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Hollywood theater owners are worried a Paramount-Skydance merger will usher in too much consolidation

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Paramount and Skydance have long been production partners, co-financing and distributing around 30 films.

Hollywood's theater owners worry that continued consolidation in the industry will exacerbate production woes that have led to fewer film releases in recent years.

Paramount and Skydance have long been production partners, co-financing and distributing films from the Mission Impossible, Star Trek, Terminator and Transformers franchises, among others. "However, despite being a volume driven business, it's more about the quality of the releases and their appeal to audiences than sheer quantity," said Dergarabedian."If you have fewer films chasing the same dollars that's not necessarily a bad thing. If there are fewer films but the average revenue per film is higher than in a more crowded movie marketplace, then that's a lean and mean and ultimately more sustainable business in the long run.

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