Movie theaters are asking Congress to stop the sale of Warner Bros.

Leading cinema chains express strong opposition to the potential sale of Warner Bros. Discovery, citing concerns over increased market monopolization.

The U.S. movie theater sector has openly criticized the possible acquisition of the media giant Warner Bros. Discovery (WBD). Industry leaders are preparing to urge Congressional action to block the transaction if a major streaming service emerges as the buyer of this iconic Hollywood studio.

Congressional Appeal and Antitrust Concerns

The global cinema trade group Cinema United, which advocates on behalf of theaters worldwide, has formally submitted a statement to the U.S. House of Representatives Subcommittee on Antitrust, Commercial, and Administrative Law. This submission coincides with an upcoming hearing focused on the prospective Warner Bros. Discovery sale.

Within their statement, Cinema United voices significant apprehensions about the potential ramifications for film distribution, especially if the studio’s ownership shifts to Netflix.

Worries Surrounding a Netflix Acquisition

Cinema United highlights that if Warner Bros. is acquired by a streaming service like Netflix, the impact on theaters could be profound and irreversible.

“We are deeply concerned that Netflix’s takeover of Warner Bros. would directly and permanently harm movie theaters,” the association declares.

They warn such a move would create a dangerous consolidation of power in the entertainment industry, concentrating film production and distribution under a single dominant global platform.

Risks to Traditional Film Exhibition

The primary issue raised by theater owners involves Netflix’s streaming-focused business model, which traditionally deprioritizes wide theatrical releases. Cinema United argues that handing control of one of Hollywood’s largest studios to a company with this approach could seriously weaken the conventional cinema exhibition landscape.

The group further points out that the market is already experiencing significant monopolistic pressures, which this acquisition would only exacerbate.

Potential Buyers for Warner Bros. Discovery

At present, the frontrunners vying to purchase Warner Bros. Discovery are Netflix and Paramount Global. Insider reports indicate that intense negotiations are ongoing, with major sticking points including pricing and deal conditions.

The opposition from the cinema community combined with upcoming Congressional scrutiny could pose a formidable political and regulatory hurdle, potentially complicating or delaying the completion of the transaction regardless of the eventual buyer.