The National Association of Theatre Owners, representing major movie exhibitors, is combing over the deal points for the proposed Paramount Global and Skydance Media merger for signs the Top Gun studio will continue its commitment to theatrical movies amid stiff streaming competition.
“Our guiding principle in this analysis will be whether this transaction will result in more movies being made for the global theatre-going audience or less. We are encouraged by the commitment that David Ellison and the Skydance Media team have shown to theatrical exhibition in the past,” NATO CEO Michael O’Leary said in a statement on Monday.
Skydance has had a long partnership with Paramount Pictures that led to box office success with theatrical titles like the Mission: Impossible franchise films and Top Gun: Maverick. But U.S. theater owners focused their remarks on a proposed Paramount and Skydance merger spearheaded by tech scion David Ellison as the new owners look to recalibrate the Paramount+ streaming service to get closer to profitability and to distinguish itself from rival platforms.
“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,” NATO warned.
On Monday morning during an investors call, Paramount and Skydance doubled down on streaming – especially around the key platforms Paramount+ and Pluto TV — as Skydance CEO David Ellison and former NBCUniversal CEO Jeff Shell, now set to be Paramount’s president after the transaction closes, outlined their post-merger strategy.
“I’m a big political believer in windowing strategy, and I think there’s maybe a more efficient way to maximize the value of our content while continue to be in the DTC business,” Shell told investors. That has NATO poring over the details of the proposed merger deal.
“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,” the theater owners, who depend on Hollywood studio suppliers for tentpole movies destined for the local multiplex, stated.