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How Should Talent Be Paid For Streaming?
The Black Widow has a new nemesis, Disney. Scarlett Johansson is suing Disney for releasing ‘Black Widow’ simultaneously in cinemas and streaming on Disney+.
Usually, movie contracts are negotiated around box office results, bonuses depend on how well a movie performed. But this is before the age of streaming platforms. Hence, we have: Scarlett Johansson v. The Walt Disney Co.
Scarlett’s Claim: 🕷️
She alleged that Disney’s simultaneous release of the movie is a breach of contract. The contract terms said that the film would be a “theatrical release”, meaning only in cinemas. Plus, the contract was made in 2017, before Disney+ existed, so it could only mean cinemas only. The streaming on Disney+ has cannibalized the box office returns and she is not compensated from the streaming returns. Her team estimates that she’s owed $50 Million.
Disney’s Defence: 🐭
Disney put out a statement saying that her case has “no merits whatsoever”. They also accused Scarlett of being insensitive for the effects of the pandemic hitting theatre viewership whilst earning a sizable paycheck of $20 Million herself. Disney would probably defend by saying the term “theatrical release” is not exclusive, meaning they can stream it, as long as it is also released in cinemas.
Scarlett’s Counterclaim: 🕷️
Her team has cited the legal principle of “Covenant of Good Faith and Fair Dealing”, where regardless of the language of the contract, Disney has broken the intention of the contract. If Disney was to act in Good Faith, it would have renegotiated the contract.
I deal with construction disputes at work, and they always revolve around two things: payment and contract. The friction caused by streaming was felt by Warner Bros last year and this lawsuit is probably the first domino to fall in the industry. Either actor will renegotiate or sue. Emma Stone and Emily Blunt are reportedly filing against Disney too.
It’s interesting to see what the Court decides. Will the Court see Scarlett as greedy, or will they avenge her?
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