Paramount Skydance is seeking to turn its pledge to release at least 30 films a year into binding agreements with major US cinema chains, as it continues efforts to secure approval for its proposed acquisition of Warner Bros. Discovery.
According to Deadline, Paramount has offered three-year agreements to AMC Entertainment and Cineworld’s Regal Cinemas that would commit the combined Paramount-Warner Bros. operation to releasing 30 films annually in cinemas.
Under the proposed agreements, films would remain exclusive to theatres for at least 45 days and would not be made available on streaming platforms for at least 90 days. The contracts are also expected to include financial penalties if Paramount fails to meet the agreed release targets.
The move would give legal weight to commitments Paramount CEO David Ellison has repeatedly made to the exhibition industry since announcing plans to acquire Warner Bros. Discovery. Ellison has positioned theatrical distribution as a central part of the combined company’s strategy, arguing that the merger would create a stronger pipeline of major releases for cinemas rather than accelerating a shift towards streaming.
Ellison first publicly outlined the 30-film target at CinemaCon in April, telling exhibitors that the combined company would release 30 films annually and maintain a minimum 45-day exclusive theatrical window.
The proposed slate is expected to be divided broadly between the two studios, with around 15 releases from Paramount and 15 from Warner Bros. Ellison has argued that the target is achievable because the two studios are already operating at roughly those levels collectively.
Speaking during Paramount’s first-quarter earnings call, he said the companies were effectively already producing around 30 films between them, describing the Warner Bros. acquisition as an accelerator for Paramount’s broader strategy.
The original merger announcement also included a commitment to produce a minimum of 30 theatrical films each year. Paramount said the expanded output would increase the availability of high-quality content for cinemas while also supplying the combined company’s streaming platforms and third-party distribution partners.
For the exhibition industry, the proposed agreements could provide greater certainty over the future supply of studio films. A predictable 30-film annual slate would give cinema operators a stronger pipeline of releases, while the 45-day theatrical window would provide greater protection against movies moving quickly to streaming.
The commitments could also help Paramount address concerns surrounding the proposed US$110 billion acquisition, which has attracted opposition from cinema owners, filmmakers, labour groups and US state attorneys general.
Cinema United, the leading US theatrical exhibition trade association, has previously opposed the transaction, arguing that consolidation among major studios could reduce competition and ultimately result in fewer films being produced and distributed theatrically.
Paramount’s latest proposals appear aimed, at least in part, at addressing those concerns by providing exhibitors with contractual assurances on both film volume and theatrical exclusivity.
The company has increasingly emphasised its commitment to the cinema business. At CinemaCon, Ellison highlighted the importance of moviegoing and pledged to maintain a 45-day theatrical window for Paramount releases, while pointing to major franchises and upcoming productions as evidence of the potential strength of a larger theatrical operation.
However, the 30-film target is not without challenges. Paramount and Warner Bros. have released fewer than 30 theatrical films combined in several previous years, meaning that consistently reaching the proposed level would require a significant increase in production.
An economic analysis published in July estimated that producing 30 theatrical films annually could require an additional US$1.5 billion in annual investment and generate more than US$12 billion in total economic activity, while supporting tens of thousands of jobs directly and indirectly.
The proposed exhibition agreements come as the Warner Bros. Discovery transaction continues through a complex regulatory and legal process.
The US Department of Justice closed its antitrust investigation into the deal in June, concluding that the transaction was unlikely to harm competition across streaming, linear television or theatrical film distribution. Its review specifically found insufficient evidence that the merger would reduce theatrical film output.
The deal nevertheless faces a legal challenge from a coalition of 12 US state attorneys general, which has filed a lawsuit seeking to block the acquisition.
The states argue that combining Paramount and Warner Bros. would remove competition between two of Hollywood’s five major film distributors and could result in higher prices, fewer movies and reduced choice for both audiences and exhibitors.
A federal judge temporarily halted the transaction in July. Paramount and Warner Bros. subsequently agreed not to complete the deal until 1 June 2027, or until the court reaches a decision on the states’ claims, whichever comes first.
A federal trial on the antitrust challenge is scheduled for March 2027.
Against this backdrop, the proposed theatre agreements represent more than a distribution commitment. They could become an important part of Paramount’s case that the proposed merger would strengthen, rather than weaken, the theatrical film ecosystem by increasing the volume and predictability of major studio releases.
