Subscriber Benefit
As a subscriber you can listen to articles at work, in the car, or while you work out. Subscribe Now
For the first time in several decades, a major film studio has bought a theater chain.
Sony Pictures Entertainment has acquired Alamo Drafthouse Cinema, the companies said Wednesday. Alamo, which operates 35 dine-in movie theaters across several states, will become part of a new division called Sony Pictures Experiences, which will be led by Alamo CEO Michael Kustermann.
The companies, which did not immediately respond to a request for comment, did not disclose the deal’s financial terms.
Indianapolis is expected to get its first Alamo Drafthouse this year at 3898 Lafayette Road, in the International Marketplace neighborhood by Lafayette Square. The company’s website lists the 14-screen theater as “coming soon.”
Alamo Drafthouse is best known for its food and drink service during screenings. The chain is also popular among movie lovers for its specialty screenings and zero-tolerance talking and texting policy.
Wednesday’s news marks the first deal of its kind since the 2020 abolition of the Paramount Consent Decrees, which had stipulated that film distributors could not own entire cinema chains, stemming from a landmark 1948 court case. The decrees were abolished by a federal court in 2020 after being deemed outdated for newer platforms and business models in the contemporary film industry.
Sony said in a statement that it will “continue to welcome content from all studios and distributors” at Alamo Drafthouse locations.
Alamo had been looking for buyers, according to entertainment industry trade publications. Like other movie theater chains, the company had a difficult time during the pandemic, filing for Chapter 11 bankruptcy protection in 2021. But Alamo said that its box office revenue grew 30 percent last year.
In a statement, Sony said the Alamo deal reinforces its commitment to theatrical exhibition and experimental entertainment.
“Alamo Drafthouse’s differentiated moviegoing experience, admired brand and devoted community fit well with this vision,” said Ravi Ahuja, president and chief operating officer of Sony Pictures Entertainment.
Please enable JavaScript to view this content.
Interesting location but I’m here for it! We love specialty films on the west side!
Cool
Similar moves will become increasingly necessary for theater chains to continue to exist and for the large studios to compete against the likes of Netflix, Apple TV, etc. Studios need the theaters to remind people of the experience of leaving the living room, and the theaters continue to need help. Regarding Indy, bummer of a location choice.