Cinema United Warns House Committee Of Negative Impact Of Netflix Or Paramount Acquisition Of Warner Bros. Discovery

Core Viewpoint - The acquisition of Warner Bros. Discovery by either Netflix or Paramount is expected to negatively impact theater owners and the overall movie industry, leading to reduced theatrical releases and increased studio leverage in negotiations [1][2][3]. Group 1: Concerns Over Consolidation - Cinema United expressed that the consolidation of Warner Bros. by Netflix would further concentrate control over movie production and distribution, potentially leading to a single dominant global streaming platform [3]. - The association highlighted that a merger could result in a combined market share of up to 40% of the domestic box office for a single studio, which raises significant concerns about competition and diversity in film offerings [3][4]. - The group warned that further consolidation could lead to fewer movies being produced, as historical trends indicate that such mergers have consistently resulted in reduced film output [4]. Group 2: Impact on Theatrical Releases - Cinema United noted that the number of films produced for theatrical release is slowly returning to pre-2019 levels, but this growth is threatened by potential acquisitions [4]. - The association emphasized that an acquisition could stall recent growth in theatrical releases and may lead to a significant reduction in the number of films shown in theaters [4]. - Netflix's commitment to theatrical releases post-merger was questioned, with Cinema United stating that true commitment requires a robust slate of films and meaningful theatrical exclusivity [5][6]. Group 3: Industry Dialogue and Expectations - Cinema United has engaged with executives from both Netflix and Paramount, seeking more concrete commitments regarding theatrical releases and marketing support [6]. - The association's CEO, Michael O'Leary, stressed the importance of maintaining meaningful theatrical windows to ensure the success of films [6]. - Despite discussions, Cinema United remains firm in its belief that either acquisition would be detrimental to the exhibition sector [7].