After the CEOs of AMC Theatres and Regal Cinemas publicly backed a Paramount-Warner Bros. Discovery marriage, Cinemark is also appearing to throw its hat in with David Ellison’s team. That means that all three of the biggest exhibitors in the U.S. are now publicly aligning themselves against a court battle next year over the fate of two major Hollywood studios.
Cinemark released an unsigned statement saying that it favors an “expedited resolution” of the merger plan, in light of a court setting a date for a trial pitting California attorney general Rob Bonta vs. Paramount mogul David Ellison in March 2027. That appears to be a call for Bonta to settle the case and for Ellison to make some more concessions but ultimately allow the $111 billion deal to go through.
Cinemark did not put out a quote from an executive or its CEO Sean Gamble, unlike AMC or Regal, which had chiefs Adam Aron and Eduardo Acuna weigh in directly.
The 12 states suing Paramount argue that the merged studios will have undue influence over the supply of product to movie theaters. Their complaint states that the combined company will control 30 percent of movies that have earned $100 million-plus at the box office and have been bowed in 3,000 theaters for wide release. “Movie theatres rely on competition between Paramount and Warner Bros,” stated the complaint filed July 13. “Through this competition, theatres incentivize creativity and quality, and they secure competitive prices and terms for themselves and for audiences.”
Cinema United, the lobbying firm for major theaters led by Michael O’Leary, has used similar language, saying, “The ramifications of further movie studio consolidation will be significant and lasting, not just in Hollywood, but on Main Streets across this nation.” But shortly after Cinemark released its statement, the group publicly reversed course on its opposition to Paramount’s planned merger with Warner Bros. Discovery and now favors settlement talks as well.
“For many in our industry, the current environment is marked by disruption and uncertainty. That is why we believe that it is incumbent upon both of you to meet in good faith to discuss a resolution that would provide robust protections and serve the entire industry,” read Cinema United’s Aug. 18 about-face letter, signed by O’Leary.
Ellison has pledged that Paramount and Warner Bros. will be run as independent studios that will produce 30 movies theatrically annually, and he has committed to release that many titles in theaters for three years following the deal close. He’s also pledged to support theatrical windows of 45 days in theaters before heading to on-demand venues.
Cinemark’s full statement is below:
As we assess the current state of the theatrical exhibition industry, box office is tracking toward its strongest result in the past seven years driven by robust moviegoing momentum, positive consumer trends and a steadier cadence of varied and compelling film releases. We recently witnessed the biggest domestic box office weekend in history, and this summer is on the cusp of delivering record-level proceeds.
Moving forward, the enduring success of our industry requires a healthy theatrical ecosystem supported by financially sound studios and exhibitors that can effectively create, distribute and exhibit high-quality films to consumers around the world. With that in mind, we have consistently stated we would look favorably upon media consolidation that increases the quality and output of films released into theaters with sufficient marketing campaigns and theatrical windows, and that is backed by firm commitments to ensure follow-through. David Ellison and the leadership team at Paramount Skydance have repeatedly expressed their intent to release at least 30 films into theaters annually following a merger with Warner Bros. Discovery, with minimum windows of 45 days to PVOD and 90 days to SVOD. Moreover, they are now offering to put those pledges into written commitments and consent decrees. These are conditions and formal assurances that align with our long-held views, which we at Cinemark support.
Strong partnership and collaboration throughout our industry are also essential drivers in sustaining a vibrant moviegoing environment. In that spirit, we are highly encouraged by constructive dialogue taking place between Paramount Skydance and Cinema United, our trade organization, regarding the specifics of Paramount Skydance’s proposed commitments. We respect and appreciate Cinema United’s advocacy on behalf of all theatrical exhibition and view these conversations as meaningful progress toward achieving outcomes that support our industry’s long-term health and success.
We collectively benefit most when all stakeholders work together in pursuit of shared industry objectives, including creating and releasing compelling films, attracting audiences to theaters and fostering long-term growth. To that end, we join those who have recently called for an expedited resolution of the proposed Paramount Skydance and Warner Bros. Discovery merger as prolonged uncertainty runs the risk of diverting time and resources away from achieving these priorities.
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