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Antitrust Keyed to Areeda, 8th Ed.
Theatre Enterprises, Inc. v. Paramount Film Distributing Corp.
Citation:
346 U.S. 537 (1954)Facts
Theatre Enterprises owned and operated the Crest Theatre, a modern suburban theater located about six miles from downtown Baltimore. After opening in February 1949, the theater’s president repeatedly sought to obtain first-run features, initially requesting exclusive first-runs and later asking for first-runs on a “day and date” basis with downtown theaters. All respondent distributors uniformly rejected these requests, adhering to an established policy of restricting first-runs to eight downtown theaters. The distributors offered similar justifications for their refusals, including that the suburban location made the Crest less economically viable for first-run showings due to its smaller drawing area, limited public transportation access, and reduced ability to advertise and exploit new releases effectively. Some respondents also owned downtown theaters receiving their first-run product. The plaintiff relied heavily on the Paramount decrees from a previous government antitrust case against the same defendants to support its conspiracy claim.
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