Cinema United Intensifies Opposition to Proposed Paramount, Warner Merger at CinemaCon

The proposed merger between Paramount Skydance and Warner Bros. Discovery has become one of the defining flashpoints at this year’s CinemaCon in Las Vegas, with cinema operators warning that another major round of studio consolidation could damage moviegoing, reduce consumer choice, and further destabilise the theatrical marketplace.

Cinema United, the trade body representing theatre owners, used the convention to make clear that it will continue fighting the deal at both state and federal level. The organisation argues that combining two of Hollywood’s major studios would place even more power in the hands of fewer distributors, giving them greater control over release windows, scheduling, screen allocation, and access to valuable film libraries. For exhibitors, the concern is not only theoretical. They see consolidation as a pattern that has historically resulted in fewer films being made specifically for cinemas, placing added pressure on theatres already navigating a fragile recovery period.

The merger has emerged as one of the most politically charged topics at the convention, with visible protest branding circulating throughout CinemaCon and growing public opposition from the creative community. Nearly 1,000 artists and filmmakers have reportedly signed a letter objecting to the transaction, adding momentum to the exhibitors’ campaign and turning the issue into a broader debate about the future shape of the entertainment industry.

Cinema United president and chief executive Michael O’Leary told industry attendees that, if the merger ultimately proceeds, the organisation will push for safeguards designed to protect theatrical exhibition. Those proposed guardrails include commitments around the number of films produced and the level of marketing investment behind theatrical releases. The goal would be to prevent a merged company from using promised production targets as a selling point during regulatory scrutiny, only to later scale back output in response to debt pressures and cost cutting.

That scepticism is rooted in the economics of the deal itself. Paramount chief executive David Ellison has said the merged company would aim to release 30 films annually, split evenly between the two studios. But exhibitors are questioning whether that target is realistic, particularly given the heavy debt load expected to sit on the combined company’s balance sheet. For theatre owners, a lower volume of films would mean fewer opportunities to draw audiences and a thinner release calendar, something many cinemas believe the market can ill afford.

Even with the merger cloud hanging over the convention, exhibitors also struck a more optimistic note about the state of theatrical business. O’Leary highlighted the strong performance of PG-rated films, several of which crossed the billion-dollar mark last year, as evidence that broad audience appeal remains one of cinema’s greatest strengths. He also pointed to improving box office momentum this year, particularly among younger audiences, as a sign that moviegoing remains resilient and capable of rebuilding after years of disruption.

Another notable development at CinemaCon was a meeting between Cinema United’s board and Netflix co-chief executive Ted Sarandos. The meeting had originally been scheduled when Netflix was still considered a possible suitor for Warner, and it revived questions about the relationship between streaming platforms and theatrical exhibition. O’Leary said the discussion focused on whether a more cooperative future could be forged between exhibitors and the streaming giant, suggesting that while tensions remain, dialogue is continuing.

The convention also placed a spotlight on another major industry anxiety, the ongoing migration of film production work overseas. Motion Picture Assn. chairman and chief executive Charles Rivkin used his address to emphasise efforts to secure a federal film tax incentive in the United States, an initiative being pursued in collaboration with Hollywood stakeholders, congressional leaders, and President Trump’s appointed Hollywood ambassadors. The hope is that a federal incentive, layered on top of existing state tax credit programs, could make domestic production more competitive and help stem the outflow of jobs and investment.

That issue has become increasingly urgent for Hollywood, as more productions chase attractive international subsidies and lower production costs abroad. While states such as California have strengthened their own tax credit offerings, many in the industry believe state programs alone are no longer enough. A federal incentive is increasingly seen as necessary if the U.S. wants to regain ground in the global competition for film and television production.

Taken together, the debates dominating CinemaCon reveal an industry wrestling with two overlapping questions, who controls the future of filmed entertainment, and where that future will actually be made. For theatre owners, the answer to the first question cannot be further consolidation without meaningful protections. For studios and lobby groups, the answer to the second may depend on whether Washington is willing to back Hollywood with the kind of national production incentives other countries already offer.

At a moment when cinemas are finally beginning to recover audience momentum, exhibitors are making clear they do not want that recovery undermined by corporate dealmaking that could reduce output, shrink competition, and concentrate power even further at the top of the industry.

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