Cinema United, a global theatrical exhibition trade organization, has called on California Attorney General Rob Bonta and a representative from Mr. Ellison to meet and discuss resolving the state's legal challenge to Paramount's proposed acquisition of Warner Bros. Discovery.
The organization, which has 196 members operating in the twelve states involved in the litigation, emphasized the significance of the theatrical exhibition industry, which supports not only studios and theater owners but also nearby restaurants, coffee shops, bars, and shopping. Most of its members are independent or family-owned theaters, with 130 operating fewer than ten screens, 90 with less than five screens, and 30 operating single-screen theaters.
Cinema United has outlined four core elements it believes any resolution must include: a long-term commitment to maintain or expand wide-release theatrical movie production with a meaningful period of theatrical exclusivity; provisions ensuring the merger will not increase rental terms for theater owners; enforceable safeguards to ensure broad access to films for theaters of all sizes; and continued access to the film catalogues of both Paramount and Warner Bros. under reasonable conditions.
The organization stands ready to assist and urges both parties to explore a resolution as soon as possible, citing the importance of resolving the matter to avoid any further disruptions to the industry.
Industry Impact
The theatrical exhibition industry plays a crucial role in supporting the film industry and local businesses. With 196 members operating in the twelve states involved in the litigation, Cinema United's call for a resolution is aimed at ensuring the continued health and viability of this important sector.
Key Demands
Cinema United has outlined four key demands for any resolution to the merger challenge:
- A long-term commitment to maintain or expand wide-release theatrical movie production with a meaningful period of theatrical exclusivity
- Provisions ensuring the merger will not increase rental terms for theater owners
- Enforceable safeguards to ensure broad access to films for theaters of all sizes
- Continued access to the film catalogues of both Paramount and Warner Bros. under reasonable conditions
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