Movie Theaters Oppose Paramount-Warner Bros. Merger
The recent developments surrounding the proposed merger between Paramount and Warner Bros. have sent shockwaves through the movie theater industry. As reports indicate, theater owners remain highly cautious about the implications of such consolidation. The concern is further heightened now that Netflix has withdrawn its bid for Warner Bros., allowing Paramount’s David Ellison to potentially finalize the acquisition.
Concerns Over Paramount-Warner Bros. Merger
Cinema United, the leading trade organization for movie exhibitors, has expressed serious worries about the proposed merger. There is apprehension regarding the concentration of power within the film industry. They fear a combined operation of Paramount and Warner Bros. could hold control over 40% of the annual domestic box office.
Industry Reactions and Historical Context
The potential merger has prompted past examples to surface, notably Disney’s acquisition of 20th Century Fox. This deal closed in 2019 for $71.3 billion, leading to a significant reduction in the number of films released. In 2016, Disney and Fox had 26 releases across over 2,000 theaters. By last year, that dropped by 46% to just 14 films.
- 2016: 26 titles from Disney and 20th Century Fox.
- 2022: Only 14 titles released, a 46% decline.
- Estimated box office decline: $900 million less in 2025 than in 2016, a 63% drop.
According to Cinema United, a similar reduction in releases could occur if the merger proceeds. This would limit diversity in the market and potentially harm box office revenues.
Political Involvement and Regulatory Scrutiny
The political landscape surrounding the merger is also complex. David Ellison has influential ties, including a relationship with former President Donald Trump. This connection raises questions about the dynamics of regulatory oversight concerning studio mergers.
Sens. Mike Lee and Cory Booker have shown interest in investigating the merger further. Following a recent Senate hearing, where Netflix co-CEO Ted Sarandos faced scrutiny, the focus is shifting to Ellison and Paramount’s plans. The expected March 4 follow-up hearing may bring further clarity to the ramifications of this merger.
The Role of State Authorities
California Attorney General Rob Bonta has made it clear that concerns about the Paramount-Warner Bros. merger merit serious consideration. His office is actively investigating the proposed transaction, stating that it is not yet finalized and may not clear necessary regulatory hurdles.
As discussions continue, the film industry watches closely. The implications of this merger could reshape the movie landscape for years to come, underscoring the importance of a balanced competition in cinema.
