Sony Pictures Entertainment is acquiring Alamo Drafthouse Cinema, the movie theater chain known for its personality, premium food and beverages and punctuality policy.
The deal – which creates the rare example of a Hollywood studio owning a movie theater chain – was announced Wednesday and addresses Alamo’s financial problems. But it also raises questions about its future, including what will and won’t change during the sale.
What is Alamo Drafthouse?
Alamo is the seventh largest theater chain in North America, operating 35 theaters in 25 metropolitan areas and serving approximately 10 million customers annually. Based in Austin, there are more than a dozen in Texas alone — although five locations in the Dallas-Fort Worth area operated by a franchise partner abruptly closed last week due to a bankruptcy filing. The original theater was founded in 1997 as a place for “good food, good beer and good movies,” according to the company.
Alamo Drafthouse, a pioneer of the ‘dine and watch’ concept, offers cinephiles a curated experience rather than the typical multiplex experience. There’s wait service, movie-specific food themes and a wide variety of events that bring movie lovers together with live music, trivia and karaoke. The company says its “authentic personality” sets it apart from other chains, and Wired has called it “the coolest movie theater in the world.” The chain prioritizes a pleasant theater experience and adheres to the rules: no lateness, no texting, no one under 18 without an adult.
Why was Alamo Drafthouse sold?
The company had been struggling with financial problems for years. Amid the streaming boom — and theater closures during the pandemic — the company filed for Chapter 11 in March 2021, citing $105 million in debt. Owners Altamont Capital Partners and Fortress Investment Group restructured the debt, and the company emerged from bankruptcy three months later.
In March 2024, Alamo began exploring a sale. In addition to Sony Pictures, the studio behind blockbusters, several Hollywood studios were approached Bad Boys: Ride or Die And Spider-Man. Financial terms of the sale were not disclosed.
What will change in the theaters?
Under Sony’s ownership, Alamo Drafthouse will be managed by Sony Pictures Experiences, a new division of the entertainment company. Michael Kustermann, CEO of Alamo, will continue to oversee the cinema sector and lead Sony Pictures Experiences. Over the past year, Sony has focused on expanding live experiences, such as a Wheel of Fortune live traveling tour, based on the show, and Wonderverse, an entertainment space with movie-themed attractions – so these types of events could be held at Alamo locations.
Sony Pictures Entertainment president and chief operating officer Ravi Ahuja also said the studio’s Crunchyroll business, an anime streaming service, aligns with the interests of Alamo customers. In addition, Sony will work to reopen the recently closed locations in Dallas-Fort Worth, as well as one in Minnesota.
What won’t change?
Sony promised to continue offering content from all studios and distributors, not just its own, so the variety of movies playing shouldn’t change. All of the chain’s 35 theaters will also operate under the Alamo Drafthouse brand instead of being renamed. The company’s headquarters will remain in Austin. Alamo’s Fantastic Fest film festival is also included in the sale and will continue.
Alamo founder Tim League said in a statement that the sale will help further the company’s mission “to be the best damn movie theater that ever existed, or ever will exist, in ways we could only dream of,” and that Sony has a deep understanding of “cinema’s ability to both drive growth and create a lasting cultural impact that perfectly aligns with everything Alamo Drafthouse stands for.”
The point is that nothing major will change for now.
Do movie studios usually have movie theaters?
No. For decades, studios were barred from running movie theaters and controlling what played on the screens due to an antitrust case in the Supreme Court (United States vs. Paramount Pictures) decided in 1948. The ruling was rescinded in 2020, with the Justice Department determining that the antitrust restrictions known as the Paramount Consent Decrees were no longer necessary due to the advent of multiplexes and streaming. Sony is the first major studio to buy a chain, while Netflix and Amazon have bought a handful of individual theaters.
What do Alamo Drafthouse customers say?
As a theater chain known for its personality, unlike the traditional multiplex, there is clearly concern about a behemoth like Sony taking over the company. Austin’s NBC affiliate, KXAN-TV, spoke with some local patrons who seemed cautiously hopeful — especially since the alternative is closed theaters.
Jack Kyser, an actor and director, told the outlet, “It’s always a little scary when a beloved local business is sold to a major corporation.” But he said he would “remain optimistic … that the powers that be will take note of what people like about the Drafthouse and not change it to something that deviates from the original concept.”
