Disney Responds to Lawsuit Amidst Streaming Controversy

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Disney CEO Bob Chapek responded to Scarlett Johansson’s $50 million lawsuit against Disney, defending the studio’s decision to release Black Widow on Disney+ alongside theaters, a move he attributed to the pandemic’s uncertainty.

Speaking at a Q3 earnings call, Chapek explained that Disney prioritizes flexibility in distribution decisions, especially as COVID-19 cases surged, a factor the company had not initially foreseen.

Johansson, 36, filed the lawsuit last month, claiming her earnings took a hit due to the streaming release, which allegedly went against her contract promising an exclusive theatrical launch.

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Her lawsuit argues that most of her compensation was intended to come from box-office returns.

Chapek stood by the hybrid release approach, calling it the most effective way to reach audiences during the pandemic.

He stated that distribution strategies will continue to be tailored for each film as Disney evaluates all options available.

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Daniel Petrocelli, a lawyer for Disney, criticized Johansson’s lawsuit as a “highly orchestrated” PR move, arguing that it aimed to pressure Disney into a settlement beyond her contractual entitlements.

Petrocelli stated, “No amount of public pressure can alter the contract’s clear terms,” asserting that Disney’s approach aligned with the agreement.

Disney has adopted a pay-to-access model on Disney+ known as Premier Access, which charges subscribers an extra $29.99 for individual titles like Black Widow.

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Petrocelli argued that this model bolstered Johansson’s potential earnings by incorporating streaming revenue in box-office bonus calculations.

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He noted that the film debuted on over 9,000 screens in the U.S. and 30,000 internationally, meeting and exceeding the minimum requirements specified in Johansson’s contract.

Black Widow set a record with $218 million worldwide during its opening weekend, which included $60 million from Disney+ Premier Access.

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However, its box-office revenue sharply declined by 67% after opening weekend, a drop some analysts linked to the simultaneous streaming release.

In response to Johansson’s legal claim, Disney noted that she earned $20 million for her role and argued that the streaming release allowed her additional earning potential.

Petrocelli reiterated that the streaming option was intended to accommodate fans reluctant to visit theaters due to COVID-19, adding that studios across the industry had to adapt to new distribution challenges.

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Looking ahead, Petrocelli suggested that future talent agreements would likely include specific language about compensation linked to streaming revenue.

He acknowledged that the industry’s transition to online releases, fueled by the pandemic, is changing traditional contract terms.

Currently, Johansson’s contract mandates that disputes be resolved through arbitration, not open court.

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Variety reported that Johansson’s agreement was with Marvel Studios, a Disney subsidiary, but her lawsuit targets Disney, claiming the company prioritized Disney+ over the film’s theatrical success.

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