Movie Exhibitors Adamantly Opposed to Netflix/Warners Buyout

 Viewed as their worst enemy, movie exhibitors are strongly opposed to Netflix's purchase of Warner Bros.

Many theatre operators are petitioning the Trump Administration to deny Netflix's bid to usurp Warner Bros., as they depend on the 12-14 films Warner Bros. releases annually, and they see this evaporating.

 Movie operators have valid issues regarding their opposition as the chart below illustrates.

"Hopefully the deal gets killed so Warners can be sold to a better entity," says Chris Randleman, CEO at Flix Brewhouse, a Texas upscale theatre chain. In their defense, Netflix execs stress they plan on releasing films theatrically, and there will be no change to the release window between exhibition and streaming. 

Before COVID, most films had an exclusive theatrical window of 90 days. Now, some films are available to buy or rent within a few weeks of distribution. Exhibitors fear Netflix will shorten the theatrical release window even further.

"Shorter windows would result in lower revenues for cinemas," states Eduardo Acuna, CEO of Regal Entertainment. "These lower revenues will result in cinema closings, which limit the consumer's ability to view movies the way filmmakers intended - on a big screen with great surround sound." 

By: Jim Lavorato

Entertainment Industry Gets Cheesy

 

Parmigiano Reggiano, the king of cheeses, seeks product placement

In a deal between the Italian Parmigiano Reggiano Consortium and the United Talent Agency, a firm specializing in cultural marketing, UTA will endeavor to get the king of cheeses prominently displayed in movies, TV shows, and streaming media globally. 

According to a UTA spokesperson, "We will leverage our expertise and global connections across entertainment and culture to introduce Parmigiano to a wide pool of partners, to further its message that the king of cheeses offers gastronomical excellence and high-quality ingredients, production, and distribution."

Parmigiano, as it is familiarly called, has been produced in Italy for over a thousand years. It has a Protected Designation of Origin rating, meaning it can only be produced in one of five Italian provinces, and only under strict rules regarding ingredients and manufacture. 

Product placement can be important for the right product, and Parmigiano is positioned to find placement in a wide range of potential projects.

"This cheese is not just a symbol of excellence but a global brand", says Carmine Forbuso, head of marketing for the Consortium. "This partnership with UTA will allow us to connect with new audiences in an authentic and relevant way."

By: Jim Lavorato

Saudis Invest $900 million in Hollywood AI Developer

 The Crown Prince and Prime Minister of Saudi Arabia announced that the Saudi government will invest $900 million in Luma AI, a San Francisco-based firm that builds AI models for the entertainment industry.

Prince Mohammed bin Salman & Trump at a recent visit to the White House

Humain, a Saudi investment vehicle, will be the lead contributor to the Luma AI investment. As part of the deal, Luma will open an office in Riyadh and have full access to Saudi-based data centers, which generate 2 gigawatts of computing power, equivalent to the Hoover Dam's maximum output. 

Amit Jain, Luma AI's CEO, stated that "Luma will build AI world models that have many use cases for Hollywood, including the creation of new work, and make our systems available to Hollywood studios." Luma recently opened a training center in Los Angeles that offers AI education to film directors and executives. Saudi Prince Salman indicated that Saudi Arabia wants to become an AI powerhouse, using its access to cheap energy, and become an exporter of computing power. 

On his recent visit to the White House, the Prince met not only with the President but also major tech company executives from Nvidia, Oracle, Amazon, Microsoft, and Elon Musk's Grok AI.

According to Amit Jain, "Luma AI is an exceptional U.S.-based global startup pushing the boundaries of AI systems, which will provide foundational breakthroughs into real products."

By: Jim Lavorato

Netflix to Acquire Warner Bros. Discovery

 It is now apparent that Netflix, assuming it obtains regulatory approval, will purchase Warner Bros. for $82.7 billion. 

President Trump and Ted Sarandos of Netflix

This would indicate that the world's largest entertainment streamer (YouTube is the largest media streamer) would now own one of Hollywood's oldest studios.

Ted Sarandos, Netflix Co-CEO, recently met with President Trump for a two-hour lunch, presumably regarding the Warner's purchase. "We're highly confident in the regulatory process", says Sarandos. "This deal is pro-consumer, pro-innovation, pro-worker, pro-creator, and pro-growth. Our plans are to work closely with all the appropriate governments and regulators, but we are really confident that we're going to get all the necessary approvals." 

On the flip side, Hollywood's most powerful media producers are strongly against the Netflix purchase. Unions and guilds representing directors, writers, producers, casting directors, and actors expressed deep concern. A spokesperson for the Writers Guild stated, "This merger must be blocked. It's the world's largest entertainment streamer purchasing a major competitor - isn't this what antitrust laws were designed to prevent?" 

I think the odds favor a purchase, but Netflix may not be the acquirer. The Trump Administration may not want to appear to be anti-Hollywood, or worse, anti-worker, so Netflix's road to success will be rocky 

To make matters more interesting, Paramount launched a hostile bid of $108.4 billion for Warner. Owned by Skydance, which recently acquired Paramount, they have put forth a much higher bid vs. Netflix. Their bid includes funding from Saudi Arabia and Qatar, with loans secured by Bank of America and Citibank. 

Hollywood would much prefer the Paramount purchase, but there is strong support for the Netflix deal by Congressional Democrats, who issued a statement saying, "the Paramount transaction has national security issues because of the reliance on funding from foreign-based financiers." That's a dumb argument. 

I believe the Paramount deal is more favorable to Hollywood, as there would be little conflict with theatrical movie releases and early content streaming.  

According to Polymarket (the world's largest prediction market), Netflix only has a 17% chance of closing the Warner's acquisition. I agree. 

By: Jim Lavorato

This Year's Hot Hollywood Gifts

 What are the glitterati finding under the Christmas tree in 2025? Here's the rundown.

- Channel's "IT" cat-eye sunglasses - $800

- Tiffany 'HardWare' diamond earrings. As worn by Sarah Paulson in "All's Fair" - $19,900

- 'Alice in Wonderland' clutch - $1,841

- Kayne's Sun Valley candle (also Vail and Aspen versions) - $65

- Channel's Palm Beach Pink tortoise top-handle bag - $5,300

- Custom Pet Portraits with turquoise, pink opals, and diamonds. As purchased by

Jennifer Aniston and Taylor Swift - starting at $10,000

- Louboutin's crystal pump, for 'Wicked' lovers - $1,495/pair

- Gucci, made-to-order walnut ping-pong table - $85,000

- Channel's 'Sydney Sweeny' hand-crafted leather boxing gloves - $129

- Fender x Loog's miniature electric Telecaster guitar - $229

- New York City brownstone, fully furnished dollhouse - $1,630

Merry Christmas!