The attitude among exhibitors towards the Paramount-Warner Bros. merger appears to be shifting, with the heads of theatre chains becoming anxious over the consequences of a lengthy litigation. Cinemark added its voice to AMC and Regal as major exhibitors calling for a swift resolution between California Attorney General Rob Bonta and Paramount CEO David Ellison.
A factor in the support offered by these exhibitors has been Paramount CEO Ellison offering a written commitment to release at least 30 new movies to theatres each year, beginning with a 45-day exclusive theatrical window and waiting at least 90 days before on-line availability on SVOD platforms. Cinemark CEO Sean Gamble explained his company’s decision to support the deal by explaining that, “prolonged uncertainty runs the risk of diverting time and resources away from achieving these (shared) priorities.”
Cinema United, the prominent trade organization for exhibitors, released a statement shortly after Cinemark’s that encouraged California AG Bonta and Paramount CEO Ellison to work in earnest to reach a settlement that allows the deal to go through. Cinema United President and CEO Michael O’Leary also added that a settlement should also include commitments by Paramount to maintain the current rental terms charged for its movies. Cinema United’s statement was co-signed by the CEOs of B&B Theatres, Cineplex, Marcus Theatres and other theatre chains. The statement marks a dramatic shift for Cinema United, who has previously railed against the deal. But Cinema United was under pressure to modify its previously held position once its three largest exhibitor-members came out in support of the deal.
