Hollywood’s power struggle just landed on Capitol Hill.
Movie theater chains are sounding alarm bells as streaming giants circle Warner Bros. like sharks sensing blood in the water.
Cinema United, representing theater owners worldwide, fired off urgent testimony to Congress this week warning that any sale of Warner Bros. could spell disaster for the big screen experience.
The stakes? Nothing less than survival of theaters as we know them.
Theater Owners Draw Battle Lines
Cinema United didn’t mince words in written remarks sent Wednesday to the House Judiciary Subcommittee on Administrative State, Regulatory Reform, and Antitrust.
We are deeply concerned that this acquisition of Warner Bros. by Netflix will have a direct and irreversible negative impact on movie theaters around the world.
CEO Michael O’Leary, leading the charge for exhibitors globally, painted a grim picture of consolidation run amok.
The organization argues that handing Warner Bros. to Netflix would create an entertainment behemoth with unprecedented control over both production and distribution.
Netflix Versus Paramount: A Billion-Dollar Cage Match
Two entertainment titans are currently locked in heated negotiations over Warner Bros. Discovery, battling over price tags and deal structures that could reshape Hollywood forever.
But theater owners see threats from both potential buyers.
Netflix presents one existential problem: their business model fundamentally excludes theatrical releases. Films go straight to streaming, bypassing multiplexes entirely.
Paramount represents a different danger—massive market consolidation.
The 40 Percent Problem
If Paramount or another major studio ends up displacing Netflix as the buyer, our concerns are no less serious. A combination of Paramount and Warner Bros., for instance, would consolidate as much as 40 percent of each year’s domestic box office in the hands of a single dominant studio.
Forty percent of annual domestic box office revenue controlled by one entity would represent unprecedented concentration of power in Hollywood.
Theater chains worry this creates a dangerous imbalance in negotiations over screening rights, revenue splits, and release windows.
What’s Actually At Stake For Moviegoers
Cinema United outlined specific threats that would ripple from either acquisition scenario:
- Reduced film output: Fewer movies making it to theaters as studios consolidate production
- Limited consumer choice: Multiplexes offering narrower selection of films
- Theatrical window erosion: Shorter exclusive periods before streaming release
- Independent theater casualties: Smaller chains unable to negotiate favorable terms
The backdrop makes these concerns particularly acute. Hollywood has already undergone significant merger and acquisition activity in recent years, leaving fewer major players controlling more content than ever before.
The Netflix Factor: Hostility Toward Theaters
Cinema United didn’t hold back when describing Netflix’s relationship with theatrical exhibition.
Amid this backdrop of significant M&A activity, Netflix is now seeking to acquire Warner Bros., a streaming competitor that controls a significant library of shows and movies. If Netflix’s proposed acquisition of Warner Bros. is not challenged, the threat to our members is grave — and possibly even existential — given its hostility toward exhibition.
That word—existential—captures just how seriously theater owners view this potential deal.
Netflix has historically resisted theatrical windows, preferring day-and-date streaming releases or limited theatrical runs purely for awards eligibility.
Warner Bros.’ Massive Library In Play
Warner Bros. isn’t just another studio. The company controls one of Hollywood’s most valuable assets: an enormous library spanning decades of iconic films and franchises.
From Batman to Harry Potter, from classic Turner library titles to HBO prestige content, Warner Bros. represents a treasure trove of intellectual property.
Whoever acquires Warner Bros. doesn’t just gain current production capacity—they inherit decades of content that can be monetized across platforms.
For Netflix, that library would supercharge their streaming offerings while potentially keeping those titles permanently away from theaters.
Congress Weighs In
Cinema United strategically directed their concerns to lawmakers with antitrust oversight authority.
The House Judiciary Subcommittee hearing represents theater owners’ best shot at regulatory intervention before any deal closes.
Antitrust scrutiny has intensified across industries in recent years, with regulators taking harder looks at mergers that could reduce competition or harm consumers.
Theater chains are essentially asking Congress to block—or at minimum, heavily condition—any Warner Bros. acquisition that threatens theatrical exhibition.
More Than Just Business
Behind the corporate maneuvering sits a fundamental question about entertainment’s future: will communal theatrical experiences survive the streaming era?
Cinema United’s testimony frames this as more than protecting business interests—it’s about preserving consumer choice and cultural touchstones.
Movie theaters argue they provide irreplaceable social experiences that can’t be replicated on home screens, no matter how large.
Whether Congress intervenes remains uncertain, but theater chains have made their position crystal clear: any Warner Bros. sale poses existential risks they cannot afford to ignore.