Disney is facing another lawsuit over its distribution practices. Scarlett Johansson made headlines in 2021 when she sued Disney for diminishing potential box office returns by simultaneously releasing Black Widow theatrically and on Disney+. Now the studio has a similar lawsuit on its hands, but this time it's coming from their Film Finance Partner TSG, who claim the studio is hoarding profits from their films.
TSG was originally partnered with Fox, which was acquired by Disney back in 2019. Since the acquisition, TSG has worked on projects like Avatar: The Way of Water and The Banshees of Inisherin. According to Deadline, the company is suing Disney over how it has shifted its distribution since COVID-19, and the industry-wide focus on streaming. The defendants, which Disney and Fox are named as in the lawsuit, allegedly are hoarding profits by shortening their theatrical windows in favor of streaming profits. TSG claims that this model comes at the expense of financing partners.
