The UK Cinema Association has issued a statement following the decision by Netflix to withdraw from the competition to acquire Warner Bros Discovery, seemingly leaving the way open for a deal with Paramount Skydance.
Responding to these latest developments, the Association said the following:
‘While we watched the developments overnight with interest, and the decision of Netflix seemingly to drop out of the competition to acquire Warner Bros Discovery simplifies matters a little, this does nothing to reduce our basic concerns, which are around the potential loss of a major US studio and its implications for the theatrical film 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.
But we saw with the Disney acquisition of Fox in 2019 similar public undertakings but now find ourselves in a position where the combined company releases around 40 per cent fewer films than was the case when they were separate.
We therefore remain determined to ensure that any deal is subject to rigorous scrutiny by the relevant competition authorities, in the UK this being the Competition and Markets Authority.
That is the only way to ensure that legally-binding undertakings are put in place around distribution, marketing and theatrical exclusivity.’