Cinema United Urges Lawmakers to Scrutinize Potential Warner Bros. Sale

In a letter sent Wednesday to the House Judiciary Subcommittee on the Administrative State, Regulatory Reform and Antitrust , Cinema United, the exhibition trade group, urged federal lawmakers to closely scrutinize any potential sale of Warner Bros. The organization said it is particularly alarmed by the possibility of an acquisition by Netflix, warning that such a deal would deepen consolidation and threaten the long-term viability of theatrical exhibition.

“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,” Cinema United wrote. “Such an acquisition will further consolidate control over the 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 impact will not only be felt by theater owners, but by movie fans and surrounding businesses in communities of all sizes.”

While Netflix remains the primary focus of the group’s warning, Cinema United emphasized that alternative buyers would not necessarily ease its concerns. Should Netflix fail to complete a deal and Paramount or another legacy studio emerge as the purchaser, the organization said the competitive risks would remain substantial.

“If Paramount or another major studio ends up displacing Netflix as the buyer, our concerns are no less serious,” the letter states. “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.”

Netflix has attempted to reassure the industry amid ongoing consolidation speculation. Co-CEO Ted Sarandos has said the company would continue to honor existing theatrical commitments, while also suggesting that exclusive theatrical windows would “evolve” to become more “consumer-friendly.” Cinema United flagged that language as a warning sign.

“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,” the group warned. “Netflix has described theatrical distribution as ‘outmoded’ and reiterated its goal to make movies exclusively for Netflix members, distributed primarily on Netflix, not in theaters.”

To underscore its argument, Cinema United cited release-window data showing a stark contrast between Netflix and traditional studios. Since 2023, Netflix films have typically played in theaters for just 11 to 17 days, compared with an average of 46 days for major studio releases in 2024 and 58 days in 2023.

The organization also pointed to recent media mergers as cautionary examples. Following Amazon’s acquisition of MGM and Disney’s purchase of Fox, Cinema United noted that film output declined, adding that in Disney’s case, “the entities produced about half the movies they did annually pre-merger.”

“Movie theaters are cultural and economic anchors of their communities — to repeat, we are a Main Street industry,” Cinema United concluded. “That is what is at risk here if we sanction fewer movies in the marketplace. Theaters will close, communities will suffer, jobs will be lost.”