Paramount merger sparks concern among movie theater owners

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Whitten is a social media writer for CNBC.

More consolidation, more problems — that’s the latest fear gripping the theatrical industry. After a monthslong negotiation process, Paramount and Skydance have struck a merger agreement. While the proposed union has been touted as perfect match by those involved, Hollywood’s cinema operators have their concerns. Namely, that continued consolidation in the industry will exacerbate production woes that have led to fewer film releases in recent years.

“Merger-phobia is a result of the concerns that theater owners have over the effect that a diminishing number of films in the marketplace has on their bottom line,” said Paul Dergarabedian, senior media analyst at Comscore. “It’s all about the product and a robust pipeline of big screen offerings keeps the industry humming along and ensures momentum, which is key to success at the multiplex.” Now showing The theatrical industry as a whole has struggled with a slower influx of titles.

 

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