Famous Movie Studio Buys Popular Theater Chain
Sony Pictures Entertainment, famous for hit films like “Bad Boys: Ride or Die” and “The Garfield Movie”, is taking a new approach in increasing its presence in the film industry. The firm recently announced the purchase of Alamo Drafthouse, a loved dine-in theater chain based in the U.S.
Celebrating Films from Other Studios
Despite the new acquisition, Sony pledged to not limit the cinema to its productions; they will continue to screen films from other studios and distributors. This move ensures that moviegoers at Alamo Drafthouse will still enjoy a broad range of films regardless of the studio that produced them.
Offshoots of the Deal – Fantastic Fest
In addition to the Drafthouse chain, the acquisition also includes the Fantastic Fest. This yearly event is a tribute to genre films, something Alamo will continue to operate. How much the deal cost remains confidential as Sony chose not to disclose the details.
A Brief Look at Alamo Drafthouse
Established in 1997 with a single screen theater in Texas’s capital, Austin, Alamo Drafthouse gradually grew to boast 35 locations across 25 cities in the U.S. It also entered major markets including the Financial District, Downtown Brooklyn, and Staten Island. The company, though struggling significantly due to the COVID-19 pandemic, holds its position as the seventh-largest theater chain in the U.S. attracting around 10 million movie lovers annually.
Unionization and Management Changes
The past year saw workers at Manhattan and Brooklyn locations vote to unionize. Meanwhile, the leadership of the company will also see some changes. Michael Kusterman, appointed as Alamo’s CEO during its post-bankruptcy era, will now head a new Sony division focused on live experiences.
Facing and Overcoming Challenges
The COVID-19 pandemic significantly affected Alamo’s expansion plans. It led to some locations shutting down and halted plans for new openings indefinitely. In March 2021, Alamo filed for bankruptcy. However, things took a turn when a new investment group took over later in the year. Even as the pandemic left its scars, six Alamo locations shut without warning just days ago.
An Opportunity for Synergy
Founder Tim League expressed his excitement over the new partnership, saying that Sony’s understanding of cinema’s potential for growth and cultural impact aligns perfectly with Alamo’s vision. Describing Alamo as “the best damn cinema that has ever, or will ever, exist”, League is eager to collaborate and dream bigger with Sony’s backing.
The Revival of Studios Owning Theaters
The purchase by Sony marks a trend in a previously prohibited practice: movie studios owning theaters. This ban, part of the Paramount Consent Decrees for 72 years, lifted in 2020. Sony now joins Netflix, Walt Disney Co., and Amazon, all of whom own and run several theaters across major cities.
Beyond Alamo Drafthouse
This is not the first foray of Sony into theater ownership. The company previously owned the Loews chain before it merged with AMC theaters. With its latest acquisition of Alamo, Sony Pictures is set to strengthen its presence and influence in the cinema industry.