Cinema United has urged Congress to scrutinize the potential sale of Warner Bros., warning that a deal with Netflix or Paramount could devastate the movie theater industry. The trade group argues the acquisition would lead to fewer films, theater closures, and widespread job losses. In a letter to lawmakers, they highlighted Netflix's hostility toward theatrical releases and the broader economic fallout.
On January 7, 2026, Cinema United, the trade group representing movie theater owners, sent a letter to the House Judiciary Subcommittee on the Administrative State, Regulatory Reform and Antitrust, expressing grave concerns over the proposed sale of Warner Bros.
The group focused primarily on Netflix's $82.7 billion deal to acquire Warner Bros. and HBO Max, announced recently amid competition from Paramount. Netflix co-CEO Ted Sarandos pledged to honor the studio's existing theatrical commitments but indicated that exclusive theater windows— the time films play only in cinemas—would "evolve" to be more "consumer friendly." Cinema United countered that Netflix views theatrical distribution as "outmoded" and aims to produce movies exclusively for its streaming platform.
Since 2023, Netflix films have had an average theatrical window of 11 to 17 days, compared to 46 days for major studio releases in 2024 and 58 days in 2023. "We are deeply concerned that this acquisition of Warner Bros. by Netflix will have a direct and irreversible negative impact on movie theaters around the world," the letter states. It warns of further consolidation in a market already dominated by streaming, affecting theater owners, movie fans, and local businesses.
Even if Paramount secures the deal, Cinema United sees risks, noting the merger would control up to 40% of annual domestic box office revenue. The group cited past consolidations, such as Amazon's purchase of MGM and Disney's acquisition of Fox, which reduced film output—Disney produced about half as many movies post-merger.
Theaters, described as "cultural and economic anchors" and a "Main Street industry," face existential threats. "Theaters will close, communities will suffer, jobs will be lost," the letter concludes, emphasizing the broader implications if fewer movies reach cinemas.
