Movie theater trade association Cinema United, who was an opponent of a Warner Bros Discovery acquisition from the onset, released a statement this morning, commending the four AGs work on settling with Paramount.
“The consent decree includes language on increased film production for five years, meaningful theatrical exclusivity and wide distribution, prohibitions on cost increases, and continued access to the catalogs of Paramount and Warner Bros,” said Cinema United President and CEO Michael O’Leary in a statement this morning. All good things for movie theaters after they have suffered Covid closures, and Hollywood union strikes impacting the box office; the theatrical marketplace now in its best shape since 2019, on its way to $10 billion stateside.
Cinema United advocated for many provisions that were included in the settlement, i.e. continued access to film catalogs at reasonable rates is also included. The org definitely wanted to make sure that a monster merger wouldn’t dictate draconian rental terms. The AGs settement safeguards that. Also, the org believed that Paramount should be held to production output terms in excess of three years. The settlement holds the Melrose Lot to churning out films for five years.
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In the first two years, 20 of the 30 films must go into wide distribution. In years three to five, 21 of the 32 must go wide. Cinema United argued for a definition of “wide release” be 2,000 screens as it’s now outlined in the consent decree. So, bravo there.
Cinema United also argued for language to be included in the deal that prohibits PVOD marketing prior to Day 30 in an exclusive theatrical window. The pact has Paramount agreeing to a 45-day window of theatrical exclusivity and a 90-day SVOD window.
Going back to Netflix’s pursuit of Warner Bros, Cinema United has been relentless in being the town crier to the U.S. House Committee about the ills of a merger on the overall exhibition and entertainment industry.
“Such an acquisition will further consolidate control over production and distribution of motion pictures in the hands of a single, dominant, global streaming platform in a market that is already highly concentrated. The impact will not only be felt by theatre owners, but by movie fans and surrounding businesses in communities of all sizes,” read Cinema United’s statement to a congressional committee backed back in January. Cinema United warned that a Paramount and Warner Bros merger would consolidate as much as 40% of the box office in the hands of one studio. Exhibit A in exhibitor paranoia has been the aftermath of the Disney-Fox merger, which yielded $1 billion less in box office between 2016-2025, a 70% drop.
Cinema United has also argued that consolidation will reduce the diversity of movie options and will lead to job loss. Also, let’s not forget about the impact on Main Street U.S.A. as movie theaters are the epicenter of many major shopping districts.
Here is O’Leary’s full statement below:
“For nearly a year, and throughout multiple efforts to acquire the iconic Warner Bros. Studios, Cinema United has remained steadfast in its primary objective to safeguard theatres of all sizes across this great nation and around the world from the harms of legacy studio consolidation.
The agreement announced yesterday accomplishes many of exhibition’s objectives. The consent decree includes language on increased film production for five years, meaningful theatrical exclusivity and wide distribution, prohibitions on cost increases, and continued access to the catalogs of Paramount and Warner Bros. While no settlement can eliminate all risk from a merger of this size, these conditions will enable our industry to adapt and succeed in a rapidly changing media environment.
The State Attorneys General’s lawsuit and, now the consent decree, strongly validates that movie theatres are the beating heart of Main Street America and the entire U.S. film industry. Cinema United appreciates the efforts of both the State Attorneys General and Paramount to resolve the merger lawsuit.
Our focus now shifts back to our bright future. For well over 100 years, global exhibition has worked closely with both Paramount and Warner Bros. to deliver amazing big screen experiences to fans around the world. We look forward to strengthening these historic partnerships to ensure that going to the movies remains the premier entertainment option for generations to come.”
