Disney Has 'Figured Out Ways To Fairly Compensate Talent' No Matter What Business Model, CEO Says In Wake Of Scarlett Johansson Lawsuit

The Walt Disney Co (NYSE: DIS) CEO Bob Chapek said at the company’s third-quarter earnings call that the entertainment behemoth has “figured out ways to fairly compensate” talent irrespective of the business model.

What Happened: Chapek’s comments assume importance in the wake of “Black Widow'' star Scarlett Johansson filing a lawsuit against Disney, alleging that the latter’s simultaneous streaming premiere of the Marvel action film along with the more traditional theatrical one was a breach of her contract. 

“Since Covid has begun, we’ve entered hundreds of talent arrangements with our talent and by and large, they’ve gone very very smoothly, so we expect that that would be the case going forward,” said Chapek.

“We’re trying to do the best thing for all our constituents and make sure that everybody who’s in the value chain, if you will, feels like they’re having their contractual commitments honored, both from a distribution and a compensation standpoint.”

Disney shares rose nearly 5.7% to $189.50 in Thursday’s after-hours trading after closing 0.67% higher at $179.29 in the regular session.

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Why It Matters: On Thursday Disney’s Q3 earnings per share came in at 80 cents, which beat street estimates of 56 cents.

Disney+, the company’s streaming service, reported an average revenue per user of $4.16, lower by 10% from the previous year but higher than the previous quarter’s $3.99 figure.

Chapek did not directly address the lawsuit in the earnings call. 

This week, it was reported that Disney is seeking arbitration for the Johansson lawsuit in order to avoid public gaze in the courtroom, as per the Wall Street Journal.

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Photo: Courtesy of Walt Disney Television on Flickr