Sony Pictures buys Alamo Drafthouse

[jimmyjazz 45,639]

Didn't see it posted, delete if redundant.  

Sony buys Alamo

[mdmost 42,954]

So can they reopen all the DFW locations and that one in Minnesota now?

Edited June 12 by mdmost

[mdleast 8,288]

and quickly??

[MissingInAction 24,870]

And the enshittening goes on...

[Michael Knight 12,950]

Well that sucks

[LCHorn 2,589]

It was a long-time coming but end of an era-Tim and Karrie League built something really cool.  I’m really interested to see what they do next.  

[nolongerU2horn 754]

why will it be worse than being owned by Altamont Capital Partners and Fortress Investment Group?

[LCHorn 2,589]

Also, I bet they didn’t pay anything but will take on debt obligations.  

[mdmost 42,954]

The Hollywood Reporter has a much longer article about it. Alamo Corporate isn't changing. 

https://www.hollywoodreporter.com/movies/movie-news/sony-pictures-acquires-alamo-drafthouse-cinemas-1235920928/

Sony Pictures Acquires Alamo Drafthouse Cinema in Landmark Deal That Puts Studios Back in Theater Game

For more than seven decades, studios weren't allowed to own an exhibition company under the Paramount Consent Decrees, which were rescinded in 2020.

BY PAMELA MCCLINTOCK, ALEX WEPRIN, JAMES HIBBERD

JUNE 12, 2024 11:00AM

 

In a groundbreaking moment, Sony Pictures Entertainment has acquired Alamo Drafthouse Cinema in a deal that puts a major Hollywood studio back in the business of owning a movie theater for the first time in more than 75 years.

From 1948 until 2020, the U.S. Department of Justice prohibited film distributors from owning an exhibition company under what was known as the Paramount Consent Decrees, which arose from a 1948 U.S. Supreme Court ruling. The decrees essentially dismantled the old Hollywood studio system by forcing the majors to divest of their theater holdings.

 

At that time, the majors essentially controlled all aspects of filmmaking, from the talent to the productions to the theaters. The decrees forced exhibitors to stop practices like “block booking” (bundling multiple films into one theater license) and “circuit dealing,” (entering into one license that covered all theaters in a theater circuit). The landscape was radically different then, however. There were no multiplexes, but rather one-screen theaters that could play one movie for months; a scenario which played into favoritism.

Sony is the first major Hollywood studio to step forward and test the waters since the decrees were rescinded.

The only major film producers to acquire theaters since 2000 were Netflix and Amazon. Netflix purchased Los Angeles’ Egyptian Theatre and New York’s Paris Theater in order to appease filmmakers who want their films to play on the big screen, as well as to qualify their titles for awards consideration. Amazon had the same aim when buying the old ArcLight location in downtown Culver City in Los Angeles, although that cinema is a first-run theater, meaning Amazon has to book new movies in addition to its offerings. (In a reverse twist, the world’s largest cinema owner, AMC Theatres, got into the distribution business last year when acquiring rights to Taylor Swift’s Eras Tour doc.)

Alamo filed for Chapter 11 bankruptcy protection in 2021, when it was still reeling amid the COVID-19 pandemic. Altamont Capital, Fortress Investment Group and League emerged as its owners post-bankruptcy. Sources say other parties looking at Alamo included Cinemark and a major exhibitor in Latin America. Alamo is hardly the only exhibitor who considered, or is considering, bankruptcy in the aftermath of the pandemic and the writers and actors strikes, which has slowed the content pipeline to a trickle (domestic revenue year to date is down more than 24 percent).

Wednesday’s announcement stressed that Alamo Drafthouse — an independent chain with 35 locations that has been at the forefront of in-theater dining and other consumer-friendly initiatives — will continue to be run by Alamo CEO Michael Kustermann, under a new division that he’ll also be in charge of, Sony Pictures Experiences. Sony said the deal reinforces its long-held commitment to theatrical exhibition and continued initiatives in experiential entertainment.

Kustermann will report to Ravi Ahuja, President and COO of Sony Pictures Entertainment.

“We are excited to make history with Sony Pictures Entertainment and have found the right home and partner for Alamo Drafthouse Cinema,” said Kustermann said in a statement. “We were created by film lovers for film lovers. We know how important this is to Sony, and it serves as further evidence of their commitment to the theatrical experience. Together we will continue to innovate and bring exciting new opportunities for our teammates and moviegoers alike.”

