2020 was a strange time for many industries, the film industry included. The big studios began experimenting to try and salvage their revenue in a year of movie theater closures. One of the big changes tried by giants like Warner Bros. and Disney was releasing films simultaneously to theater and on demand streaming. "Black Widow” was one of the victims of this strategy. Disney released it to theaters and on their streaming service Disney+ on July 9, 2021.
Traditionally, big stars receive a portion of the box office when they agree to star in a blockbuster, and Scarlett Johansson’s in “Black Widow” was no exception. But the box office receipts only apply to theatrical showings, not to viewings at home. This has resulted in an explosive lawsuit on her part against Disney, accusing them of violating her contract with them by not releasing the film exclusively theatrically for a period of time.
These claims will play out either in court or, most likely, in a settlement agreement. But they reveal how non-specific language in entertainment contracts can lead to disputes. The complaint alleges that the contract stated the film would receive a theatrical release. It did, and I’m sure Disney would rather you see it that way. But Johansson’s legal team argued that as a “term of art”, a generally understood phrase that everyone in the film industry would read the same, “theatrical release” should be understood as an “exclusive theatrical release.” She further cites to e-mails between her and Disney lawyers clarifying this position.
How might prevail here is a complex issue. But that’s the point. A lawsuit like this will need to address concepts like terms of art, good faith and dealing, and a host of other difficult legal subjects. These are the pitfalls of writing a contract assuming the sides are in agreement, rather than ensuring the contract is very clear and all important points. This would have never gotten this far were the contract to state either position clearly: either the theatrical run isn’t exclusive or it is, stated explicitly on the page.
This is why it’s important to carefully consider every provision of an entertainment contract, making sure that it unambiguously states what those signing think it does. As streaming changes the landscape, stating how it should be handled will become more important than ever. This is why it’s important to have a considerate lawyer on your side during contract negotiation. The Law Firm of Dillon McCarthy aims to ensure that everyone can be represented when negotiating entertainment contracts.