The debate around the possible sale of Warner Bros. is heating up — and movie theater owners are making their fears loud and clear. Cinema United, the trade body representing cinema exhibitors, has formally warned U.S. lawmakers that selling Warner Bros. to another media giant could seriously damage the theatrical ecosystem, leading to fewer films, shuttered theaters, and widespread job losses.
In a letter sent to the House Judiciary Subcommittee on Antitrust and Regulatory Reform, Cinema United laid out its concerns, focusing largely on the potential consequences if Netflix acquires Warner Bros. — but also making it clear that other buyers aren’t necessarily safer alternatives.
Why Theater Owners Are Worried
Cinema United argues that losing Warner Bros. as an independent studio would reduce the overall number of films released into theaters. According to the group, fewer movies mean less foot traffic, weaker box office returns, and ultimately, theaters struggling to survive — especially in smaller towns.
The organization warned that a Warner Bros.–Netflix deal would further concentrate power in an industry that is already heavily consolidated. Their concern isn’t just about theater owners, but also about moviegoers and the surrounding local businesses that rely on cinemas as economic hubs.
In simple terms, Cinema United believes that handing more control over film production and distribution to a single dominant streamer could permanently weaken the theatrical model.
Netflix Under the Spotlight
Much of Cinema United’s criticism was directed at Netflix’s long-standing skepticism toward theatrical releases. While Netflix executives have said they would honor Warner Bros.’ existing cinema commitments, the group remains unconvinced.
Netflix co-CEO Ted Sarandos has previously suggested that traditional theatrical release windows will “evolve” to become more “consumer-friendly” — language that theaters interpret as shorter exclusive runs.
Cinema United pointed out that Netflix films typically play in theaters for just 11 to 17 days, compared to 46 days in 2024 and 58 days in 2023 for major studio releases. That difference, they argue, is the difference between a film being profitable for theaters or barely surviving its run.
The group also cited Netflix’s past statements describing theatrical distribution as “outmoded,” reinforcing fears that cinemas would be sidelined in favor of streaming-first releases.
Paramount Isn’t a Perfect Solution Either
Interestingly, Cinema United made it clear that Netflix isn’t the only concern. If Paramount — which has been aggressively pursuing Warner Bros. — were to succeed instead, the group says the risks remain significant.
A Paramount–Warner Bros. combination, they noted, could control up to 40% of the U.S. domestic box office, creating another dominant force that could limit competition, reduce film output, and squeeze exhibitors.
In other words, from the theater industry’s perspective, any major consolidation involving Warner Bros. raises red flags.
Lessons From Past Mergers
Cinema United also pointed to recent industry history to back up its fears. Mergers such as Disney’s acquisition of Fox and Amazon’s purchase of MGM were followed by noticeable reductions in the number of films released theatrically.
In Disney’s case, the group claims film output dropped to nearly half of pre-merger levels, shrinking the supply of content that theaters depend on to stay viable year-round.
Beyond Box Office Numbers
The group stressed that theaters are more than just entertainment venues. According to Cinema United, cinemas serve as cultural and economic anchors, particularly in local communities where they support nearby restaurants, retail, and employment.
Their warning was blunt:
If studios make fewer movies for theaters, cinemas will close.
If cinemas close, communities will suffer.
And if that happens, jobs will be lost.
Final Words
As regulators weigh the future of Warner Bros., Cinema United wants lawmakers to understand that this isn’t just a corporate deal — it’s a decision that could reshape the moviegoing experience for millions.
Whether Netflix, Paramount, or another major player emerges as the buyer, theater owners fear the outcome could accelerate a shift away from cinemas altogether. And once that infrastructure is gone, they argue, it won’t be easy — or even possible — to rebuild.