Added Tom Rothman, Chairman and CEO of Sony Pictures Motion Picture Group, “Alamo Drafthouse has always held the craft of filmmaking and the theatrical experience in high esteem, which are fundamental shared values between our companies. I’m jazzed that our company is doing this.”

Alamo will continue to operate all 35 of its cinemas across 25 metro areas under the Alamo Drafthouse brand. And the Alamo Drafthouse-owned Fantastic Fest, the world-renowned genre film festival, is included in the acquisition and will also continue to be operated by Alamo Drafthouse. The company’s headquarters will remain in Austin, Texas.

“We believe strongly in engaging entertainment fans outside the home in fun and distinctive ways as seen most recently with our Wheel of Fortune LIVE! traveling tour, and the opening of Wonderverse in Chicago,” Ahuja said in a statement. “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.”

Alamo Drafthouse was founded in 1997 by Tim and Karrie League as a single-screen mom and pop repertory theater in Austin, Texas, and has grown into a thriving and dynamic dine-in cinema chain that is beloved by its fans and the industry alike.

As North America’s 7th largest theater chain, it releases more movies per year than any other theater chain, welcomes over 10 million guests annually, and has built a highly engaged core audience of 4 million loyalty members. Last year, the theater chain saw a 30 percent jump in box office revenue from the previous year, which came in ahead of the industry at large.

SPE acquired Alamo Drafthouse from owners Altamont Capital Partners, Fortress Investment Group and founder Tim League. Goldman Sachs & Co. LLC acted as exclusive financial advisor to Alamo Drafthouse in the transaction.

“We are beyond thrilled to join forces with Sony Pictures Entertainment to expand our company vision to be the best damn cinema that has ever, or will ever, exist now in ways we could only ever dream of,” said Alamo founder Tim League. “They have a deep respect and understanding of cinema’s ability to both drive growth and create lasting cultural impact which aligns perfectly with everything Alamo Drafthouse stands for.”

The news is sure to be met with a mixture of relief and worry by the chain’s famously devoted fans. 

On one hand, Alamo has been battling serious financial problems since it declared bankruptcy during the pandemic in 2021 and was rescued by a private equity firm. Last week, five North Texas locations closed amid a franchisee likewise filing for bankruptcy. Sony coming on board gives the theater chain some assuredly solid financial backing moving forward, and hopefully investment for further expansion. 

Yet Alamo — which currently operates theaters in 14 states — is arguably the only theater chain in the country with a very specific and well-honed personality, one you can trace back the company’s roots as a single room theater founded in downtown Austin. 

Alamo’s movie pre-shows, for instance, are full of clever and carefully curated archival footage related to the upcoming film (with no advertising). The chain invests in ongoing unique programming (like its popular Master Pancake live movie mocking events). It hosts occasional bold stunts — such as a 2015 Star Wars movie endurance marathon where a theater full of fans competed to see who could endure watching the sci-fi saga the longest (the winner lasted for 46 hours straight). Alamo also has what’s considered the country’s strictest theater chain no talking and no texting policy, which it pioneered with pre-show ads like this famously profane viral example. 

One question moving forward will be: Will Alamo be able to keep its independent spirit now that it’s under major studio ownership, although generally speaking, studios aren’t involved with such things as pre-show ads or cinema policies. That’s up to the exhibitors.

Edited June 12 by mdmost

[Stringer 1,438]

I'm dubious but hopeful.  If Sony puts in money where it is needed and stays out of the way, could be good.  Big companies aren't known for that though.

Best case is probably that it's such a small part of their film business that no one really pays attention to it and it can just do its' thing.  

[MissingInAction 24,870]

Anybody ever see , "Gung Ho"?

 

[LCHorn 2,589]

6 minutes ago, Stringer said:

I'm dubious but hopeful.  If Sony puts in money where it is needed and stays out of the way, could be good.  Big companies aren't known for that though.

Best case is probably that it's such a small part of their film business that no one really pays attention to it and it can just do its' thing.  

I think it’s telling that the League’s were bought out.  I would think Sony would be happy to have them on board, even if it’s just for appearances.

[mdmost 42,954]

2 minutes ago, LCHorn said:

I think it’s telling that the League’s were bought out.  I would think Sony would be happy to have them on board, even if it’s just for appearances.

Weren't the Leagues bought out by the PE firm? Isn't Tim League's title just that of Founder?

