Movie Date Night at a Disney-Owned Movie Theater?

by Ray Keating

Analysis

DisneyBizJournal.com

November 20, 2019

What about heading to a movie theater owned by the Walt Disney Company, or for that matter, by Paramount or Sony? Well, it’s a possibility.

For people who are unaware, movie studios are barred from owning movie theaters due to a Supreme Court decision in 1948 that agreed with the government, and separated movie production and distribution. A subsequent series of decrees – known as the Paramount decrees – barred movie studios from owning movie theaters.

Such government intrusion into the entertainment marketplace made little sense at the time, and given myriad choices for consumers today, make no sense whatsoever in the 21^stCentury.

Apparently, according to a report from Variety, government thinking might finally be catching up to market realities. 

On November 18, Variety noted: “The Department of Justice will seek to end the Paramount consent decrees, the landmark agreements that have barred studios from owning theaters for the last 70 years.” In a November 18^th speech, Makan Delrahim, who heads up the DoJ’s antitrust division, “argued that the decrees are a relic of the past, as the old studio system has long since expired.” He was quoted: “We have determined that the decrees, as they are, no longer serve the public interest, because the horizontal conspiracy — the original violation animating the decrees — has been stopped. The Division finds the consent decrees no longer meet consumer interests.” 

Delrahim also noted, “We cannot pretend that the business of film distribution and exhibition remains the same as it was 80 years ago.” Well, there’s a crazy idea.

Much lies ahead in terms of making this happen, including lobbying from opponents and getting courts to end the decrees, but the process has started. Heading to the Disney Movie Theater might not be that far off.

Ray Keating is the editor, publisher and economist for DisneyBizJournal.com, and author of the Pastor Stephen Grant novels. He can be contacted at  raykeating@keatingreports.com.