Black Widow Shows the Failure of The Streaming Model

Over the past few weeks, Marvel and Disney have encountered a huge controversy with one of their properties, Black Widow. The film performed less than well at the box office, with one chief culprit as to why: Disney Premier Access.

Another controversy also emerged on the back of this, as Scarlett Johansson filed a lawsuit against Disney over how the film was released.

Firstly then, Black Widowā€™s distribution model must be explained. The film was originally slated for a full theatrical release in May 2020. However, due to it being delayed multiple times due to the coronavirus pandemic, Disney opted to put it on their streaming service on the same day as it came out in cinemas, charging an additional 20 or 30 dollars.

In its opening week, Black Widow made nearly 80 million dollars internationally (not including the US box office), 80 million dollars in the US and 60 million dollars through Disney+. However, the US number was lower than expected, with estimates of 90 million based on the Friday opening. Black Widow missed this mark because of a record 41% drop on its second day.

This drop off continued into Black Widowā€™s second week, with a 67% drop off in the US (making 26.25 dollars) and a 55% drop off internationally (making 29.9 dollars). Disney did not report Disney+ numbers in the filmā€™s second week, suggesting they were not positive. The drop off in the US makes Black Widow the MCU film with the highest drop off.

These drop offs are bad. There is no denying that. But it gets worse.

On July the 29th, Scarlett Johansson filed a lawsuit against Disney, alleging that she was promised by Marvel that her film would get a solely theatrical release, not the simultaneous release on Disney+ as well. Johanssonā€™s lawyers say that Ms Johansson has lost 50 million dollars because of the release strategy.

Image credit: Marvel Studios

Johansson also accuses Disney of moving the film to Disney+ without justification. Disneyā€™s response to say the suit had no merit, that Disney had fully complied with Ms Johanssonā€™s contract and that the suit was ā€œespecially sad and distressing in its callous disregard for the horrific and prolonged global effects of the Covid-19 pandemicā€.

This all indicates that Disney releasing Black Widow on Disney+ at the same time as in cinemas was a failure.

Why did Black Widow drop off so much then? Disney+ carries most of the blame for its poor box office performance. Those watching Black Widow on the streaming site would have most likely gone to a cinema, meaning that the cinemas have lost out on revenue.

The Disney Premier figures donā€™t take into account the number of people watching Black Widow either, only Disney+ accounts that have bought the film. This means a household of four could have watched it at home, and not go to the cinema. The cinemas lose out on four tickets. Something else to account for is repeat viewings. In a normal scenario, people would have to pay each time for those repeat viewings. However, if the 20 pounds is paid the film can be watched multiple times, again lessening the tickets sold.

Disney+ also makes this film easier to pirate. According to TorrentFreak, Black Widow was the most pirated film of the July 19 week. Several other films that were released on streaming sites also graced this list. Piracy poses a big threat in markets where the film hasn’t been released yet, such as China. Piracy is why Mulan tanked in China in September 2020; Black Widow is heading for a similar fate.

Not only is Disney+ cannibalising cinemas, but it is destroying other areas where Disney can make money too. Streaming the film on Disney+ means that Disney wonā€™t be able to make as much money selling copies of the film, or premium video later down the line. Disney has sacrificed a bigger, long term gain for a smaller short term gain.

Image credit: Disney

One final point is to compare this filmā€™s box office take with another film, one that didnā€™t release on a streaming site immediately. F9 released a few weeks ago, sharing the same pandemic conditions as Black Widow. However, the cinemas get this film exclusively for forty five days. F9 is projected to make 700 million dollars worldwide once it has finished its theatrical run; Black Widow is projected to make 350 million, according to IMAX CEO Rich Gelfond. The difference could not be starker.

In regard to the lawsuit, I hope Johansson wins. She has had a rough time. It took far too long to get a solo film in the first place, only to have it delayed by over a year. Disney then cannibalised the success of her own film, and potentially broke her contract in doing so.

While I do think Johansson goes a bit too far in alleging there was no justification to put this film on streaming (the global pandemic comes to mind), her overall point is not wrong.

It is a shame Scarlett Johanssonā€™s last MCU project has been tarred by lawsuits and limited box office success. Hopefully Disney will realise that a simultaneous release strategy is not the path forward, as it benefits neither their stars, the cinemas, nor Disneyā€™s own bottom line.

Feature image: Marvel

By Kieran Burt

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