[AUS-97HORN 11,731]

5 minutes ago, MissingInAction said:

Anybody ever see , "Gung Ho"?

 

[LCHorn 2,589]

1 minute ago, mdmost said:

Weren't the Leagues bought out by the PE firm? Isn't Tim League's title just that of Founder?

I don’t know how big a piece they actually had remaining but the PE firm kept him on-they initially had Tim as CEO and I expect that was part of the deal (I.e, they wanted him as CEO and in exchange he retained some ownership).  
 

Again, this is all presumptions, but I think he got really tired trying to manage the increasingly insolvent business and also caught flack for not providing sufficient sexual harassment protection amongst theater staff (which is probably somewhat a byproduct of running a business that was kind of boot-strapped and informal from inception).  Add Covid breaking theatrical and they’ve kind of been running a zombie business.  
 

At least locally, it wasn’t food that made Alamo, it was that it was fun.  It was the programming, the Rolling Roadshow, doing crazy stuff that probably didn’t make a lot of money but created a kinship amongst patrons that the owners and staff were huge nuts about curating an experience.  That part didn’t get revived after Covid and I think THAT is what Tim lived for.  
 

[SimonBolivar 10,949]

20 minutes ago, LCHorn said:

 

At least locally, it wasn’t food that made Alamo
 

If it was they would've been out of business decades ago.

 

Is Masterpancake still going strong? I haven't been since the Ritz closed.

[mdleast 8,288]

6 minutes ago, SimonBolivar said:

If it was they would've been out of business decades ago.

 

Is Masterpancake still going strong? I haven't been since the Ritz closed.

Yes, Master Pancake is still going strong (they are actually named checked in the Hollywood Reporter article) and does pretty regular in theater shows these days plus, even better for those of us fans that don't live in Austin since Covid, they do regular shows online each week on Twitch.

 

Mdmost and I have been fans of the Alamo since that original 1 screen theater on 4th and Colorado and I have followed them and their inner workings (from afar as an uber-fan) throughout their expansion.  While I can agree with those that feel the zenith of the Alamo was the original Tim and Karrie League-owned days, I think the reality is that it has become more and corporate for many many years now (starting back when they started really expanding into other markets and continuing through the bankruptcy/private equity change).  I will be curious to see what Sony ownership brings but, especially as someone here in Dallas with presently closed Alamos, I am excited to at least have a new infusion of money/ownership and they are at least currently paying lip service to honoring all that has made Alamo the brand it is today.

[MissingInAction 24,870]

Went to see the original Shaft at 4th and Colorado. We got 40s of Schlitz malt liquor with our ticket purchases.

[utxmike05 1,825]

Could have been worse.  Glad they were "saved" from possible extinction.  Hopefully it's not all talk and Sony really wants to keep the same atmosphere.  The original founder will be an advisor...

My Alamo in Katy is safe.

[gofuckyourself 8,164]

12 minutes ago, MissingInAction said:

Went to see the original Shaft at 4th and Colorado. We got 40s of Schlitz malt liquor with our ticket purchases.

Saw Repo Man there.

They served "Beer." Young hip me was very impressed.

[MissingInAction 24,870]

Also went to the Spike and Mikes Twisted animation festival.

That was an experience.

They asked for a male and female volunteer. 

I was picked. 

Once on stage we were challenged with a contest to eat fruit off each other's crotches without using our hands. Yes we remained clothed.

For me I held a peeled banana in front of my junk and she took it down like a pro.

For her she laid down on a table. Then they put whip cream on her with a cherry on top. You best believe I licked those pants clean.

[yoladu 4,078]

Quote

Sony said the deal reinforces its long-held commitment to theatrical exhibition and continued initiatives in experiential entertainment.

[KaiserSoze 997]

I've been going to Fantastic Fest for the last ~10 years and it is f'ing awesome. I'm curious to see if anything changes at all with this.  I'm hoping they'll keep it awesome.

 

It is a great time of year in Austin- Fantastic Fest ends and then a week later is always ACL Weekend 1.

[Chopper 17,192]

fwiw, just came across this on my timeline

https://www.splinter.com/alamo-drafthouses-long-history-of-minimizing-sexual-ass-1822816916

[Deej 76,642]

1 hour ago, MissingInAction said:

Also went to the Spike and Mikes Twisted animation festival.

That was an experience.

They asked for a male and female volunteer. 

I was picked. 

