Sony Pictures Entertainment is acquiring Alamo Drafthouse Cinema, a movie theater chain known for its personality, premium food and beverage offerings and on-time policy.
The deal — creating the rare case of a Hollywood studio owning a movie theater chain — was announced Wednesday and is a solution to Alamo’s financial problems. But it also raises questions about its future — including what will and won’t change during the sale.
What is the 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 per year. 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.
A pioneer of the “dine and watch” concept, Alamo Drafthouse offers moviegoers a curated experience rather than the typical multiplex experience. There’s waiter service, movie-specific themed food, and a wide variety of events that bring movie lovers together with live music, trivia, and karaoke. The company said it is “authentic personality” sets it apart from other chains, and has been called “the coolest movie theater in the world” by Wired. Prioritizing a pleasant theatergoing experience, the chain follows its rules – no delays, no text messages, no one under 18 without an adult.
Why was the Alamo Drafthouse sold?
The company had been experiencing financial difficulties for several years. Amid the streaming boom — and the closure of theaters during the pandemic — the company filed for Chapter 11 in March 2021, citing debts of $105 million. Owners Altamont Capital Partners and Fortress Investment Group restructured the debt and three months later the company emerged from bankruptcy.
In March 2024, Alamo began exploring a sale. Several Hollywood studios were approached in addition to Sony Pictures, the studio behind blockbusters such as Bad Boys: Ride or Die It is Spider man. Financial terms of the sale were not disclosed.
What will change in cinemas?
Under Sony ownership, Alamo Drafthouse will be managed by Sony Pictures Experiences, a new division of the entertainment company. Alamo CEO Michael Kustermann will continue to oversee the theatrical business as well as run Sony Pictures Experiences. Over the past year, Sony has focused on developing live experiences — 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 can be held at Alamo locations.
Sony Pictures Entertainment President and COO Ravi Ahuja also mentioned that the studio’s Crunchyroll business, an anime streaming service, aligns with the interests of Alamo customers. Additionally, Sony will work to land the recently closed locations in Dallas-Fort Worth, as well as one in Minnesota, open back.
What won’t change?
Sony has promised to continue offering content from all studios and distributors, not just its own, so the variety of films playing shouldn’t change. All 35 of the chain’s theaters will also operate under the Alamo Drafthouse brand, rather than being renamed. The company’s headquarters will remain in Austin. Additionally, Alamo’s film festival, Fantastic Fest, is 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 cinema there ever was or will be now in ways we could only dream of” and that Sony has a deep understanding of “cinema’s ability to drive growth and create cultural impact long-lasting that perfectly aligns with everything Alamo Drafthouse stands for.”
The problem is that nothing big is changing – yet.
Do movie studios typically have movie theaters?
For decades, studios were not allowed to run movie theaters and control what was shown on screens due to a Supreme Court antitrust case (United States x Paramount Pictures) decided in 1948. The decision was rescinded in 2020, with the Department of Justice ruling that antitrust restrictions known as 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 purchased some individual theaters.
What are Alamo Drafthouse customers saying?
As a cinema chain known for its personality, compared to the traditional multiplex, there is obviously concern about the possibility of a giant like Sony taking control of the business. Austin’s NBC affiliate, KXAN-TV, spoke to some local customers which seemed cautiously hopeful – especially since the alternative is closed cinemas.
Jack Kyser, actor and director, told the outlet: “It’s always a little scary when a beloved local company is sold to a big company.” But he said he would remain “optimistic…that policymakers will take note of what people love about Drafthouse and not turn it into something that deviates from the original concept.”
