After a high-stakes suit over Disneys release of Marvels Black Widow today on its Premier Access streaming platform, and the compensation paid to Scarlett Johansson for the film's star Scarlett Johansson by the company, the Disney head today defended both its payouts to talent and its decisions regarding pandemic movie releases.The company's third quarter earnings call featured Disney boss Bob Chapek explaining the multi-pronged approach that the company used to release its films during the pandemic. This included theatrical exclusives and digital releases on Disney Plus. A hybrid of both saw films debut on Disneys Premier Access platform on the same day as they were released in theaters. Premier Access was selected as the release model of several highly anticipated films, such as Mulan, Cruella and Black Widow, in the past year.Chapek stated that Bob Iger, I and the leaders of our distribution and creative teams decided this strategy was the best because it would allow us to reach as many people as possible. Just to be clear, distribution decisions are made film-by-film based on consumer behavior and global market conditions. We will continue to use all options, draw from the insights we have gained with each release and invent accordingly, while doing what is best for the film and our constituents.Distribution decisions are made film-by-film.One shareholder asked Chapek how Chapek thinks about the film's success in today's pandemic environment and how it compensates its employees. The hybrid release had a severe impact on the film's box office performance, according to the Black Widow suit. Chapek stated that the company is responding to a fluid market situation, but that some films were made under circumstances when we didn't know what would happen to consumer behavior three, four, and five years later.Chapek stated that we were dealing with a completely different set of circumstances than we had anticipated. Chapek said that, just as we've done so many times in the past, we have found ways to fairly compensate our employees so that, no matter the business model we use to reach market, everyone feels satisfied.We have found ways to fairly compensate our talents.Although neither Black Widow or Johansson was mentioned explicitly in Chapeks' responses, they seem to have doubled down on statements made in response Johanssons suit last month, which was denied merit. Johansson claimed that she had been denied substantial bonuses tied to the film's box office performance and that Disneys decision not to release the movie on Premier Access reduced her earnings.Disney claimed that Ms. Johansson was fully compliant with her contract at the time and that Black Widow's release on Disney Plus with Premier Access has greatly increased her chances of earning additional compensation. Johansson appears to disagree.
