The European cinema industry is grappling with the implications of the recently approved Paramount-Warner Bros. merger. The International Union of Cinemas (UNIC) representing the European theater trade across 39 territories, has voiced its concerns about the European Commission’s (EC) decision, arguing that it fails to address the broader implications of this massive media consolidation.
While UNIC acknowledges some positive aspects of the EC’s conditions, such as the requirement for Paramount to terminate its film distribution partnership with Universal in Europe within the next 13 months, the union believes the decision is too narrowly focused. Laura Houlgatte, CEO of UNIC, emphasized that the sector had raised numerous concerns that were not adequately reflected in the Commission’s findings.
Broader concerns and potential risks
Houlgatte highlighted several risks that the EC’s decision did not fully address. These include theatrical distribution arrangements outside the Universal International Pictures (UIP) territories, theatrical windowsfilm diversitypreservation of film outputproduction pipelinescontractual practices and access to back catalogues.
The ongoing legal challenges to the merger in the United States further underscore these concerns. Houlgatte noted that these broader issues remain unresolved and unanswered. UNIC has committed to monitoring developments in the U.S. and any potential consequences for Europe.
The role of the European Media Board
UNIC also expressed disappointment that the European Media Board an independent advisory body, did not examine the wider implications of the merger. These implications include the impact on media pluralismcultural diversity and the audiovisual market. The union argues that a more comprehensive analysis was necessary to fully understand the potential effects of the merger.
Conditions of approval and their limitations
The EC’s approval of the merger came with several conditions aimed at mitigating potential negative impacts. For instance, Paramount is forbidden from co-distributing films with Universal in the European Audiovisual Area (EAA) and from using its distributor to distribute Warner Bros. films in countries where it already distributes Universal or Disney films. However, UNIC maintains that these conditions do not go far enough to address the broader concerns of the cinema sector.
As the industry navigates this significant shift, the focus remains on ensuring that the merger does not compromise the diversity and vitality of European cinema. UNIC’s vigilance and advocacy highlight the importance of safeguarding the interests of the cinema sector in the face of such monumental changes.
