The actor playing the lead character in the hit movie Black Widow has sued Disney for breach of contract. The lawsuit is more than another Hollywood actor fussing about their oversized payout. Rather, it will set the pace for A-list compensation schemes going forward.
In the world of Hollywood labor economics, marquee talent usually benefits most from a heavy box-office draw before other residuals kick in, at least that is the way it has worked traditionally. Disney released Black Widow in theaters and on its streaming channel at the same time, depriving Johansson of certain compensation milestones. The fine print will dictate the winner here, but the headline points to a David versus Goliath brawl. For Johannson, the estimated $50 million impact on her bank account is worth the fight.
Added Insight: Hollywood is being upended by the box office versus streaming battle. Many major studios have already shortened the window of time between theatrical and streaming releases. Disney is one of the first to go for simultaneous distribution. This shift may be good for the consumer in the pandemic era with the core movie-going audience investing heavily in outsized home screens, if not pricey home theaters. Marquee actors, however, are set to be short-changed because of the conventional structure of their success-fee arrangements.
Why We Care: Scarlett Johansson is unlikely to be collecting unemployment benefits anytime soon. But the cost of movie entertainment will increase. Major studios will soon be forced to pay premier talent more on the front end, rather on the back end, assuming greater production risk in the process. The added cost of doing business will be pushed through to ticket prices and streaming charges to satisfy shareholder demands.
Bottom Line: Major studios will become more measured in their production commitments, given the extreme cost of retaining A-list actors. That shift in business metrics may be a windfall for independent studios. Boutique players often have a better handle on their expense structure with moderate-cost talent.
Learn more at Variety
© 2021 Cranganore Inc. All rights reserved.
Unauthorized use and/or duplication of any material on this site without written permission is prohibited.
Image Credit: Ralfliebhol at 123RF.
