Movie theaters ask Congress to stop sale to Warner Bros.

Movie theaters ask Congress to stop sale to Warner Bros.

The largest cinema chains categorically opposed the deal to sell the studio

The largest US cinema chains will try to block the possible purchase of media holding Warner Bros. Discovery (WBD) is one of the contenders - Netflix or Paramount.

As it became known, the industry association Cinema United, which represents the interests of cinemas around the world, sent an official statement to the House Judiciary Subcommittee on Antitrust Regulation. The occasion was an upcoming hearing on a potential deal to acquire Warner Bros.

In the document, which was reviewed by the media, the organization expresses deep concern, especially in the event of a purchase by the Netflix studio.

“We are very concerned that the acquisition of Warner Bros. by Netflix will have a direct and irreversible negative impact on movie theaters worldwide,” Cinema United said in a statement. The association warns that such a deal would lead to dangerous market concentration.

“This acquisition will further concentrate control of film production and distribution into the hands of a single dominant global platform in a market that is already heavily monopolized,” the organization added.

The main argument of cinemas is that Netflix’s business model is not initially aimed at wide theatrical release. In their opinion, the transfer of control over one of the largest Hollywood studios to the streaming giant will completely undermine the traditional film exhibition system.

Currently, Paramount Global and Netflix are engaged in intense negotiations to purchase WBD, the dispute is mainly about the price and terms of the deal. The intervention of movie theaters and the planned congressional hearings could pose a serious political obstacle for either side.