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Scarlett Johansson wants some of that Disney+ money

Disney paid Scarlett Johansson $20 million to make "Black Widow." Johansson thinks Disney owes her a heck of a lot more. Disney doesn't agree. 

That's the simplest way to understand Hollywood's biggest drama of the week, in which Johansson, one of the world's biggest movie stars, sued Disney, the world's biggest entertainment company. Disney then called Johansson greedy, prompting her agent, Bryan Lourd, to issue a statement attacking Disney.

Pay disputes like this are routine, but this case is notable for a couple reasons.

It is the culmination of a months-long battle between Hollywood stars and studios over what they should get paid when movies get released on the internet and in theaters at the same time. When the pandemic shuttered theaters, media companies decided to release some of their movies online instead of (or at the same time as) the movie's release in theaters. This was both a way to get their movies out into the world, and to boost their incipient streaming services.

While this was good news for most consumers, it was bad news for a handful of actors and directors who make extra money based on box office sales. In addition to their salary, they get paid a share of the movie's total profits and/or a bonus when a movie eclipses a certain threshold at the box office. This is how Robert Downey Jr. made a reported $75 million from "Avengers: Endgame." 

But in the streaming model, individual titles don't generate a profit or a loss. Titles are successful if they drive subscriptions to a streaming service. Movie stars don't get a cut of new Disney+ (or HBO Max) subscriptions.

Netflix has avoided a war with talent because it pays so much money upfront. It treats most movies as if they were hits. Warner Bros. eventually did the same. Movie stars were furious with the studio at first when they found out their movies would be released on HBO Max. They threatened a lawsuit. They called Warner Bros. the devil. Then Warner Bros. paid them a ton of money, and they piped down.

Disney has been handling its titles on a more case-by-case basis, and had avoided any public fights until now.

This brings us to the second surprise: You almost never see pay disputes involving stars of this magnitude results in lawsuits. Hollywood prefers to negotiate rather than litigate.

Disney could have prevented this headache with a check, but it declined to pay up. It felt that it could pay talent in the same manner that it does on theatrical release. Unlike Netflix or HBO Max, Disney is charging people an additional fee to watch the movie at home, and counting that money towards the movie's overall box office figure. Paying Johansson on top of that box office figure could set a precedent for talent in other streaming movies.

Disney will argue "Black Widow" is making more money than it would have with a traditional release. The handful of movies released the old-fashioned way have not done so well because only so many people are willing to go to the theater. Disney is giving customers more ways to pay to see "Black Widow."

Yet there's also no question that Disney is dropping "Black Widow" on Disney+ to boost subscribers. And Disney, like Netflix and HBO Max, isn't sharing any of its Disney+ subscription money.

And yet, as much coverage as this story has gotten, this is still just a contractual dispute between a conglomerate and a rich person over how to split hundreds of millions of dollars. (In that sense, this case reminds me a little bit of Taylor Swift's fight for her masters.)

Had Disney just renegotiated Johansson's deal, there would be no lawsuit. Disney can release movies on streaming going forward without risking a lawsuit. The company is only involved in a legal dispute because it changed plans at the last minute.

If Johansson wins, it doesn't help the grip on the movie, or the stunt double. It doesn't mean every movie star will get paid more either. We should hear soon if there's any frustration from the stars of "Jungle Cruise," another blockbuster Disney dropped on Disney+ the same day it appeared in theaters. (Stars of these kinds of Disney movies get both profit-sharing and box office bonuses.)

If she loses, it doesn't hurt them either. This is an episode of "Entourage" not a sequel to "Working Girl." 

Richard Rushfield does a great job outlining why this may not be some watershed moment in the history of Hollywood talent relations. Johansson was at the end of her Marvel contract, giving her more freedom to fight. Few people under a long-term contract with Marvel want to go to court, and there's no world in which Johansson's agency, CAA, stops working with Disney.

This case is headed for some kind of settlement. Scarlett Johansson doesn't want Disney to pull "Black Widow" from Disney+. She wants to get paid a fat sum of money for being a guinea pig in this Disney+ experiment. And Disney doesn't want to get sued by five movie stars at the same time. 

