Decrees have been the rules of the road for Hollywood since the golden age of movies, but the Justice Department’s decision to do away with directives that were hammered out decades before the rise of cable or streaming has barely registered within the entertainment industry.
For one thing, the rules failed to include one key player, the Walt Disney Company, which was not part of the restrictions because they were not a target of the original lawsuit that brought these regulations into effect. Moreover, the entertainment landscape has changed so dramatically since the consent decrees were enacted that the companies being governed by the restrictions have changed almost beyond recognition.
“No studio wants to own a theater right now,” said Eric Handler, an analyst with MKM Partners. “They’re all focused on launching their SVOD and direct-to-consumer services.” Insiders say that the move came as part of a larger deregulatory push by the Trump administration and was not initiated at the urging of movie studios or theater owners, though both were consulted. In the exhibition community, theater owners were clear that they wanted the ban on block booking to stay in place.
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