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You're quite right - the building is unlikely to be used again as a cinema. In previous cases elsewhere, I know that Odeon has used restrictive covenants to expressly prevent a competitor reopening one of their former cinemas.
In my view, the most obvious use is that of a theatre. The building has a history of being used for live entertainment - in its early years it genuinely was a Paramount Theatre. Similarly, precedents from the USA, where a number of Paramount Theatres have been restored for theatrical use (see the examples on the links page), suggests that this may be a viable option.
This raises the question of whether Newcastle can really support another theatre? Given the Culture 2008 bid and all that is happening on both sides of the Tyne, my view is yes.
However, a lot of thought and creativity would need to go into creating a complex that was genuinely innovative and different to anything else in the city.
You're absolutely right that the future use is an issue, though - campaigning so far has perhaps focussed on retaining the building; I hope this site is beginning to go a little further by exploring some of the options for re-use.
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