Sony Pictures Is Set To Acquire the Alamo Drafthouse Cinema Chain

On Wednesday, Sony Pictures Entertainment announced its acquisition of the Alamo Drafthouse, the dine-in movie theater chain. This strategic move is part of Sony’s efforts to expand into the dine-in cinema market to further expand its entertainment portfolio.

Based in Austin, Texas, Alamo Drafthouse operates 35 theaters across 25 metropolitan areas. The chain gained a loyal following because of its unique combination of dine-in and cocktail menus and its stringent no-talking policy, making it a beloved destination for film enthusiasts.

Although it gained strong popularity, Alamo Drafthouse faced severe challenges during the COVID-19 pandemic, leading to a bankruptcy filing in March 2021 and the closure of several locations. However, business has since started to pick up, and last year the chain experienced a 30% increase in box office revenue compared to the previous year.

In a press release, Sony revealed that the Alamo Drafthouse Cinema chain will be managed by a newly created division, Sony Pictures Experiences. CEO Michael Kustermann will stay in his role, but he will now report to Ravi Ahuja, president and COO of Sony Pictures Entertainment.

According to trade publications like The Hollywood Reporter, Sony Pictures CEO and Chairman Tom Rothman has consistently emphasized the company’s dedication to movie theaters, even as other Hollywood studios have shifted toward streaming. In its press release, Sony Pictures highlighted other ventures, including Wonderverse, an immersive entertainment space in Chicago, and the traveling tour of Wheel of Fortune LIVE!

In the release, Ahuja stated, “Alamo Drafthouse’s differentiated movie-going experience, admired brand and devoted community fit well with this vision. Our Crunchyroll business also aligns well with their audience’s interests. 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 press release also said, “The deal reinforces SPE’s long-held commitment to theatrical exhibition and continued initiatives in experiential entertainment.”

Sony purchased Alamo Drafthouse from Altamont Capital Partners, Fortress Investment Group, and founder Tim League. The acquisition also includes Fantastic Fest, Alamo Drafthouse’s renowned film festival that showcases a variety of genre movies, spanning from science fiction to horror.