Cinema United CEO Warns of Market Power in Paramount-Warner Bros. Merger
The President and CEO of Cinema United, Michael O’Leary, recently raised concerns about market consolidation among major film distributors during a significant event for theater owners. He highlighted the risks associated with the potential merger between Paramount and Warner Bros. This acquisition could place considerable power in the hands of a few distributors, impacting the terms of film exhibitions, scheduling, and access to classic film collections.
Cinema United’s Alert on Market Power
O’Leary addressed attendees at CinemaCon in Las Vegas, warning that the merger could negatively affect millions of movie fans and local communities. He emphasized that mergers and acquisitions in the film industry often lead to fewer films being produced and increased job losses. Paramount’s chief, David Ellison, has expressed intentions to finalize the deal in the third quarter of this year, promising an output of 30 films annually. However, the industry remains skeptical.
Industry Voices Against the Merger
A growing number of Hollywood leaders, including J.J. Abrams and David Fincher, have publicly opposed the merger. They signed an open letter expressing concerns that the merger threatens the sustainability of the creative community. As the theatrical landscape improves with increasing box office revenues, there remains apprehension about the future of film exhibition if the merger proceeds.
Changing Theatrical Windows
- Universal Pictures announced a 45-day theatrical window starting January.
- The average window for wide releases was noted as 37 days in 2025, up from 34 days in 2024.
- If all films had a 45-day window last year, the average would have been 49 days.
O’Leary stressed the need for longer theatrical window periods, arguing that audiences may hesitate to visit cinemas if they know films will soon be available for home viewing. He urged for an industry-wide acknowledgment and support for partners willing to provide extended theatrical exclusivity. Consistency around film windows was also advocated by Tom Rothman, CEO of Sony Pictures, emphasizing the necessity of maintaining longer windows for theatrical releases.
Demographics and the Future of Cinema
Interestingly, Gen Z is emerging as a key demographic in cinema attendance. O’Leary noted a remarkable 25% increase in moviegoing frequency among individuals aged 12 to 28 in the past year. This trend indicates that while overall attendance may still be below historical highs, audience enthusiasm is on the rise.
The potential mergers in the film industry pose significant implications for distribution power. As Cinema United continues to engage regulators and lawmakers, the conversation surrounding the Paramount-Warner Bros. merger and its effects on the movie landscape remains critical. The path forward for cinema will depend on balancing the interests of producers, exhibitors, and audiences alike.
