Cinema United CEO cautions against market power shift in Paramount-Warner Bros. merger

The President and CEO of Cinema United, Michael O’Leary, sounded the alarm at the largest annual gathering of theater owners today about the dangers of "concentrating market influence in the hands of a few distributors who control the terms, release timings, movie scheduling, screen placements, and access to classic movie collections."

Highlighting "ongoing plans to purchase Warner Bros., the legendary studio that achieved an impressive 2025," he noted that mergers and acquisitions in this field have "significant and long-lasting effects on local communities and countless movie enthusiasts worldwide."

Paramount's leader, David Ellison, stated his goal is to finalise the acquisition in the third quarter.

He has committed to producing 30 films annually, though there are concerns in the industry about a potential decrease in numbers and significant job reductions.

"Historically, consolidation unfortunately leads to fewer films being created for theaters. We are convinced that this merger will negatively affect exhibitors, consumers, and the broader entertainment ecosystem," O’Leary remarked in his State of Union speech at CinemaCon in Las Vegas.

The organisation and its partners have been discussing their concerns with regulators, lawmakers, and state Attorneys General.

Prominent Hollywood names such as JJ Abrams, Damon Lindelof, David Fincher, and Denis Villeneuve supported an open letter this week opposing the proposed merger, warning it could "endanger the entire creative community's sustainability."

As the merger approaches, the theater sector looks more promising than it has in recent years in terms of box office performance and the variety of content.

There's also been favorable movement regarding release timelines, though there is still room for improvement, says O’Leary.

From January, Universal Pictures announced that its films would have a 45-day theater-only run.

"After more than six years of testing the theory that theaters were becoming obsolete, there's an increasing acknowledgment of something we've always understood – that theaters provide the foundation for the entire entertainment industry, a fact that remains constant," O’Leary expressed.

However, adopting a 45-day or longer window, ideally extending 60 days or more as Disney does, would truly invigorate audiences, the industry, and box office numbers.

In 2025, wide releases had an average 37-day window, an increase of three days from 2024, mentioned O’Leary.

If all films released last year had at least a 45-day gap, the average would extend to 49 days, a full two-week improvement.