There is one solution that could make everyone look good. Disney could settle with Johansson, and the actress could donate her extra pay to workers who lost their jobs during the pandemic.  Just a thought. – Lucas Shaw

The best of Screentime (and other stuff)

How TV Went from David Brent to Ted Lasso
James Poniewozik examines how irony gave way to sincerity.
The Amazon Is Fast Approaching a Point of No Return
Brazil's rainforest is being stolen and cleared at an accelerating pace, and the Bolsonaro government is fanning the flames.
Can Affirmative Action Survive?
Nicholas Lehmann writes about the history of affirmative action, an unfinished approach to creating greater diversity and inclusion.
Hou Yifan and the Wait for Chess's First Woman World Champion
Sorry for the double New Yorker links. I actually read through an issue this week.

Peacock, Paramount+ play catch up

Media companies are circling a documentary series about basketball star turned mogul Magic Johnson. It's been billed as Johnson's version of "The Last Dance."

Submarine Entertainment, which has been involved in "The Social Dilemma," "Boys State" and "American Factory," is shopping the rights. Rick Famuyiwa, who made "Dope," is its director.

I'm told Peacock is in the lead with an offer of about $25 million, but neither Peacock nor Submarine had any comment. Should Peacock close the deal, it would be the latest in a series of big movies designed to signal Comcast's growing commitment to the streaming service.

Universal and Peacock are spending more than $400 million to make three new movies inspired by "The Exorcist." Peacock helped make the deal possible by buying out the back-end profit participation. Half that money goes to Morgan Creek, which owns the original movie. Half of it goes to producer Jason Blum and his team for making the projects. 

It's still not clear whether the precise role Peacock will play in the movies' release, but Comcast wants everyone to know Peacock will play a role. 

Speaking of media companies wanting you to take their streaming businesses seriously… Alex Kurtzman signed a very large new overall deal with ViacomCBS Inc., and has plans to make even more "Star Trek" shows, as well as a couple other shows.

In other deals news...

  • The NBA gets into podcasting. The basketball league will mine its audio archive to co-produce podcasts with iHeartMedia.
  • Netflix joined the AMPTP, the group that represents Hollywood studios in negotiations with unions.

YouTube is almost as big as Netflix

The streaming video service generated about $7 billion in advertising sales during the most recent quarter, a jump of 84% from a year ago and almost double its pre-pandemic sales in 2019.

YouTube's advertising business is now almost as large as Netflix's subscription business. Given their current rates of growth, it will be bigger by next year.

More corporate earnings

  • Spotify's stock has tanked 27% so far this year, erasing more than half of the stock's gains from last year. Though Spotify continues to outpace its rivals, its user growth has disappointed for the last six months.

The lawsuit rocking the video game world

Employees at Activision Blizzard Inc. staged a walkout this week to protest the company's response to a lawsuit accusing it of sexual discrimination and harassment. 

I am no expert on labor strife in the video game industry, but fortunately my colleague Jason Schreier is one of the foremost experts on that very topic. If you are about gaming or labor law, I highly recommend his new Game On newsletter.

The next live audio service

Enthusiasm for live audio services has petered out in recent months, as Clubhouse's user growth slowed and Spotify's live audio experiment has yet to take off.

Yet music people in particular are excited about Stationhead, led by musician Ryan Star. The app's user base jumped from 165,000 in the first quarter of this year to more than 1.6 million in the second quarter, the company told me. In the same period, Cardi B, Normani and Camila Cabello all dropped into live shows to talk to fans.

The biggest tour in North America this year is…

TobyMac performs at the Drive-In Theater Tour.

"The Drive-In Theater Tour." During the first half of 2021, it sold $2.93 million in tickets across 64 shows. The show was the brain child of Dan Fife, the founder of Awakening events, and TobyMac, a 56-year-old Christian rapper.

Fife staged his first drive-in show in June 2020, on a compact stage hardly big enough for TobyMac's nine-person band. Over the next few months, they honed their routine, limiting attendance to 500 or 600 cars. They brought in cameras and projected the live performances onto the drive-in theaters' oversized screens, creating a big-show feel.

Some other numbers…

  • "Jungle Cruise" tops the box office. The $200 million movie, based on a Disney theme park attraction, grossed about $92 million globally (including streaming purchases). It's usually not a good thing to open to less than half of your budget.
  • The most popular TV show on streaming services is "Manifest," a show that first aired on NBC but has been very popular on Netflix.
  • Ratings for the Olympics have slipped 42%. At least sign-ups for Peacock are up?

Weekly playlist

There is a bounty of new music out this week, including records from Yola and Isaiah Rashad. But I recommend you look up the Spotify playlist for hit songs from your youth, and let it play. (For me, that's the early 00s.)

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