Paramount Global, the parent company of Paramount Pictures, is in talks for a potential merger with Skydance Media, a move that has caught the attention of the National Association of Theatre Owners (NATO). The theater owners are closely examining the deal to ensure that the commitment to theatrical movies remains strong amidst the rise of streaming platforms.
The partnership between Skydance and Paramount has resulted in successful box office hits like the Mission: Impossible franchise and Top Gun: Maverick. However, with the proposed merger, there are concerns about the future of theatrical releases as the new owners aim to boost the profitability of Paramount+ and differentiate it from other streaming services.
NATO CEO Michael O’Leary emphasized the importance of the merger leading to more movies being produced for theater audiences, rather than fewer. The organization warned that a decrease in movie production could have negative consequences for consumers and industry professionals alike.
During an investors call, Paramount and Skydance executives highlighted their focus on streaming platforms like Paramount+ and Pluto TV. Former NBCUniversal CEO Jeff Shell, set to become Paramount’s president post-merger, discussed strategies to maximize content value while maintaining a direct-to-consumer business model.
As the details of the merger continue to unfold, NATO is eager to collaborate with all parties involved to ensure that the merger results in more movies being released in theaters. The theater owners rely on Hollywood studios for blockbuster films that draw audiences to the big screen, making the outcome of the Paramount and Skydance merger crucial for the future of theatrical exhibition.