The annual gathering of theater owners in Las Vegas has long been a celebration of the silver screen’s resilience, but this year’s CinemaCon was marked by a stark warning. Michael O’Leary, President and CEO of Cinema United, used his “State of the Union” address to put the industry on high alert regarding the proposed merger between Paramount and Warner Bros., arguing that the deal could fundamentally destabilize the theatrical ecosystem.
At the heart of the concern is the Paramount Warner Bros merger impact on cinemas and the potential for an unprecedented concentration of marketplace power. O’Leary warned that consolidating two of Hollywood’s most historic studios into a single entity would exit far too much control in the hands of a shrinking group of distributors. These power players, he argued, would effectively dictate everything from scheduling and screen placement to the terms of theatrical windows and access to vital film catalogs.
The anxiety in the room reflects a broader fear that corporate consolidation inevitably leads to a thinner slate of films. While Paramount chief David Ellison has publicly promised a steady output of 30 films per year, industry veterans remain skeptical. History, O’Leary noted, suggests that when studios merge, the resulting “synergies” often manifest as fewer original projects and steep job losses across the production pipeline.
A Creative Community in Alarm
The pushback against the merger is not limited to the business owners who operate the projectors. Some of the most influential voices in modern cinema have joined the fray, viewing the consolidation as a threat to artistic diversity. This week, an open letter signed by heavyweights including J.J. Abrams, David Fincher, Denis Villeneuve, and Damon Lindelof warned that the transaction could “threaten the sustainability of the entire creative community.”
For these filmmakers, the risk is not just about the number of movies produced, but the nature of the content. A consolidated studio system often prioritizes safe, franchise-driven bets over the mid-budget, risky dramas that historically define the cinematic experience. Cinema United and its allies have already begun pressing regulators, state attorneys general, and lawmakers to scrutinize the deal’s impact on competition.
The Battle Over the Theatrical Window
Beyond the merger itself, the industry is locked in a struggle over “windowing”—the period during which a film plays exclusively in theaters before moving to streaming or digital purchase. O’Leary argued that the foundation of the entire entertainment industry rests on theatrical exhibition, but that foundation is only secure if audiences have a reason to leave their couches.
There has been some positive movement. In January, Universal Pictures announced that its films would maintain a 45-day theatrical window. However, O’Leary maintains that What we have is still a baseline rather than a gold standard. To truly energize the box office, the industry needs a broad adoption of at least 45 days, with a preference for the 60-plus day range currently utilized by The Walt Disney Company.
The data supports the need for consistency. In 2025, the average window for wide releases was 37 days, a slight increase of three days over the previous year. O’Leary pointed out that if every wide release had adhered to a minimum 45-day window, the overall average would have jumped to 49 days—a full two weeks of additional exclusivity that could significantly boost revenue for local theaters.
| Entity/Period | Window Duration | Status |
|---|---|---|
| 2025 Average (Wide Releases) | 37 Days | Historical Actual |
| Universal Pictures | 45 Days | Current Policy |
| Cinema United Target | 45-60+ Days | Industry Goal |
| Disney (Typical) | 60+ Days | Industry Benchmark |
This sentiment was echoed by Tom Rothman, chairman and CEO of Sony Pictures Motion Picture Group. During a recent presentation, Rothman urged theater owners to prioritize consistency over volume, suggesting they should enforce longer windows even if it means they cannot play every single film offered by distributors.
The Gen Z Renaissance
Despite the looming corporate battles, there is a surprising silver lining driving optimism for the future of the movie-going experience. According to data shared by O’Leary, Gen Z is currently setting the pace for the industry’s recovery. Movie-going frequency among the 12-to-28-year-old demographic has risen by 25% in a single year, making them the fastest-growing habitual movie-going group.
This surge suggests that while the “death of cinema” has been predicted for years, the desire for a shared, immersive experience remains potent among younger audiences. While overall attendance has not yet returned to pre-pandemic peaks, the enthusiasm of this demographic provides a critical lifeline for exhibitors.
The tension now lies in whether the industry can protect this momentum. If a consolidated Paramount-Warner Bros. Entity dictates terms that limit the variety of films or slash the theatrical window, the industry risks alienating the very audience that is currently bringing life back to the lobby.
The next major milestone for the merger is expected in the third quarter, the timeframe David Ellison has targeted for closing the deal. All eyes will be on federal regulators to see if the concerns raised by Cinema United and the creative community will lead to required divestitures or a block of the merger entirely.
Do you think studio consolidation helps or hurts the movies we see on screen? Share your thoughts in the comments below.
