The Justice Department has launched a preliminary investigation into allegations that major movie studios may be exerting undue control over the way films are distributed, sources familiar with the probe say. Block booking is an illegal tactic in which studios force theaters to make room for weak movies in order to obtain the rights to show potential blockbusters.
Clearances give specific theaters exclusive rights to show a film in a specific region.
Sources tell CNN that the Justice Department last week sent out investigative demands, the civil equivalent of subpoenas, to a number of companies in the movie industry, requesting documents about distribution practices. MGM Online Loews Cineplex Regal Cinemas External sites are not endorsed by CNN Interactive. All Rights Reserved. Terms under which this service is provided to you. Read our privacy guidelines .