WASHINGTON, D.C. – (Jan. 7, 2026) – Today, Cinema United, the world’s largest exhibition trade association representing more than 31,000 movie screens across all 50 states and over 30,000 additional screens in 80 countries worldwide, submitted written testimony to the House Judiciary Subcommittee on the Administrative State, Regulatory Reform, and Antitrust hearing on the myriad harms caused by the proposed acquisition of the iconic Warner Bros. studio.
In the statement, Cinema United advocated: “We are deeply concerned that this acquisition of Warner Bros. by Netflix will have a direct and irreversible negative impact on movie theatres around the world. Such an acquisition will further consolidate control over 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 theatre owners, but by movie fans and surrounding businesses in communities of all sizes.”
Cinema United extended its concerns of the proposed Warner Bros. merger beyond Netflix, adding: “If Paramount or another major studio ends up displacing Netflix as the buyer, our concerns are no less serious. 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.”
The statement outlined four primary harms to the industry caused by consolidation, namely, Fewer Movies Produced for Theatrical Exhibition, Increased Marketplace Leverage for Studios vis-à-vis Theatre Owners, Reduced Diversity of Films for Movie Fans, and Job Losses Across the Entertainment Industry and in Communities Worldwide.
“The key to a successful industry overall is having a diverse, robust, and consistent product pipeline that responds to consumer demand. The number of films being produced for theatrical exhibition is slowly returning to pre-2019 levels. However, that growth is threatened by further consolidation. At best, an acquisition of Warner Bros. will stall the growth we have seen in the last four years. More realistically, however, it will result in a significant reduction of theatrical releases.”
The statement concluded: “We must heed the lessons of the past: further industry consolidation has consistently led to fewer movies being made, and there is no reason whatsoever to believe the outcome here would be any different, particularly given Netflix’s stated views of movie theatres over the past decade-plus.”
For a PDF copy of the full statement, click here.
ABOUT CINEMA UNITED
Founded in 1948, Cinema United is the largest exhibition trade organization in the world, representing 31,000 movie screens in all 50 U.S. states and Canada, with an additional more than 30,000 screens in 80 countries. Its membership includes theatres of all sizes, from the largest cinema chains to one-screen theatres in cities and towns around the world. For additional information, please visit cinemaunited.org.
