Gabelli (an investor) told Barron's magazine that he expects Paramount Pictures to soon merge with Sony Pictures, Universal Pictures or another studio as a way to cut costs.
Today there are seven or eight motion-picture studios. A round of consolidation will occur in the next six to 12 months because of the costs of financing, prints and advertising, the benefits of globalization and such," said Gabelli. "We hear talk of something going on."
Moreover, with vertical integration and corporate ownership of major studios (Universal Studios owned by GE, Warner Bros Pictures owned by Time Warner, etc.) — and the current economic downturn — corporate owned studios are being left with dwindling advertising budgets.
Honestly that´s not good news for us film consumers. I am afraid that once the big film studios merge the quality of their films will suffer considerably. There are a lot of good as well as trash films currently shown in movie theaters but I do think that the fewer film studios the less their overall creativity. We will see ;)
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I believe if it's happen, the quality for the film will increase since they will have more capital to invest.
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