Cinema United, a major lobbying group that represents theater owners in the United States and across the globe, has expressed support for California AG Rob Bonta (D) reaching a settlement with Paramount in its acquisition of Warner Bros. Discovery.
Cinema United CEO and President Michael O’Leary said in a statement that the acquisition will do well for theater owners considering Paramount’s pledge to release 30 films per year in movie theaters.
“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,” O’Leary said.
“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,” he continued. “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.”
O’Leary closed with expressed optimism that movie theaters will thrive again as the “beating heart of Main Street America and the entire U.S. film industry.”
“Our focus now shifts back to our bright future,” he concluded. “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.”
According to Variety, insiders at both Warner Bros. and Paramount were stunned that the studio reached a settlement with Bonta.
“Monday’s announcement of the settlement between Paramount and the 12 state AGs was met with some disbelief — and a feeling by insiders at both companies that the states ultimately didn’t succeed in demanding much from Paramount Skydance, despite all their posturing,” it noted. “And, according to staffers on both sides, whether the reality of a merged Paramount-Warner Bros. has produced relief or anxiety ‘depends on where you sit.’”