The Marvel Cinematic Universe's unorganized MCU Phase 4 movie release strategy has already prompted some controversy. Its first two films, Black Widow and Shang-Chi and the Legend of the Ten Rings, have each brought to light severe conflicts in Marvel parent company Walt Disney Co.'s methods of distribution between theaters and its streaming service Disney+. Black Widow's concurrent release in theaters and on Disney+ led to a significant drop in box-office revenue and a lawsuit from Black Widow herself, Scarlett Johansson, while Shang-Chi's upcoming exclusive theatrical debut risks a low turnout due to the nation-wide rise in COVID-19 cases and hospitalizations.

For comparison, Warner Bros. made headlines at the end of 2020 when it announced its entire 2021 movie slate would be released in theaters and on HBO Max concurrently. Other than Christopher Nolan and Dune director Denis Villeneuve's outspoken criticism of the strategy, and a potential lawsuit with Legendary Pictures, the studio has mostly managed to avoid conflicts with filmmakers and actors, although films like Space Jam: A New Legacy and The Suicide Squad struggled to sustain success at the box office. Nonetheless, Marvel and Disney's release strategy has potentially resulted in even worse.

Related: What Scarlett Johansson's Lawsuit Means For Disney, Marvel & Streaming

Johansson's suit filed against Disney alleging a contractual breach caused by Black Widow's day-and-date streaming release already had Marvel in a pickle. On the heels of that came comments about Shang-Chi's new release format from Disney CEO Bob Chapek that were misconstrued, leaving Marvel in a quagmire it shows no sign of correcting. The studio's current mess stems from a number of missteps at the executive level and could hinder its long-term success. If Marvel continues to waver between release strategies, it risks alienating both its talent and its fanbase.

Scarlett Johansson's Black Widow Lawsuit Explained

Natasha Romanoff turning back to look at someone in In Black Widow

Phase 4's movie lineup commenced on July 9 with the concurrent release of Black Widow in theaters and on Disney+ Premier Access for a $30 additional fee. The film generally earned positive reviews from fans and critics alike and set a new pandemic-era opening weekend high at the domestic box office with its $80 million in first weekend earnings.

However, controversy soon followed on July 29, when Johansson sued Disney for an alleged breach of contract relating to Black Widow's streaming release. The Natasha Romanoff actor claimed that Disney violated an existing agreement that ensured an exclusive theatrical release for her debut MCU solo film—which Disney allegedly failed to restructure when the movie's dual release was confirmed. As a result of Black Widow's hybrid debut, Johansson missed out on the movie's Disney+ earnings since her salary was largely structured based on box-office revenue, according to the lawsuit. Hours following the news, Disney fired back, denying the suit's merit and accusing Johansson of "callous disregard for the horrific and prolonged global effects of the COVID-19 pandemic."

On August 21, Disney further complicated the matter, as the corporation filed to move the case to arbitration, which would resolve the dispute outside court. Johansson's legal team reacted immediately, labeling Disney's response a "misogynistic attack" against the actor. Johansson's lawyer John Berlinski slammed Disney for using Black Widow to boost its streaming service's subscriptions. Many have come out in support of Johansson, including Marvel Studios' president Kevin Feige, who was reportedly "angry and embarrassed'' over Disney's handling of the situation. The conflict between one of Marvel's most high-profile stars and Disney is far from solved, as the debate over theaters versus streaming services intensifies.

Related: Scarlett Johansson's Black Widow Lawsuit Echoes Marvel's Biggest Controversy

Disney's Controversial Shang-Chi Comments

Xialing, Shang-Chi, and Katy prepare for battle in Shang-Chi and the Legend of the Ten Rings

With Shang-Chi's September 3rd U.S. release up next in the MCU's Phase 4, the movie has attracted its own matter of controversy, thanks to new Disney CEO Bob Chapek, who described Shang-Chi's release strategy as "an interesting experiment for us." Chapek's comments refer to Shang-Chi's exclusive theatrical release for a 45-day window, after which the film will be available on Disney+. It's fairly clear he meant the experimental part will be seeing how audiences rebound to a fully theatrical Marvel release when the country is still in the middle of the delta variant COVID-19 surge.

