 29, 2021 11:31 am
Ya think she would sue if there was any chance for her to be in the sequel?
REPLYREPLY TO BL420 - Anonymouson July 29, 2021 11:30 am
She’s right. After all, it only had the 30th best opening weekend among marvel movies.
REPLYREPLY TO - Anonymouson July 29, 2021 11:29 am
well, Disney should have sorted this in advance. They should have paid her the same way WB paid Gal Gadot for releasing WW2 on HBOMax.
Scarlet deserves her top dollar!
REPLYREPLY TO - Roxieon July 29, 2021 11:25 am
Is she going to sue COVID as well?
REPLYREPLY TO ROXIE - D Eon July 29, 2021 11:24 am
Don’t piss off the only action leading lady actress, Disney! You wouldn’t like it when she’s angry!
REPLYREPLY TO D E - Jeff Jacksonon July 29, 2021 11:23 am
Wow, someone actually standing up to the Mouse. She’ll probably never be in a Disney movie again but you got to respect the balls it takes to do this.
REPLYREPLY TO JEFF JACKSON - Mr. Roboton July 29, 2021 11:22 am
The first of many lawsuits to come; Bravo Scarlett!
REPLYREPLY TO MR. ROBOT - Anonymouson July 29, 2021 11:21 am
“and that it’s hiding behind Covid-19 as a pretext to do so.”
This is the same reason they used to lay-off thousands of Employees at 20th Century Fox, one month after the lock-down started
REPLYREPLY TO - Joseph Peter Campbellon July 29, 2021 11:21 am
Too many “stars” think they are more important than they really are…
REPLYREPLY TO JOSEPH PETER CAMPBELL - Anonymouson July 29, 2021 11:08 am
To be clear, Scarlett Johansson is not an underpaid human being. But the mercenary way Disney did whatever it pleased and simply risk managed a lawsuit from her is disgusting. I hope it goes to trial and that Disney is forced to pay till it hurts. Good for her.
REPLYREPLY TO - Kiton July 29, 2021 11:05 am
Been waiting for an actor to do this. This will be a fun one to watch play out.
REPLYREPLY TO KIT - Anonymouson July 29, 2021 11:02 am
Good luck with that …. They should counter sue for her performance
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