Cinema Union Criticizes EU Approval of Paramount-Warner Bros. Merger

The International Union of Cinemas (UNIC) has criticized the European Commission's (EC) approval of the merger between Paramount Global and Warner Bros. Discovery, asserting that the decision was made with an "unacceptably narrow scope." UNIC, which represents cinema trade bodies and operators across 39 European territories, expressed concern that the EC's assessment did not adequately consider the broader implications for the European cinema market.

UNIC's primary objection centers on the EC's requirement for Paramount to divest its stake in the SkyShowtime streaming service as a condition for merger approval. The union argues that this specific divestment does not address the fundamental competitive concerns arising from the consolidation of two major film studios. Instead, UNIC believes the EC should have focused on the potential impact of the merger on film distribution, exhibition, and the overall diversity of content available to European audiences.

The union stated that the EC's decision appears to overlook the significant market power that a combined Paramount-Warner Bros. entity would wield. This consolidation could lead to reduced competition in film production and distribution, potentially limiting the number of films available to cinemas and influencing terms with exhibitors. UNIC emphasized that a more comprehensive review would have examined how the merger affects the theatrical window, the availability of independent films, and the economic viability of European cinemas in the long term.

While acknowledging the EC's requirement for Paramount to cancel film distribution agreements with SkyShowtime, UNIC believes this measure is insufficient. The union is calling for a more robust regulatory approach that prioritizes the health and diversity of the European cinema ecosystem. UNIC's stance highlights ongoing tensions between major media conglomerates and the exhibition sector regarding market consolidation and its downstream effects on cultural industries.