However, his comments were misconstrued, with Shang-Chi's starring actor Simu Liu responding via Twitter and saying, “We are not an experiment. We are the underdog; the underestimated. We are the ceiling-breakers. We are the celebration of culture and joy that will persevere after an embattled year. We are the surprise." Feige addressed Chapek's remarks at the movie's premiere stating, "I think in that particular tweet you can see—and I think everyone does—a misunderstanding." Feige also defended Marvel's commitment to Shang-Chi and the studio's approach to the movie's release, as he declared, "The proof is in the movie, and we swing for the fences as we always do."

How Shang-Chi's Release Strategy Compares To Black Widow

Shang-Chi and the Legend of the Ten Rings movie review

Shang-Chi's exclusive theatrical release differs from Black Widow's hybrid theater-Disney+ debut, a modification that comes with pros and cons. The 45-day theater-only window means fans who aren't comfortable entering a theater don't have to wait long to see the film, but Shang-Chi's box-office numbers could suffer a steep drop much like Black Widow if loads of moviegoers are willing to wait. Marvel's change of plans from Black Widow to Shang-Chi comes as no surprise in light of Johansson's recent lawsuit, as Disney certainly hopes to avoid another legal battle with one of its stars. Shang-Chi's theatrical-only release also derives from Marvel's inability to determine the best distribution model; it makes little sense that Marvel would be more confident with a theatrical exclusive now than in July, considering the worsening COVID-19 pandemic. Marvel and Disney are taking a gamble with Shang-Chi opening in theaters only and the prospects for a huge payoff look bleak, regardless of how good the film is.

Why Marvel's Phase 4 Release Strategy For Movies Is A Mess

Split image showing a poster for Black Widow and the Disney+ logo

The MCU's Phase 4 slate, which represents Marvel's first movie releases since the COVID-19 pandemic began, developed into a disaster due to the studio's staggering inconsistency. Opting for a theater-only release for Shang-Chi after Johannson exposed Disney's internal mishandling of Black Widow screams hypocrisy and avoidance on the part of the distributor. More disputes with its stars likely won't go over well with fans, who have already criticized Disney in large numbers. Over a year into the pandemic, it's both surprising and disappointing that Marvel, and especially Disney, didn't have a more comprehensive plan for its upcoming movies. The studio could have avoided its recent controversies if it had followed Warner Bros.'s unvarying theater-HBO Max model of hybrid releases for all of its titles. In turn, Marvel and Disney's lack of preparation does a massive disservice to those involved in the production of the affected films through its modification of distribution strategies solely for experimental purposes. The effects of Marvel's dilemma also extend to the reception of its films. Spectacle has always been critical to the success of MCU movies, and some argue that at-home releases lessen Marvel's longstanding theatrical appeal.

Related: Every Disney+ Release Controversy: Black Widow, Pixar, Cruella & More

What The Future Looks like For The MCU Phase 4 Release

Eternals Poster

With its poor handling of movie releases, Marvel finds itself in a difficult situation. At the moment, Marvel appears prepared for the rest of its Phase 4 slate to debut solely in theaters, but Feige hasn't ruled out further hybrid releases like Black Widow. When prompted by Variety about Marvel's release strategy for Eternals, expected to open on November 5, Feige hinted at a possible concurrent Disney+ release, stating, "I think a theater would be my preference and Chloe [Zhao]'s preference. We will see where we go with it."

It appears that Marvel's approach to Eternals and Spider-Man: No Way Home in 2021 will rely on Shang Chi's performance—which may be a lose-lose situation for the studio and its parent company. If Marvel and Disney revert to the day-and-date streaming release model, it will likely face backlash for its experimental treatment of Shang-Chi. Additionally, if Disney once again botches its contract negotiations with actors, it risks soiling more relationships with the very individuals who bolster the studio's profits. On the other hand, if Shang-Chi & the Legend of the Ten Rings' theatrical-only release strategy significantly hurts it at the box office, there will be those questioning why Disney didn't negotiate a day-and-date release with a fairer contract. By playing it by ear and not having a long-term release strategy for the COVID-19 era, Marvel has looked uncharacteristically unprepared and it could ultimately hurt their MCU Phase 4 rollout.

Next: Black Widow & Disney+ Shows Prove MCU Phase 4 Can Ease Up On Spectacle

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