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Sony Pictures acquires Alamo Drafthouse
The Industry Jun 12, 2024
Alamo Drafthouse Cinema. | Photo courtesy of arcticpenguin CC BY-NC 2.0
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In a momentous move, Sony Pictures has acquired the dine-in movie theater chain Alamo Drafthouse, marking the first major Hollywood studio ownership of a theater chain in over 75 years. The announcement came on Wednesday, revealing that Sony had purchased the seventh-largest theater chain in North America from Altamont Capital Partners, Fortress Investment Group, and Alamo Drafthouse founder Tim League.
This acquisition follows the abolition of the Paramount Consent Decrees in 2020, a set of Department of Justice regulations that had prohibited film distributors from owning exhibition companies for over seven decades. Sony is the first studio to take advantage of this regulatory shift.
Michael Kustermann, CEO of Alamo Drafthouse, will remain in his position, now reporting to Ravi Ahuja, president and CEO of the newly formed Sony Pictures Experiences division.
“We are excited to make history with Sony Pictures Entertainment and have found the right home and partner for Alamo Drafthouse Cinema,” Kaustermann said in expressing enthusiasm about the transition. “We were created by film lovers for film lovers. We know how important this is to Sony, and it serves as further evidence of their commitment to the theatrical experience.”
Ahuja emphasized the compatibility of Alamo Drafthouse with Sony’s vision, saying, “Alamo Drafthouse’s differentiated movie-going experience, admired brand, and devoted community fit well with this vision. We look forward to building upon the innovations that have made Alamo Drafthouse successful and will, of course, continue to welcome content from all studios and distributors.”
The theater chain operates 35 locations across major U.S. cities, including Los Angeles, Chicago, Boston, Austin, and New York. It is popular for its strict no-texting policy and themed movie screenings, a feature that has turned it into a haven for cinephiles. Alamo Drafthouse’s downtown Los Angeles location is particularly popular.
This acquisition highlights a rapidly changing entertainment landscape dominated by streaming services. Sony is unique among major studios for not having a mass-market streaming platform.
Alamo Drafthouse, which had filed for Chapter 11 bankruptcy protection in 2021 due to pandemic-related challenges, emerged from bankruptcy under the ownership of senior creditors including Altamont and Fortress. Despite these hurdles, the chain has managed to maintain its reputation as a beloved destination for moviegoers.
“Together we will continue to innovate and bring exciting new opportunities for our teammates and moviegoers alike,” said Kustermann.
