An indie film set to premiere at this week’s Sundance Film Festival has been pulled from the lineup by its financier, Variety has learned exclusively. The backer says the movie’s director made a secret new cut of the film, one used to enter global film festivals and court critics without its owner’s knowledge.
“Blknws: Terms & Conditions,” an official selection in Sundance’s Next section, is directed by Kahlil Joseph (a contributor to Beyonce’s visual album “Lemonade”). Participant, the now-defunct social impact studio, says it poured years and millions into the mixed-media project only to be sidelined by a new version of the feature.
In a legal communication from an attorney, obtained and verified by Variety, Participant said it was “shocked” to allegedly learn last Friday that Joseph was screening a new cut of the film to critics at talent agency CAA. One made, the legal email said, “in secret.” The letter further accused Joseph of using this new cut to gain entry to the Berlin Film Festival.
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“Given that Mr. Joseph delivered the film to Participant in November 2024, and Participant submitted that version to Sundance in reliance that it was the final cut of the film, it is completely unacceptable that Mr. Joseph continued to purport to make changes to the film,” the letter continued. As its primary producer, Participant owns the copyright to the film. Three years ago, indie powerhouse A24 boarded the picture as a co-financier and distributor. They dropped out last August after Kahlil had still not delivered his final film, the legal letter says.
In a statement to Variety, a Sundance spokesperson said the festival was “deeply disappointed to have been informed this evening by Participant that they are pulling ‘BLKNWS: Terms & Conditions,’” adding that the film is “a radiant and immersive cinematic experience which we were looking forward to premiering for our audiences this Friday.”
Participant had no immediate comment on the matter, outside the issued letter from counsel. Representatives for Joseph — who has also directed short films and music videos for artists including Kendrick Lamar and FKA Twigs — did not immediately return Variety’s requests for comment.
Joseph’s film is billed as an ambitious emotional and visual effort, described as “an ongoing art project that blurs the lines between art, journalism, entrepreneurship, and cultural critique, appropriating the newsreel format as an opportunity to reimagine the contemporary cinematic experience.” The film is led by Shaunette Renée Wilson (“Billions,” “Black Panther”).
Another individual familiar with events that led to the legal letter said that two Participant executives were present at the contested CAA screening on Jan. 17. The differences between the new and approved cuts are about a minute long, they added. Two sources confirmed that Participant’s beef boils down to legal clearances, a standard procedure in film distribution that is usually aided by watching the film in question. Many titles that premiere at film festivals, numerous insiders close to this situation noted, are rarely finished works.
It may sound confusing to hear Participant at the center of a current film release squabble. The do-gooder studio launched by billionaire Jeff Skoll ceased formal operations last April, Variety reported exclusively. It now exists as a holdings company for the Participant library assets, which includes “Blknws: Terms & Conditions.”
Participant concluded it was “particularly galling … because Participant has been nothing but patient with and supportive of Mr. Joseph … required Mr. Joseph to deliver a final cut of the film in June 2022, over two-and-a-half years ago. Participant has nonetheless poured millions of dollars into supporting Mr. Joseph and his vision for the film.”
The note is particularly revealing about the labored process to launch a movie that was, in all fairness, hobbled by COVID-19 and the 2023 Hollywood labor strikes.
Read the full Participant letter below.