Cinema United, the exhibition trade group formerly known as NATO, has reiterated its opposition to the proposed sale of Warner Bros Discovery (WBD) to Netflix on the same day that WBD rejected the latest offer from rival bidder Paramount.
In written testimony to a House Judiciary Subcommittee hearing in the US Congress on Wednesday (January 7), Cinema United said it is “deeply concerned that this acquisition of Warner Bros by Netflix will have a direct and irreversible negative impact on movie theatres around the world.
“Such an acquisition will further consolidate control over production and distribution of motion pictures in the hands of a single, dominant, global streaming platform in a market that is already highly concentrated,” the statement continued. “The impact will not only be felt by theatre owners, but by movie fans and surrounding businesses in communities of all sizes.”
The cinema trade group also said its concerns “are no less serious” if Paramount or another major studio ends up pushing Netflix aside and buying WBD. “A combination of Paramount and Warner Bros, for instance, would consolidate as much as 40% of each year’s domestic box office in the hands of a single dominant studio,” the statement said.
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