Cinema United leaders shift on Paramount-Warner Bros dispute, saying settlement talks are preferable

Movie theater owners represented by Cinema United have reversed course in the ongoing dispute tied to Paramount and Warner Bros and now say they favor settlement talks rather than continued litigation posture, according to The Hollywood Reporter. The change comes as leaders in the theater industry warn that prolonged uncertainty around the companies’ combination could spill into schedules for films and other consumer-facing decisions that rely on stable distribution commitments.

In an interview reported by The Hollywood Reporter, Cinema United CEO and board chair framed the dispute as a risk to box-office momentum, arguing that the longer the parties remain locked in conflict the more the market can lose clarity. Their stated concern was not only about legal outcomes, but also about operational planning by exhibitors, including how studios and distributors decide timing, marketing coordination, and the sequencing of releases.

Cinema United leaders said that the prospect of the merger-related dispute continuing could inject “disastrous uncertainty” into the marketplace, a characterization the publication attributes to the organization’s top executives. In their view, that uncertainty can translate into downstream costs for theaters and their employees, because moviegoing demand is sensitive to predictable releases and orderly industry coordination.

The shift toward settlement discussions indicates a change in how at least some exhibitors want the dispute resolved. The Hollywood Reporter described the leaders’ position as a move away from the earlier stance and toward talks that could allow businesses on both sides of the theater supply chain to plan without waiting for the dispute to run its full course.

The report places the discussion within the broader tension that sometimes follows major studio combinations, where theater operators have to balance consumer expectations with distribution terms and timing. For exhibitors, even limited delays or changes in release patterns can affect ticket sales and staffing needs across multiple weeks and months, especially when programming depends on multiple stakeholders aligning around dates.

Cinema United’s revised position also highlights how industry organizations attempt to manage public-facing business impacts while legal proceedings proceed in parallel. Theater owners, acting through trade groups, have a direct stake in the reliability of film release calendars, and the organization’s executives suggested that settlement talks could reduce the risk of prolonged business disruption.

The next steps depend on whether the parties involved in the Paramount-Warner Bros matter agree to pursue settlement discussions and what terms could be reached. Until then, the theater industry is weighing how best to protect operational planning for audiences and workers against a dispute that, as described by Cinema United leadership, could affect momentum at the box office.