Theater Owners Urge State Attorneys General To Oppose Paramount

Key Points:

• Michael O’Leary, head of Cinema United, has urged state attorneys general and political groups to investigate and block the proposed merger between Paramount and Warner Bros, citing concerns over reduced competition and harm to local communities.
• O’Leary warns that the consolidation from five major studios to four could lead to fewer jobs, higher ticket prices, fewer movie choices, and potential multiplex closures, drawing parallels to the decline in 20th Century Fox movies after Disney's acquisition.
• The merger is expected to negatively impact Main Street businesses, as local theaters drive significant foot traffic and economic activity for nearby restaurants, retail, and other small businesses, with billions in associated spending at risk.
• Paramount CEO David Ellison has pledged to maintain 30 theatrical releases annually post-merger, but Cinema United fears the combined entity may prioritize streaming and premium video on demand, bypassing theaters and harming the theatrical ecosystem.
• O’Leary emphasizes that smaller, independent theaters will suffer the most from the merger, threatening the social and economic fabric of local communities reliant on movie theaters as cultural and economic hubs.