The annual gathering of theater owners at CinemaCon turned into a frank discussion about Hollywood's future this week, and the message was clear: consolidation among major studios is a threat to the entire industry.
Michael O'Leary, President and CEO of Cinema United, stepped up to warn attendees about the risks of allowing marketplace power to concentrate in fewer hands. Specifically, he highlighted concerns about a potential merger between Paramount and Warner Bros.—two of Hollywood's biggest distributors.
O'Leary's concerns are rooted in a simple but troubling reality: when fewer studios control more of the content pipeline, they gain disproportionate power to dictate terms to theaters. This includes deciding release windows, negotiating revenue splits, and setting conditions that smaller or independent cinemas struggle to meet.
"When you have a smaller group of distributors controlling the majority of theatrical releases, they essentially hold all the cards," O'Leary explained to the audience of theater owners who depend on studio content to keep their doors open.
The worry isn't just theoretical. Theater owners have already experienced how consolidation affects them. When major studios merge, they often reduce their slate of films, eliminate redundancies, and become more aggressive in their negotiation tactics. Independent theaters with limited negotiating power often bear the brunt of these changes.
Beyond the immediate business concerns, there's a broader cultural question at stake. A consolidated Hollywood might mean fewer diverse films get made, as merged studios prioritize blockbusters and sequels over experimental or niche content. This ripples down to theaters, which end up with less variety to offer audiences.
The message from CinemaCon was a call to action for industry regulators and policymakers to carefully examine any major studio mergers. Theater owners aren't asking for perfection—they're asking for a competitive marketplace where they have genuine negotiating power and audiences have real choices.
As streaming continues to reshape entertainment, the theatrical experience needs protecting, not weakening through unchecked consolidation.
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