Cinema United CEO Sounds Alarm on Distributor Consolidation and Theatrical Window Threats at CinemaCon
Michael O’Leary, President and CEO of Cinema United, issued a stark warning to the assembled theater owners at CinemaCon, the industry’s premier annual gathering, regarding the escalating risks associated with the concentration of power within a select group of distributors. O’Leary articulated his deep concerns about the potential for these consolidated entities to dictate crucial aspects of the film industry, including terms of distribution, theatrical windows, movie scheduling, screen placement, and even access to valuable historical film catalogs.
"We are witnessing a dangerous trend of marketplace power consolidating into the hands of a smaller group of distributors who are increasingly dictating the terms, windows, scheduling, screen-placement of movies, and access to historic film catalogs," O’Leary stated during his address, underscoring the gravity of the situation for the entire exhibition sector.
The context for O’Leary’s impassioned plea is the ongoing, high-profile bid to acquire Warner Bros. Discovery, a studio that has recently delivered a series of critically and commercially successful films. Paramount’s CEO, David Ellison, has publicly expressed his intention to finalize the acquisition of Warner Bros. by the third quarter of the current year. Ellison has projected that a merged entity would release approximately 30 films annually. However, this projection is met with significant apprehension within the industry, with many fearing a reduction in the overall number of films produced for theatrical release and a substantial wave of job losses across various sectors of the entertainment landscape.
"The ongoing efforts to acquire Warner Bros., an iconic studio that delivered a truly spectacular 2025, are not just corporate maneuvers; they have a real and lasting impact on Main Street and millions of movie fans around the world," O’Leary emphasized, drawing a direct line from corporate consolidation to the broader economic and cultural fabric of communities.
The historical precedent for such large-scale mergers in the media and entertainment industry often points towards a contraction in content diversity and output. "Unfortunately, history shows us that consolidation results in fewer films being produced for movie theaters. We believe this transaction will be harmful to exhibition, consumers, and the entire entertainment eco-system," O’Leary declared, laying bare his conviction that the proposed merger poses a significant threat.
Cinema United, along with its industry allies, has been actively engaging with regulatory bodies, lawmakers, and state Attorneys General to highlight these concerns. The collective lobbying efforts aim to bring greater scrutiny to the potential antitrust implications of such significant consolidation.
The concerns voiced by O’Leary and Cinema United are not isolated. A powerful testament to the widespread apprehension within the creative community came this week with the release of an open letter signed by a distinguished roster of Hollywood luminaries, including JJ Abrams, Damon Lindelof, David Fincher, and Denis Villeneuve. This influential group lent their voices in opposition to the proposed merger, warning that it "threaten[s] the sustainability of the entire creative community." The collective appeal from these acclaimed filmmakers underscores the potential ramifications for artistic freedom and the long-term viability of diverse storytelling within Hollywood.
A Resurgent Theatrical Landscape Amidst Consolidation Fears
Despite the looming concerns about consolidation, the theatrical exhibition business is currently experiencing a period of marked improvement. Box office revenues have shown a healthy upward trajectory, and there has been a noticeable increase in the breadth and variety of content being released. Furthermore, positive developments have been observed regarding theatrical windows – the exclusive period a film plays in cinemas before becoming available on other platforms. However, O’Leary contends that these advancements, while welcome, are not yet sufficient to fully invigorate the market.
"After six-plus years of theories and experiments devoted to proving that theatrical’s days have passed, there is a growing recognition of something we have always known – theatrical exhibition is the foundation upon which the entire entertainment industry rests, and that will never change," O’Leary stated, reaffirming his unwavering belief in the enduring power of the cinematic experience.
A significant step forward in this area was announced by Universal Pictures, which declared that, beginning in January of the upcoming year, its films will adhere to a 45-day theatrical window. This move is a welcome development, but O’Leary stressed the need for broader industry adoption of longer exclusivity periods. He advocated for a minimum of 45 days, with an ideal benchmark of 60-plus days, akin to the windows maintained by Disney, to truly energize audiences, the industry, and boost box office performance.
The rationale behind advocating for longer windows is straightforward: consumer behavior is heavily influenced by the perceived availability of content. "People are less likely to run to the movie theater if they expect to catch the film shortly from their couch," O’Leary explained, highlighting the direct correlation between exclusivity and theatrical attendance.
Data on Theatrical Windows and the Gen Z Factor
O’Leary presented compelling data to illustrate the current state of theatrical windows and the potential for growth. In 2025, the average window for wide releases stood at 37 days, representing a modest three-day increase over the previous year. He projected that if all wide releases in 2025 had maintained a minimum 45-day window, the overall average would have been significantly longer, reaching 49 days – a substantial two-week extension.
"Progress is being made, and windows will remain a priority. For our part, exhibition should acknowledge and fully support those partners that are committed to meaningful theatrical exclusivity," O’Leary urged, calling for a collaborative approach between distributors and exhibitors. While the largest cinema chains generally adhere to minimum window requirements, the practice is not universally enforced, leading to inconsistencies.
Tom Rothman, Chairman and CEO of Sony Pictures Motion Picture Group, echoed the sentiment for greater consistency during Sony’s presentation at CinemaCon. He advised exhibitors to "Enforce longer windows even if that means you cannot play every film," emphasizing the strategic importance of prioritizing exclusivity to maintain the value of theatrical releases.
In a particularly insightful observation, O’Leary highlighted a promising demographic trend: Generation Z. He revealed that this age group, spanning from 12 to 28 years old, is emerging as the driving force behind moviegoing. The frequency of cinema visits among Gen Z has seen a remarkable 25% increase within a single year, making them the fastest-growing habitual movie-going demographic. This surge in engagement from younger audiences offers a vital beacon of hope for the future of theatrical exhibition.
"While attendance still lags previous highs, audience enthusiasm is not static. It changes every day, and these positive trends paint a brighter future," O’Leary concluded, offering a cautiously optimistic outlook on the resilience and adaptability of the movie theater industry, contingent on strategic decisions regarding content distribution and exclusivity.
The discourse at CinemaCon this year has underscored a critical juncture for the film industry. The potential for seismic shifts through major studio consolidation, coupled with the ongoing evolution of theatrical windowing strategies and the emergence of influential new demographics, presents both significant challenges and opportunities for the future of cinematic storytelling and exhibition. The industry’s ability to navigate these complex dynamics will ultimately determine its long-term health and vitality.
