Actress Scarlett Johanssonâs lawsuit against Disney about the release of âBlack Widowâ is causing ripples far beyond the courtroom.
The lawsuit claims that Johansson will lose $50 million because âBlack Widowâ was released on Disney+ at the same time it was released in theaters.
âJohanssonâs lawsuit represents everything thatâs going on in the business right now as it shifts to streaming,â said Matt Belloni, a longtime commentator on Hollywood, according to Entertainment Weekly. âThe battle lines are being drawn over how stars are going to be paid in that new economy, and this is the biggest flashpoint for that.â
He said the sometimes-controversial Johansson has a point.
âI think that Disney+ cannibalized the box office in likely a significant way, especially with repeat viewing,â Belloni told Entertainment Weekly.
âThe Marvel movies often have legs, as they say, because people go back and see them over and over. And thatâs not happening . I also think an underrated aspect of this is piracy; it was very heavily pirated because it was available at home. And I think long-term, itâs damaging because itâs conditioning people to expect this stuff at home,â he said.
Belloni said there is a war for survival taking shape in Hollywood.
âThere is a school of thought that says all these companies are driving each other off a cliff by spending what theyâre spending to attract subscribers. But the greater narrative here is that in five years, there are going to be four or five companies that dominate streaming, and then everyone else will be shut out of this game. So right now, all of these companies are fighting to be in that group of survivors,â he said.
Belloni told Entertainment Weekly that in the new business model, success at the box office is not the true measure of a movieâs success.
âWhat the studios care about right now is not necessarily maximizing revenue, itâs maximizing subscribers to the streaming service,â Belloni said. âWhen Wall Street looks at your subscription numbers, they want to see growth. So theyâre not thinking about this in a typical way; theyâre thinking about it in a growth way.â
At least one observer says Disney will come out on the short end.
âhatever happens, whoever wins, Disney has suffered a severe blow,â Thomas Bacon wrote on ScreenRant.
âJohanssonâs lawsuit â and Disneyâs disappointing response to it â has undeniably caused reputational damage for the company, leading to discussions about ethical standards and bad practices that had never quite gained enough traction to be noticed by the general public before now,â he wrote.
âScarlett Johanssonâs lawsuit has caused real damage to Disney, regardless of whether she wins or not. This damage must not be overstated â Disney is still a corporate giant, and will surely ride this crisis out â but it is there nonetheless. Itâs really not the way anyone expected the release of âBlack Widowâto play out,â he wrote.
Jeff Finkelstein, a partner at the Entertainment law film Del Shaw Moonves Tanaka Finkelstein & Lezcano, told Entertainment Weekly that the winnowing of the entertainment sector could bring Hollywood back full circle to its past.
âThe old contract players arrangement that existed in the early days of film industry, funnily enough, I think is something that weâre actually going to return to,â Finkelstein said. âAnd we may be so far along that continuum that we canât put the toothpaste back in the tube.â
This article appeared originally on The Western Journal.
