Sony Pictures Enters Theater Business with Alamo Drafthouse Purchase

Alamo Drafthouse Purchased by Sony Pictures
Image source: CNBC

Sony Pictures Entertainment has bought Alamo Drafthouse Cinema, a well-known dine-in movie theater chain. The deal was announced on June 12, 2024, and it means Sony is now entering the business of running movie theaters.

Alamo Drafthouse started in 1997 in Austin, Texas, created by Tim and Karrie League. It began as a small, single-screen theater and has grown to 35 locations across North America. These theaters are famous for their unique experience where moviegoers can enjoy food and drinks while watching a film.

Sony’s purchase also includes Fantastic Fest, a popular film festival run by Alamo Drafthouse. The theater chain’s headquarters will stay in Austin, and Michael Kustermann, the current CEO, will continue in his role. He will now also lead the new Sony Pictures Experiences division, reporting to Ravi Ahuja, Sony Pictures Entertainment’s President and COO.

“We are excited to join Sony Pictures and grow our vision of providing the best cinema experience possible,” said Tim League.

“Sony respects cinema and understands its power to create cultural impact, which fits perfectly with what Alamo Drafthouse stands for.”

This deal comes after a tough time for Alamo Drafthouse. In 2021, the company filed for bankruptcy but managed to recover. Now, with Sony’s support, the theater chain looks forward to a stronger future.

Ravi Ahuja from Sony said, “Alamo Drafthouse’s special movie experience and loyal audience fit well with our goals. We look forward to enhancing what they’ve built.”

Sony’s move into the theater business is part of a trend where studios are starting to own theaters again. This was once restricted by old laws, but those restrictions ended in 2020. Now, companies like Sony and Netflix are stepping into the movie theater scene.

With this purchase, Sony aims to offer more engaging and unique experiences to movie fans. The partnership promises to take Alamo Drafthouse’s blend of movies, food, and community to new heights, continuing its legacy of providing great cinema experiences.