Once on stage we were challenged with a contest to eat fruit off each other's crotches without using our hands. Yes we remained clothed.

For me I held a peeled banana in front of my junk and she took it down like a pro.

For her she laid down on a table. Then they put whip cream on her with a cherry on top. You best believe I licked those pants clean.

And that female? You guessed it...FitLump.

[MissingInAction 24,870]

10 minutes ago, Deej said:

And that female? You guessed it...FitLump.

Come to mention it she did have red hair.

Edited June 12 by MissingInAction

[nolongerU2horn 754]

16 hours ago, mdleast said:

Yes, Master Pancake is still going strong (they are actually named checked in the Hollywood Reporter article) and does pretty regular in theater shows these days plus, even better for those of us fans that don't live in Austin since Covid, they do regular shows online each week on Twitch.

Yep, they even just did a show in NYC a couple weeks ago

[Hermanator 7,000]

Why were the Paramount decrees rescinded in the first place? Such a weird anti-monopoly regulation to just randomly get rid of while pandering to corporate greed. 

Although, given the year it happened I have an idea who was paid off by big Hollywood to make it happen

[TwiceHorn 31,360]

1 hour ago, Hermanator said:

Why were the Paramount decrees rescinded in the first place? Such a weird anti-monopoly regulation to just randomly get rid of while pandering to corporate greed. 

Although, given the year it happened I have an idea who was paid off by big Hollywood to make it happen

For better or worse, because of so many competitive alternatives to movie theaters.  I also think the nature of Hollywood is different now so the anti-competitive practices of yore are far less likely.

[Texzilla588 769]

Why were the Paramount decrees rescinded in the first place? Such a weird anti-monopoly regulation to just randomly get rid of while pandering to corporate greed. 
Although, given the year it happened I have an idea who was paid off by big Hollywood to make it happen

They should have been rescinded probably 15 years ago. The world has changed greatly in terms of distribution since it was put in. Why shouldn’t a content creator be able to own a channel of distribution? Netflix does. HBO does. Amazon does. Combine that with the collapse of theaters. If a studio wants to own a few theaters then come on.

[PilotsError 2,286]

11 hours ago, Hermanator said:

Why were the Paramount decrees rescinded in the first place? Such a weird anti-monopoly regulation to just randomly get rid of while pandering to corporate greed. 

Although, given the year it happened I have an idea who was paid off by big Hollywood to make it happen

 

Obama was the only president in 2020...

[Hermanator 7,000]

1 hour ago, Texzilla588 said:

They should have been rescinded probably 15 years ago. The world has changed greatly in terms of distribution since it was put in. Why shouldn’t a content creator be able to own a channel of distribution? Netflix does. HBO does. Amazon does. Combine that with the collapse of theaters. If a studio wants to own a few theaters then come on.

Studios owning a few theaters no problem. 

Studios going full corporate America and deciding to buy up theaters while hurting competing non studio owned theaters through limiting access to their movie rights is where this most likely ultimately ends up if they decide to take it that far. The choice shouldn't be theirs to decide just like it should not be in any industry. 

It's the case in the live music and live sports ticketing industry where everything is funneled through ticketmaster because they hold a monopoly on venues rights. As Pearl Jam and many others famously found out it's virtually impossible to schedule an American tour of their caliber without Ticketmaster as you can never book a venue above a certain size in America. The regulations on the movie industry were put in to protect against this very thing. Why remove it to give them the option? 

 

 

Edited June 14 by Hermanator

[TwiceHorn 31,360]

56 minutes ago, Hermanator said:

Studios owning a few theaters no problem. 

Studios going full corporate America and deciding to buy up theaters while hurting competing non studio owned theaters through limiting access to their movie rights is where this most likely ultimately ends up if they decide to take it that far. The choice shouldn't be theirs to decide just like it should not be in any industry. 

It's the case in the live music and live sports ticketing industry where everything is funneled through ticketmaster because they hold a monopoly on venues rights. As Pearl Jam and many others famously found out it's virtually impossible to schedule an American tour of their caliber without Ticketmaster as you can never book a venue above a certain size in America. The regulations on the movie industry were put in to protect against this very thing. Why remove it to give them the option? 

 

 

https://en.wikipedia.org/wiki/United_States_v._Paramount_Pictures%2C_Inc.

A whole hell of a lot has changed since 1948 as regards the making and distribution of films.

