Finance
UK cinemas give wary approval to Paramount's victory in Warner Bros race
Published by Global Banking & Finance Review®
Posted on February 27, 2026
3 min readLast updated: February 27, 2026
Quick Summary
UK cinema groups said Paramount Skydance beating Netflix to Warner Bros Discovery is a cautious positive for theatrical release norms, but they fear consolidation could still cut film output and jobs. Executives point to Disney’s 2019 Fox deal as a precedent for fewer releases and urge tough antitru
UK cinemas wary as Paramount beats Netflix to buy Warner Bros
British cinemas react to Paramount Skydance deal
Industry concerns over jobs and theatrical releases
By Marie-Louise Gumuchian and Paul Sandle
LONDON, Feb 27 (Reuters) - British cinemas cautiously welcomed Paramount Skydance beating Netflix in the race to buy Warner Bros Discovery, but remained concerned that combining the Hollywood studios could cost jobs and reduce the number of movies released in theatres.
Netflix walked away on Thursday after refusing to raise its bid. The streaming giant has long been viewed as a threat to cinemas because it shuns traditional releases in favour of keeping content on its platform, usually putting titles in theatres only briefly to qualify for Oscars and other awards.
UK Cinema Association perspective
Phil Clapp, chief executive of the UK Cinema Association, said Netflix's withdrawal simplified matters but did not ease concerns around the loss of a major U.S. studio and the implications for the theatrical slate.
"We take the public statements from Paramount Skydance about its plans for any merged company in good faith - as we did those from Netflix," he said.
"But we saw with the Disney acquisition of Fox in 2019 similar public undertakings and now find ourselves in a position where the combined company releases around 40% fewer films than was the case when they were separate."
Paramount CEO David Ellison said in an open letter to UK creatives earlier this month that the combined company would have a slate of more than 30 movies per year, each with a full theatrical release.
Market uncertainty and regulatory scrutiny
Vue CEO view on deal impact
UNCERTAINTY LIFTED
Tim Richards, founder and CEO of cinema chain Vue, said Paramount's victory lifted some uncertainty, though either deal raised concerns about job losses.
Had Netflix prevailed, he said, cinemas feared it would cut Warner Bros' output or "collapse the window" for theatrical release.
Antitrust review and potential upside
Clapp said the deal still needed rigorous scrutiny by antitrust authorities, including Britain's Competition and Markets Authority, to ensure legally binding commitments on distribution, marketing and theatrical exclusivity.
Richards said one upside was that Netflix, after studying Warner Bros' theatrical model, might "now embrace it and release some of their amazing movies on our screens".
"What we would love to see are movies like Greta Gerwig's incredible new 'Chronicles of Narnia' coming out this Thanksgiving, to actually see that on a big screen," he said.
(Reporting by Marie-Louise Gumuchian and Paul Sandle. Editing by Mark Potter)
Key Takeaways
- •Netflix exiting reduces the immediate risk that Warner titles would be kept mainly on streaming, but the Paramount-WBD tie-up still concentrates studio power and could shrink the theatrical slate. (theguardian.com)
- •Exhibitors cite post-merger contraction as a real precedent: after Disney absorbed Fox, the former 20th Century label has released far fewer films annually than Fox did pre-deal—fueling UK concerns about fewer wide releases. (yahoo.com)
- •Paramount Skydance’s David Ellison has publicly pledged at least 30 films a year across the two studios and ‘full’ theatrical releases with a minimum 45-day global window (aiming longer for hits), commitments cinemas want regulators to make enforceable. (yahoo.com)
References
Frequently Asked Questions about UK cinemas give wary approval to Paramount's victory in Warner Bros race
1Why did UK cinemas react cautiously to Paramount Skydance winning the race?
They welcomed Netflix dropping out but remained worried that combining studios could cost jobs and reduce the number of films released in theatres.
2Why was Netflix seen as a bigger threat to cinemas in this deal?
Netflix typically avoids traditional theatrical releases, often putting films in theatres only briefly to qualify for awards, which raised fears it would cut output or shorten exclusivity windows.
3What comparison did the UK Cinema Association make to past studio mergers?
It cited Disney’s 2019 acquisition of Fox, saying the combined company now releases about 40% fewer films than when the studios were separate.
4What theatrical commitment did Paramount CEO David Ellison cite?
He said the combined company would have a slate of more than 30 movies per year, each with a full theatrical release.
5What scrutiny do cinema leaders want regulators to apply to the deal?
They want rigorous antitrust review, including by Britain’s Competition and Markets Authority, and legally binding commitments on distribution, marketing and theatrical exclusivity.
