Cinema United, the trade group representing movie theater owners in the United States and worldwide, has come out in support of a settlement between California Attorney General Rob Bonta (D) and Paramount over the studio’s acquisition of Warner Bros. Discovery.
Cinema United CEO and President Michael O’Leary said the deal works in favor of theater owners, pointing to Paramount’s pledge to release 30 films per year in 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.
O’Leary said the consent decree hits several of the exhibition industry’s key targets.
“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 said. “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 said he expects movie theaters to regain their footing as, in his words, the “beating heart of Main Street America and the entire U.S. film industry.”
“Our focus now shifts back to our bright future,” he said. “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.”
Not everyone inside the two studios expected the fight to end this way. Variety reported that staffers at both Warner Bros. and Paramount were caught off guard when the settlement with Bonta was announced.
“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,” Variety reported. “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.'”
The settlement resolves a legal challenge brought by a dozen state attorneys general against the Paramount-Warner Bros. Discovery deal, one of the largest media mergers in recent years.
