UW-Whitewater FERC study finds theater commitment in Warner Bros. Discovery and Paramount Skydance merger could generate nearly $20 billion in annual economic stimulus

Analysis connects 30 annual theatrical releases and a 45-day theater window to jobs, local cinemas and Wisconsin’s economy

A proposed entertainment industry merger may look like a Hollywood story, but a new economic impact analysis from the University of Wisconsin-Whitewater’s Fiscal and Economic Research Center (FERC) shows the ripple effect could reach communities across the United States, including Wisconsin.

“The Economic Impact of the Warner Bros. and Paramount Skydance Theater Commitment” study analyzes the potential economic impact of a commitment by a combined Warner Bros. Discovery and Paramount Skydance entity to release 30 movies in theaters each year, 15 from each studio, with a 45-day theatrical window before those films become available through streaming.

FERC’s analysis estimates that annual production of the 30-film slate could generate nearly $12.3 billion in total economic activity, including about $2.7 billion in direct studio spending and roughly $9.5 billion in indirect and induced effects across the broader U.S. economy. The report estimates that production activity would directly support more than 7,000 jobs and an additional 39,000 jobs through indirect and induced supply lines, while generating an estimated $1.9 billion in federal, state and local tax revenue.

The analysis also finds that the 45-day theatrical window could boost local cinema revenue while supporting upstream and downstream industries. According to the report, the theatrical release commitment could generate more than $7.3 billion in additional economic activity, including more than $2.6 billion in ticket sales and $4.75 billion in related spending across restaurants, suppliers, travel and other industries.

“On the surface, this may look like a Hollywood story, but it is a story about America,” said Russell Kashian, Ph.D., professor of economics and co-founder/director of FERC. “Making a movie is not only about production costs in Los Angeles. It is about jobs across the country, at theaters, restaurants, suppliers, and in the communities where people go out to experience films together. A 45-day theater window creates predictability for cinemas such as Marcus Theatres, AMC and independent operators, which allows them to sustain long-term employment.”

In total, the report estimates an annual stimulus of nearly $20 billion through the support of more than 90,000 jobs across the U.S. In Wisconsin, FERC estimates the effects tied to longer distribution for the 30-film slate would amount to more than 800 jobs and $136 million in GDP spending spread across the state.

The report was authored by Ike Brannon, Ph.D.; Erik Bergren; and Kashian. Using IMPLAN, an economic modeling software package that measures how changes in one sector affect other parts of the economy, the analysis evaluates the direct, indirect, and induced effects of increased theatrical production and distribution.

For UW-Whitewater’s College of Business and Economics, the study is not only an economic analysis. It is also an example of applied learning in action. Through FERC, students conduct real economic research for businesses, nonprofits, government agencies, and community partners while being guided by faculty experts like Kashian. Students help gather data, build models, interpret findings, and translate complex economic activity into information decision-makers can use.

“This is the type of work public business education should deliver,” Kashian said. “Our students are not just learning economic theory. They are applying it to real questions that matter to people, jobs and communities. Whether the subject is a county fair, a trail, a housing market or a major media merger, FERC gives students the opportunity to do meaningful research under expert guidance and see how their work can inform decisions beyond the classroom.”

The Fiscal and Economic Research Center is one of the knowledge centers housed in UW-Whitewater’s College of Business and Economics. The center provides economic impact analysis, housing, environmental and agricultural assessments, and product viability and entrepreneurship research. Under the mentorship of faculty experts, students work on practical, real-world cases that strengthen their economic toolset while providing research support for businesses, nonprofit organizations and government entities.

For more information about the College of Business and Economics or FERC, visit our homepageor email cobebus@uww.edu.