* Cinema United issues warning at CinemaCon convention

* Group says merger will harm theaters and consumers

* Paramount will present upcoming films at convention on

Thursday

By Lisa Richwine

LAS VEGAS, April 14 (Reuters) - Paramount Skydance's ( PSKY )

proposed purchase of Warner Bros Discovery ( WBD ) will

consolidate too much power in one company and cause harm to

consumers and the industry, the head of a cinema trade group

said on Tuesday at the largest convention of movie theater

owners.

Warner Bros Discovery ( WBD ) agreed in March to be acquired by

David Ellison's Paramount Skydance ( PSKY ) in a $110 billion deal after

rival Netflix ( NFLX ) dropped out of the bidding. Theater

owners oppose the combination of the storied Warner Bros movie

studio, maker of the "Harry Potter" and "Superman" films, with

Paramount Pictures, arguing it will reduce competition and

result in fewer movies in cinemas.

"We believe this transaction will be harmful to exhibition,

consumers and the entire entertainment ecosystem," Cinema United

President and CEO Michael O'Leary told thousands of attendees at

the CinemaCon convention in Las Vegas.

Paramount, the studio behind such entertainment franchises

as "Mission: Impossible," "Star Trek" and "Top Gun," is

scheduled to present its upcoming movies at CinemaCon on

Thursday. Ellison has vowed that the combined company will

release 30 movies per year in theaters.

Theater owners are skeptical of Ellison's claim, pointing to

the cuts that followed Walt Disney's ( DIS ) purchase of the Fox

film studio in 2019. The two companies released 26 new titles in

more than 2,000 U.S. and Canadian theaters before they merged.

Last year, the combined studio distributed 14 wide releases.

"Unfortunately, history shows us that consolidation results

in fewer films being produced for movie theaters," O'Leary said.

He added that the Paramount-Warner Bros deal also would

affect movie schedules and the "windows" of time that films play

exclusively in theaters.

"Further concentrating marketplace power in the hands of a

smaller group of distributors that dictate the terms, windows,

scheduling, screen placement of movies, and access to historic

film catalogs will have a real and lasting impact on Main Street

and millions of movie fans around the world," O'Leary said.

Cinema United will continue urging federal, state and

international regulators to block the deal, he added.

A Paramount spokeswoman did not immediately respond to a

request for comment. Ellison has previously said both studios

will continue to operate separately, preserving and potentially

increasing jobs.

Also this week, more than 1,000 Hollywood stars and

filmmakers signed a letter opposing the deal.