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Movie Theaters Dread Decreased Profits, Justice Department Regulation May Force Unpopular Movies Into Cinemas — 6 Points

1. United States movie theater chains are worried about their profits. The Justice Department is currently reviewing “little-known mid-century rules [that] may result in studios getting free rein to force them to show unpopular movies in exchange for getting blockbuster releases.”

2. This rule, called “block booking,” amongst other rules, prohibits studios from selling multiple films to movie theaters as a package.

3. The Justice Department, though, announced that it will review around 1,300 regulations and aims to cancel rules like block booking.

4. According to Brian Fridley, a movie theatre owner, “his chain of 20 movie theaters and 86 screens might be forced to show poor performers like 21st Century Fox’s ‘The Darkest Minds.’” That movie made $13 million in the United States. The Black Panther, on the other hand, made $700 million.

5. The current rules and regulations — Paramount consent decrees, as the industry calls them — have been in place since the 1940’s.

6. The National Association of Theatre Owners, amongst other individuals and organizations, are responding to the Justice Department, urging them to keep the current rules the same.

Source: https://www.reuters.com/article/us-usa-film-antitrust/u-s-movie-theater-chains-fear-justice-department-review-may-hit-profits-idUSKCN1NH17R

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