The acquisition of Alamo Drafthouse by Sony represents a remarkable example of a film studio acquiring a cinema chain. Alamo Drafthouse is known for its unique combination of dining and cinematic experience, making it a popular destination for movie lovers, especially in major cities like New York, Los Angeles, Austin, and Boston.
The acquisition comes at a time when the cinema industry is struggling with a weak summer box office and the challenge of luring audiences back from their home couches to theaters. Alamo Drafthouse, which offers a mix of mainstream and indie films, is the seventh largest cinema chain in North America and attracts more than 10 million visitors annually.
At Alamo Drafthouse cinemas, moviegoers can order food and drinks, including themed alcoholic beverages, directly to their seat during the movie. Current offerings include the "Transylvania Mule," a berry-lime-cherry drink inspired by the horror film "Vampire’s Kiss," as well as a bacon-wrapped hotdog in honor of "Indiana Jones and the Last Crusade.
Movie theaters are increasingly offering creative menus and new attractions to make visits more exciting. Streaming services and film studios are investing more in such experiences to deepen fans' connection to popular franchises and generate additional revenue through ticket sales, merchandise, and concessions.
Alamo will continue to operate its more than 30 theaters, according to Sony. The company did not provide details on the financial aspects of the deal.
The acquisition marks Sony's first foray into the live events sector with the establishment of a new division called Sony Pictures Experiences. This will be led by Alamo Drafthouse CEO Michael Kustermann, who will retain his position as head of the cinema chain.
For years, Sony has licensed the rights to some of its most popular franchises to live event producers abroad. These include "Jumanji" attractions operated by Merlin Entertainments, as well as a film park in Thailand called Columbia Pictures Aquaverse, featuring attractions such as a "Bad Boys" car race track, a "Ghostbusters" water slide, and a "Cloudy With A Chance of Meatballs" river adventure.
The new business division will initially focus on the cinema experience. More than half of Alamo's revenue comes from concession sales. Perks such as food and drinks have helped build a loyal fan base, according to Sony.
Alamo Drafthouse was founded by Tim and Karrie League in 1997 and started as a single-screen theater converted from a parking garage in Austin, Texas. The first theater outside of Texas opened in 2009. The company's headquarters remain in Austin, according to Sony.
Alamo will remain independent, and films from Sony Pictures Studios will not be given preferential treatment. Sony acquired Alamo from the owners Altamont Capital Partners, Fortress Investment Group, and Tim League. This group had taken over the company after Alamo filed for Chapter 11 bankruptcy in 2021, when many theaters were closed for an extended period due to the Covid-19 pandemic.
With the acquisition of Alamo Drafthouse Cinema, Sony is making a strong statement in the cinema and entertainment industry. The combination of cinema and dining, along with the creation of unique film experiences, could revolutionize the movie-going experience and bring more people back to theaters.
