Disney and Marvel left fans in a state of breathless anticipation with their Disney Investor Day presentation, and upcoming slate of movies and series. Especially exciting is the terrific movie slate from Phase 4 of the Marvel Cinematic Universe. Marvel is firmly of the view that it will release its tent-pole films only in the theatres. But before that, it must contend with the Covid-19 pandemic – a pandemic that rages on, showing no signs of abating.
How long can Marvel Studios hold on in the likely scenario of the pandemic persisting for the next year and audiences continuing to stay from theatres? No one knows. In such a scenario, what happens if Marvel films do have to be released on streaming ultimately?That is, on Disney Plus?
It is a very likely scenario. And Marvel knows one thing for certain. The WarnerMedia fiasco has made it wary of the consequences of big ticket films going straight to streaming. According to a new report published this morning by digital media publication ‘The Wrap’, Marvel is exploring options to formulate new contract deals with the mainstream talent of its big movies. It is looking to add an extra clause in its contract negotiations, outlining compensation in both – theatrical and streaming scenarios.
The new clause in the contract will be applicable for the already announced Marvel movies that have yet to enter production. This would include all upcoming films that will begin filming after the new contracts come into being. Black Panther 2, which begins filming in June of 2021, will likely be the first of the lot whose cast and crew will be subject to the new contract negotiations. Whether the new payment deals will apply to already completed MCU films is unclear at the moment.
All primary above-the-line talent on the films will be part of the new terms, including actors, writers, directors and producers. The new terms will allow Marvel Studios to offer adjusted compensation to the film’s key players, in case that film goes straight to streaming. This will give Marvel Studios hefty savings in payouts to key talent, most of whom receive bonuses based on a film’s earnings at the box office.
Marvel Studios’ quandary comes in the wake of WarnerMedia’s decision to move its entire 2021 movie slate to HBO Max, and the subsequent backlash it received from the cast and crew of big ticket films such as Dune, who may have to forego their bonuses, or receive peanuts as backend compensation. Marvel exploring new if/or contract deals is precisely in order to avoid such a scenario.
As of now Marvel has no plans to release any of its MCU films on Disney Plus. But given the uncertainties, no one can predict for sure what will happen in the near future.
Safeguarding their interests with new contracts and new clauses is definitely the best way forward for most film studios now, burdened as they are with rising expenditure and dwindling box office revenues in a post-Covid world.