Scarinci Hollenbeck, LLC
The Firm
201-896-4100 info@sh-law.comFirm Insights
How Clearance Agreements are Killing Independent Movie Theaters
Author: Scarinci Hollenbeck, LLC
Date: November 27, 2015
Key Contacts
Back
Clearance agreements and independent movie theaters
Independent movie theaters may be losing opportunities at the hands of big theater chains, all because of deals known as clearance agreements.
The Department of Justice has begun an investigation into several theater chains in the U.S., and at the heart of the DOJ’s probe are clearance agreements. These are exclusive deals between theaters and distributors that have been around for some time, but may be squeezing small, independent theaters out of business. The concept of clearance agreements is at the center of an antitrust lawsuit against American Multi-Cinema, following claims from Viva Cinemas Theaters that AMC’s exclusivity deals put the Spanish-language theater out of business and is harming the Houston area’s Hispanic population, according to the Hollywood Reporter. However, the Houston theater’s case against AMC is just one example of a practice that could be hurting similar businesses nationwide.
The legality of these clearance agreements
Exclusivity deals themselves are not illegal, Entertainment Weekly explained. However, the way that big chains are using clearance agreements could be disrupting competitive balance and fairness in the marketplace. When a nationwide theater company asks for exclusivity or threatens not to show a film if a smaller competitor is allowed to exhibit it, it could be in breach of antitrust laws.
Smaller theaters have expressed the opinion that these exclusivity deals give national chains too much power, and limit consumer choice. A rise in theater construction has coincided with an increase in clearance requests, according to the Wall Street Journal. The increasing prevalence of these exclusivity deals has escalated attention given to these agreements and whether or not they violate existing antitrust laws.
If you own or work for a small theater that appears to be suffering due to exclusivity granted to larger chains in the area, consult an experienced entertainment attorney for more on the case against these companies and their clearances.
- Industries: Entertainment & Media
- Locations: Red Bank, NJ, New York City, Little Falls, NJ
No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.
Related Posts
See all
Corporate Consolidation and Antitrust Issues in Mergers
Corporate consolidation involves two or more businesses merging to become a single larger entity. The result is often a stronger and more competitive company that can better navigate today’s competitive marketplace. What Is Corporate Consolidation? Corporate consolidation closely resembles a basic merger transaction. The primary difference is that a consolidation creates an entirely new business […]
Author: Dan Brecher
What is Business Law and Why Is it Important?
Business law plays a critical role in nearly every aspect of running a successful enterprise, from negotiating a commercial lease to drafting employee policies to fulfilling corporate disclosure obligations. Understanding what is business law and your legal obligations can help your business run smoothly and build productive relationships with clients, business partners, regulators, and others. […]
Author: Dan Brecher
Corporate Transactions: Best Practices for Successful Deals
Corporate transactions can have significant implications for a corporation and its stakeholders. For deals to be successful, companies must act strategically to maximize value and minimize risk. It is also important to fully understand the legal and financial ramifications of corporate transactions, both in the near and long term. Understanding Corporate Transactions The term “corporate […]
Author: Dan Brecher
How to Conduct a Fair and Legal Employee Termination in 2025
Ongoing economic uncertainty is forcing many companies to make tough decisions, which includes lowering staff levels. The legal landscape on both the state and federal level also continues to evolve, especially with significant changes to the priorities of the Equal Employment Opportunity Commission (“EEOC”) under the Trump Administration. Terminating an employee is one of the […]
Author: Angela A. Turiano
Admin Dissolution for Annual Report: What You Need to Know
While filing annual reports may seem like a nuisance, failing to do so can have significant ramifications. These include fines, reputational harm, and interruption of your business operations. In basic terms, “admin dissolution for annual report” means that a company is dissolved by the government. This happens because it failed to submit its annual report […]
Author: Dan Brecher
What Is Antitrust Litigation Law?
Antitrust laws are designed to ensure that businesses compete fairly. There are three federal antitrust laws that businesses must navigate. These include the Sherman Act, the Federal Trade Commission Act, and the Clayton Act. States also have their own antitrust regimes. These may vary from federal regulations. Understanding antitrust litigation helps businesses navigate these complex […]
Author: Robert E. Levy
No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.
Sign up to get the latest from our attorneys!
Explore What Matters Most to You.
Consider subscribing to our Firm Insights mailing list by clicking the button below so you can keep up to date with the firm`s latest articles covering various legal topics.
Stay informed and inspired with the latest updates, insights, and events from Scarinci Hollenbeck. Our resource library provides valuable content across a range of categories to keep you connected and ahead of the curve.