• Economy
  • Editor’s Pick
Money Rise Today – Investing and Stock News
  • Investing
  • Stock
Stock

Paramount merger sparks concern among movie theater owners

by July 10, 2024
written by July 10, 2024

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.

“A merger that results in fewer movies being produced will not only hurt consumers and result in less revenue, but negatively impact people who work in all sectors of this great industry — creative, distribution and exhibition,” Michael O’Leary, president and CEO of the National Association of Theatre Owners, or NATO, said in a statement Monday.

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.

Skydance founder David Ellison during an investor call Monday touted that Paramount and Skydance have produced 30 feature films together. He said the deal would “unify the key rights to several of Paramount’s most iconic franchises” and “allow us to expand franchise management.”

However, each company has other producing partners, and it is unclear how this merger could affect production going forward.

“The entire industry will be closely following how Skydance and Paramount’s release slate evolves in the coming years,” said Shawn Robbins, founder and owner of Box Office Theory. “I think it’s fair to say there’s cautious optimism right now. It’s a different situation than if another major studio had stepped in to acquire Paramount, which would have more likely cannibalized the output of theatrical content to a significant extent. Nothing is certain right now.”

Trepidation around the merger from groups such as NATO comes on the heels of the consolidation of Disney and 20th Century Fox back in 2019. Before the two studios merged, each was releasing around a dozen titles every year, according to data from The Numbers. Since 2021, the combined studio has only released about a dozen films per year.

And, so far in 2024, the two studios have only debuted three titles.

“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.”

The theatrical industry as a whole has struggled with a slower influx of titles. Pandemic shutdowns crippled production and were followed by a dual Hollywood strike that also disrupted the pipeline of new films. While box office analysts expect the number of films to increase in 2025 and 2026, there remains uncertainty around whether production will ever return to pre-pandemic levels.

“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.”

One immediate bright spot is that the merger between Paramount and Skydance will bring together Skydance Animation and Nickelodeon. Former NBCUniversal CEO Jeff Shell, who is slated to become the next president of Paramount when the deal closes, told investors Monday, “we’re going to immediately be a leader in animation.”

“From a theatrical perspective, animation is so important and Paramount is very strong with Nickelodeon,” he said during the investor call.

Animated features have seen strong box office sales this summer. Disney and Pixar’s “Inside Out 2” has collected $1.2 billion at the global box office over the past month, the fifth-highest haul for an animated feature ever. Its $533.8 million domestic tally is the third-highest for an animated film.

Universal and Illumination’s “Despicable Me 4” snared $122 million during its five-day domestic debut over the Fourth of July holiday weekend.

“A Paramount that recognizes the unique place of theatres in communities across this nation and around the world will be a catalyst for more movie options being available for movie fans today and for generations of new fans in the years ahead,” NATO’s O’Leary said. “We look forward to hearing more about this proposal and working with all interested parties in achieving the critical goal of more movies on the big screen.”

Disclosure: Comcast is the parent company of NBCUniversal and CNBC.

This post appeared first on NBC NEWS
0 comment
0
FacebookTwitterPinterestEmail

previous post
Bitcoin price swings above $59,000 level this Wednesday
next post
Shein’s global ambitions leaves some cybersecurity experts fearful of Chinese spy threats

related articles

U.S. foreign tax bill sends jitters across Wall...

May 30, 2025

Amazon taps Xbox co-founder to lead new team...

May 30, 2025

Nvidia results spark global chip rally

May 30, 2025

Boeing to resume airplane deliveries to China next...

May 29, 2025

E.l.f. Beauty to acquire Hailey Bieber skin care...

May 29, 2025

Dick’s Sporting Goods stands by full-year guidance —...

May 28, 2025

Macy’s CEO says retailer will hike some prices...

May 28, 2025

23andMe to delist from Nasdaq, deregister with SEC

May 28, 2025

Walmart fined for shipping realistic toy guns to...

May 28, 2025

Why Trump’s iPhone tariff threat might not be...

May 25, 2025
Enter Your Information Below To Receive Free Trading Ideas, Latest News, And Articles.


Your information is secure and your privacy is protected. By opting in you agree to receive emails from us. Remember that you can opt-out any time, we hate spam too!

Latest News

  • EURUSD and GBPUSD: EURUSD in a strong bullish trend

    August 14, 2024
  • Trump announces Dan Bongino will be deputy director of the FBI

    February 24, 2025
  • Trump’s ‘denuclearization’ suggestion with Russia and China: How would it work?

    February 3, 2025
  • Russia remains ‘active threat’ in influencing 2024 election, likely to focus on swing states: U.S. officials

    November 5, 2024
  • Solana and Cardano: New lows and targets for Thursday

    October 10, 2024

Popular Posts

  • 1

    Secret Service admits leaning on ‘state and local partners’ after claim it ignored Trump team’s past requests

    July 21, 2024
  • 2

    Elon and Vivek should tackle US funding for this boondoogle organization and score a multimillion dollar win

    December 4, 2024
  • 3

    Forex Profit Calculator: Maximize Your Trading Potential

    July 10, 2024
  • 4

    Five more House Democrats call on Biden to drop out, third US senator

    July 19, 2024
  • 5

    Biden calls to ‘lower the temperature’ then bashes Trump in NAACP speech

    July 17, 2024

Categories

  • Economy (829)
  • Editor's Pick (4,735)
  • Investing (624)
  • Stock (775)

Latest Posts

  • Bitcoin Slips to $83.6K Amid Nvidia’s $5.5B Charge

    April 21, 2025
  • Equifax’s solid Q2 leads to price target hikes by Goldman Sachs, Baird, and Needham: Should you buy?

    July 19, 2024
  • BP shares decline following weak Q1 gas trading forecast and rising debt

    April 11, 2025

Recent Posts

  • Abortion research group opposes state reporting requirements amid ‘weaponization’ by lawmakers

    March 14, 2025
  • Dow Jones drops, S&P flat on Fed uncertainty; Maplebear Rallies, Exxon and Shell slump

    January 9, 2025
  • Trump blasts Harris at Michigan rally for ‘partying’ while a ‘war’ is ‘going on’: ‘Nobody’s in charge’

    October 26, 2024

Editor’s Pick

  • Air Direct Capture – Reducing CO2 from the Atmosphere

    March 20, 2025
  • How To Invest In Stocks in UK: Guide For Beginner Traders

    July 25, 2024
  • Gold and silver are making moves towards support levels

    August 28, 2024
  • About us
  • Contacts
  • Privacy Policy
  • Terms & Conditions

Disclaimer: moneyrisetoday.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

Copyright © 2025 moneyrisetoday.com | All Rights Reserved

Money Rise Today – Investing and Stock News
  • Economy
  • Editor’s Pick
Money Rise Today – Investing and Stock News
  • Investing
  • Stock