“Cinema may have reached its zenith,” proclaimed Kenneth Jønsson, a sales manager at United International Pictures, upon the release of The Odyssey in Norway. “Believe me, this is a monumental film, a significant reminder of our fortune to collaborate with such films and filmmakers,” he added.
Jønsson shared his enthusiastic views on Christopher Nolan’s latest epic via LinkedIn, right before the film’s debut. However, a few weeks later, the future of United International Pictures (UIP) is under scrutiny, raising questions about its ability to continue supporting the filmmakers that Jønsson praises.
This uncertainty stems from Paramount’s decision to withdraw from UIP, a partnership equally held with Universal Pictures, as part of the regulatory approvals for its acquisition of Warner Bros. Discovery in the European Union. According to conditions set by the European Commission, the EU’s antitrust body, Paramount must sever its ties with UIP within 13 months following the completion of the Warner merger, ending its 44-year involvement in the European cinema scene.
Paramount has not provided comments on the specifics of how it will withdraw from UIP or if the venture will persist without its involvement. Similarly, Universal Pictures has not commented on the European Commission’s decision, and UIP has not responded to inquiries for comments.
What is clear is that Paramount will end its 50% stake in UIP, necessitating new distribution strategies in the 100 regions where UIP operates. Paramount might leverage Warner Bros. Pictures’ networks in some areas or use Warner’s existing partnerships, provided these partners do not distribute films for Universal or Disney.
For instance, if Paramount wished to transition its UIP films to SF Studios in the Nordics, where Warner had a distribution agreement, it would have to confirm that SF Studios did not have similar arrangements with Universal and Disney. This verification would be crucial to comply with the European Commission’s stipulations.
Regardless of the strategy, UIP will face a reduced portfolio of films, creating potential instability for its 200 employees, although it may distribute some titles from other studios like Lionsgate’s Michael.
UIP, based in Chiswick, a quaint suburb of West London, operates without a CEO. Rhiannon Harries, a former executive at STX Entertainment, currently serves as the chief operating officer and represents one of the leading figures at UIP. Lawyers from Paramount and Universal oversee UIP’s operations in the UK.
In its latest financial documents filed with the UK’s Companies House, UIP reported sales of nearly £198M ($263M) in 2024 and a pre-tax profit of £12.2M. Although UIP once boasted box office revenues of $2.5 billion, its influence waned significantly in 2007 when Paramount and Universal began managing distribution directly in major markets such as France, Brazil, and Italy.
Stewart Till, a British executive who led UIP until 2006, commented that Paramount’s departure marks the end of an era for a company that bridged Hollywood with local markets. He noted that this change is significant for Paramount as it necessitates new logistical arrangements in UIP’s territories, a move it has not undertaken since 2007.
However, within the broader context of the $111B merger with Warner Bros., divesting from UIP appears a minor concession for Paramount.
An industry insider remarked, “Honestly, I don’t anticipate it will make much difference. The industry will just see a reshuffling of players, leading to even less competition. Perhaps further regulatory measures are necessary to prevent any single distribution company from dominating the market, and to foster more competition and innovation.”
Laura Houlgatte, CEO of the International Union of Cinemas (UNIC), which represents cinema operators across 39 European countries, expressed concerns to Deadline. She noted that while the divestiture addresses a significant structural issue, it fails to mitigate risks associated with theatrical distribution outside UIP territories and does not address broader concerns highlighted by UNIC during the review process.
During the European Commission’s investigation, Houlgatte advocated for measures to protect theatrical exclusivity and release windows, as well as strategies to maintain a robust and diverse range of films for cinemas and their audiences.
Paramount CEO David Ellison has sought to alleviate these concerns by pledging to release over 30 cinema films annually and maintain a minimum theatrical window of 45 days. He continues to defend this position as the merger faces delays due to a lawsuit from 12 U.S. state attorneys general, who argue that the deal limits competition in theatrical film distribution.
The Balanced Economy Project, a UK-based non-partisan organization opposing monopolies, criticized the European Commission’s remedy involving UIP, stating it does little to address the increased bargaining power that a merged Paramount-Warner entity would wield.
The organization pointed out, “Cinemas will still face one less independent major studio. Broadcasters and platforms will still contend with a larger owner of premium rights. Producers and content providers will encounter fewer significant market avenues.”
The dissolution of the partnership between Paramount and Universal marks the end of a chapter in European cinema history, but whether it is sufficient to protect the industry from becoming overly consolidated remains to be seen.
Andreas Wiseman contributed to this story
Daniel Hayes is a business journalist with a focus on market trends, startups, and corporate strategies.
His sharp analysis and investigative reports make complex financial topics accessible to all readers.
