

Cinema owners see a new hurdle to recovery: the Warner deal
Subscribe to enjoy similar stories. PORT CHESTER, N.Y.—“Avatar: Fire and Ash," a visual spectacle and the third installment in this blockbuster franchise, is the sort of movie made for the big screen. Its holiday arrival was eagerly anticipated by cinema owners still working to lure people back after the pandemic.
Yet opening night last week in this New York City suburb was hardly encouraging. The IMAX 3-D screening of Avatar at the 14-screen AMC movie theater was only about half full. And now, theater owners are contending with another concern on the horizon: a potential deal for Warner Bros.
Discovery. Netflix agreed this month to acquire Hollywood studio Warner Bros. for $72 billion, while Paramount is still competing for Warner with a hostile bid.
Either deal would result in fewer theater releases, analysts and theater owners say. And if Netflix prevails, it could mean shorter periods of exclusivity before movies are sent to streaming platforms, though both Paramount and Netflix have said they wouldn’t take this approach. “When legacy studios are absorbed there’s a significant decline in production," said Michael O’Leary, chief executive of the theatrical exhibition trade group Cinema United.
Movie attendance has already plummeted in recent years under competition from streaming platforms and a slowing pipeline of blockbusters. Many theaters closed for good during the pandemic. Those that survived often had to pump millions of dollars into upgrading their facilities.
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