Theater owners urge attorneys general over Paramount-WBD merger
Head of the movie theater advocacy group, Michael O’Leary, issued some letters this week
Nine days ahead of Cinema United facing Paramount executives at their Las Vegas meeting, CinemaCon, the head of the movie theater advocacy group, Michael O’Leary, issued some letters this week.
He reached out to the National Association of Attorneys General, the Democratic Attorneys General Association, and the Republican Attorneys General Association concerning the Melrose Lot studio's upcoming union with Warner Bros, stating, “I strongly encourage a thorough investigation and move to prevent this proposed merger to ensure it does not impact competition or our local communities negatively.”
Collapsing the motion picture studios from five to four would mean fewer jobs, limited choices for moviegoers, increased ticket prices, more strained rental terms on cinemas by studios, potential theater closures, and declining ticket sales.
Consider what occurred with 20th Century Fox films after the Disney-Fox merger (a $1 billion decrease in revenue in 2025 compared to 2016, a 70% drop).
“Following our analysis of the proposed merger between Paramount and Warner Bros., we see no reason to believe the results would differ,” notes O’Leary.
Still, there’s a wider impact, as the Paramount-Warner Bros Discovery merger will most detrimentally affect Main Street America.
O’Leary writes: “Our members’ theaters are Main Street businesses, not Hollywood enterprises. They are crucial cultural and economic engines for the communities they serve. A thriving theater boosts foot traffic, supports nearby small businesses, and retains local dollars within our communities. Recent studies show that for every dollar spent at a local movie theater, an additional $1.50 is spent in surrounding community businesses—including local eateries, bars, shopping centers, transport services, and other local businesses.”
Without the movie theater and accompanying foot traffic due to this merger, the community ecosystem suffers, according to Cinema United, “where spending on dining and retail connected to movie visits nationwide totals billions of dollars for local restaurants and retail spots.”
Paramount CEO David Ellison assured that the new merger aims to sustain 30 theatrical releases a year.
While it’s an organic slate increase expected with the incorporation of Warner Bros, the concern for many is regarding the future.