Paramount Skydance has offered binding three-year contracts to AMC Entertainment and Regal Cinemas guaranteeing at least 30 theatrical releases annually if its merger with Warner Bros. Discovery closes.
Paramount Skydance Corp. Offers 30-Film Output Contracts to AMC and Regal
In an effort to shore up support for its high-stakes consolidation push, Paramount Skydance Corp. has agreed to sign contracts with major theater chains guaranteeing a steady stream of wide-screen releases. The proposed bilateral agreements offer concrete terms to the nation’s largest exhibitors, requiring the studio to release a minimum of 30 films per year over a three-year period following the close of its acquisition of Warner Bros. Discovery Inc.
Under the terms offered to AMC Entertainment Holdings Inc. and Cineworld Group’s Regal Cinemas, the guaranteed slates would come equipped with strict distribution boundaries. The agreements mandate an exclusive theatrical window of at least 45 days before pictures reach premium video-on-demand services, alongside a 90-day moratorium preventing the titles from landing on streaming platforms. Sources familiar with the discussions note that the proposals carry financial penalties if Paramount fails to meet its end of the bargain.
The strategy is designed to counter a prominent lawsuit filed by 12 state attorneys general led by California Attorney General Rob Bonta. The litigation argues that a combined studio—referred to by critics as WarnerMount—would control roughly 30 percent of movies that gross over $100 million at the box office and secure wide releases in at least 3,000 theaters. By locking in guaranteed output with major theater chains, Paramount hopes to convince regulators and the court that the merged entity will sustain theatrical exhibition rather than starve it.
“This year has been an important one for our industry. Attendance is up, younger audiences are coming out in numbers we haven’t seen in years, and the upcoming release schedule looks just as strong.”
Eduardo Acuna, Regal Cinemas CEO
Eduardo Acuna and Adam Aron Respond to David Ellison’s Terms
Regal chief Eduardo Acuna publicly endorsed the merger, arguing that Paramount CEO David Ellison has made genuine concessions. Acuna stated that Ellison is willing to execute a consent decree with state attorneys general to formalize the guarantees. Adam Aron, who has led AMC for a decade, expressed early support for Ellison’s vision at CinemaCon earlier in the year, though AMC leadership declined further comment on the specifics of the written contract talks.
Not all theater operators share the optimism of AMC and Regal. Independent chains and trade organization Cinema United remain firmly opposed to the consolidation, pointing to historical precedents like the Disney-Fox merger.
Cinema United top exec Michael O’Leary warned that further studio consolidation threatens local Main Street economies where neighborhood cinemas anchor community life. Independent executives also fear that a less competitive distribution market will give studios unchecked leverage to demand higher revenue splits and force theaters to scale back facility upgrades.
Beyond courtroom battles, industry analysts question whether a mandatory 30-film volume guarantees financial health. Paramount’s own recent output illustrates the tension between quantity and profitability.
Addressing output concerns in a recent op-ed, Ellison acknowledged that box office appeal cannot be artificially manufactured. In my career, ‘G.I. Joe: Retaliation’ met financial expectations, ‘Top Gun: Maverick’ exceeded them, and ‘Terminator: Dark Fate’ fell short. I am proud of all these films, but nobody can dictate what audiences will love,
Ellison wrote, adding, What I can promise is the work, and more of it.
Rob Bonta and California Officials Prepare for March 2027 Trial
While the United Kingdom’s antitrust division has approved the merger, the domestic legal challenge led by California Attorney General Rob Bonta stands as the final major barrier.
In the interim, the financial pressure on Paramount mounts. Whether the written 30-film pledge and 45-day window guarantees will soften state opposition or satisfy independent exhibitors before the courtroom showdown remains entirely uncertain.
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