Cinema United's Opposition to Paramount's Acquisition of Warner Bros.

Cinema United CEO Michael O’Leary emphasizes the ongoing recovery of the cinema industry post-COVID-19, noting a resurgence in attendance, particularly among Gen Z audiences. Despite a rebound in box office revenues, the industry remains significantly below pre-pandemic levels. O’Leary highlights the importance of theaters as community hubs, stating, “Theater owners are the connective tissue of their communities.” As he prepares for CinemaCon, O’Leary aims to address both the successes and existential threats facing cinemas, particularly the potential merger of Paramount and Warner Bros.

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O’Leary expresses strong opposition to the proposed acquisition of Warner Bros. by Paramount, citing concerns about industry consolidation. He argues that such mergers reduce consumer choices and threaten jobs within the sector. O’Leary states, “If Paramount buys Warner Bros. and production drops, there’s no question that theaters will close.” He draws parallels to the impact of Disney's acquisition of 20th Century Fox, which he believes contributed to theater closures. O’Leary advocates for Warner Bros. to remain an independent entity, asserting, “If it’s not broke, don’t fix it.”

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The potential merger poses significant risks not only to the cinema industry but also to local economies. O’Leary warns that the closure of theaters would have a ripple effect on surrounding businesses, stating, “If cinemas close, there’s going to be a ripple effect. It’s bad news for the economic health of entire communities.” He emphasizes the cultural importance of theaters as spaces for shared experiences among diverse audiences.

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While Paramount has promised to increase film production to 30 titles annually if the merger is approved, O’Leary remains skeptical about the feasibility of this plan given Paramount's substantial debt, which exceeds $80 billion. He questions how the company can sustain such production levels while managing its financial obligations. O’Leary notes, “There are people smarter than I am that think the debt is manageable. But there’s no shortage of people that take a contrary view.”

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O’Leary has articulated his concerns regarding the merger in various forums, emphasizing the need for a sustainable business model in the cinema industry. He has called for a reevaluation of the traditional release window and expressed hope that companies like Netflix might engage more meaningfully with theatrical releases. He acknowledges the skepticism surrounding Netflix's commitment to the theatrical experience but remains open to collaboration.

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• “We’re starting to see the audience regenerate, particularly with younger generations showing real enthusiasm for going to the theater,” — Michael O’Leary, CEO of Cinema United

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• “If it’s not broke, don’t fix it.” — Michael O’Leary, CEO of Cinema United

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• “If cinemas close, there’s going to be a ripple effect.” — Michael O’Leary, CEO of Cinema United

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• “There are people smarter than I am that think the debt is manageable.” — Michael O’Leary, CEO of Cinema United

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As the industry awaits regulatory decisions on the Paramount-Warner Bros. merger, O’Leary and Cinema United will continue to lobby for the preservation of independent theaters and advocate for a sustainable future in cinema. The outcome of this merger could reshape the landscape of the film industry and its economic implications for communities nationwide.

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