[Hermanator 7,000]

14 minutes ago, TwiceHorn said:

https://en.wikipedia.org/wiki/United_States_v._Paramount_Pictures%2C_Inc.

A whole hell of a lot has changed since 1948 as regards the making and distribution of films.

It has, but the anti monopoly regulations still protect against future changes in the industry that could lead towards parasitic monopolistic practices in the field. Perhaps the regulations should have been amended to suit the current landscape, but I'll never agree with wholesale abolition of anti-monopoly regulation in any industry. The American consumer is already getting fucked sideways in so many industries we don't need less protection. Corporations are purely profit driven entities proven to give little to no consideration to the well-being of the consumer or employee so it's incumbent on governmental regulation to establish boundaries. 

But again, given the time it happened it's obvious why it happened. 

Edited June 14 by Hermanator

[Texzilla588 769]

I think you are thinking a retail/service corporation is the same as a coal mining company. Experiential operators like theaters have a ton of challenges getting folks to put down their phone and buy a ticket and cross the lease line. Also in a content creator corporation the driver for them is getting a movie distributed to as many theaters as possible. Sony will have to be competitive in the market to other theaters to ensure their films get as much distribution as possible.

I’m a retail veteran with over 50 years experience with national chains, regionals, startups, family operators, dot coms etc, mainly in electronics. In all those years Sony Electronics never got a break from Sony Music or Sony films. In fact Sony Music obstructed several technologies that Sony Electronics wanted to introduce, some of which were actions contrary to the Sony BetaMax case.

I’m not a monopolist. I’m a believer in competition. But situations change and content is disseminated and consumed very differently now. Theaters will go away if the business model can’t change. The issue isn’t theater ownership but competition from other formats. Day and date release finally started during Covid and will be the ongoing model.

[MrBig 5,313]

7 hours ago, Texzilla588 said:

They should have been rescinded probably 15 years ago. The world has changed greatly in terms of distribution since it was put in. Why shouldn’t a content creator be able to own a channel of distribution? Netflix does. HBO does. Amazon does. Combine that with the collapse of theaters. If a studio wants to own a few theaters then come on.

The Paramount Decrees covered much more than a studio owning a chain of movie theaters. The Decrees created barriers between owners of production, distribution, and exhibition and set limits on what practices can be used by major studios to make movies accessible to the public. 

Today the Decrees are considered “outdated” because of modern streaming technology. Big streamers like Netflix, Apple and Amazon are not subject to the same Decree rules as major studios like MGM and Paramount. 

The idea is that since the streamers don’t have to abide by the rules, the Paramount Decrees and all of the antitrust laws it entails should be repealed to create a level playing field for movie studios and streamers alike. What gets lost in this argument is that vertical integration of the entire industry (major studios + big streamers) means independent filmmakers outside of the studio-streamer networks have an even harder chance of getting their films seen by a wider audience. What incentive do major streamers and studios have to buy independent films if they can just produce and exhibit their own films on their own platforms without paying for licensing? 

Since the repeal, Amazon has bought the global distribution rights to Paramount as well as buying MGM outright. This type of ownership means Amazon controls global distribution of Paramount films and can stop movies from being released by independent theaters in favor of a wide release exclusively for Amazon Prime subscribers. This is bad for independent theater owners who miss out on a highly anticipated film because it goes straight to Prime. A partnership like this would never be possible prior to the repeal.

I’m interested in seeing how the Sony purchase of the Drafthouse plays out.

[TwiceHorn 31,360]

6 hours ago, Hermanator said:

It has, but the anti monopoly regulations still protect against future changes in the industry that could lead towards parasitic monopolistic practices in the field. Perhaps the regulations should have been amended to suit the current landscape, but I'll never agree with wholesale abolition of anti-monopoly regulation in any industry. The American consumer is already getting fucked sideways in so many industries we don't need less protection. Corporations are purely profit driven entities proven to give little to no consideration to the well-being of the consumer or employee so it's incumbent on governmental regulation to establish boundaries. 

But again, given the time it happened it's obvious why it happened. 

Also, these aren't regulations per se.  It was a court ruling in the form of an injunction.  

Broadly speaking, an Injunction, although it is prospective in action, addresses past behavior.  The conditions that led to that behavior no longer exist.  Partly because of the injunction, and partly because of technological advances.

For future or predictive/predictable behavior, we probably really would prefer to rely on legislative action, that is, actual regulation.

I don't disagree that corporations need more regulation.  I'm not sure this was really the way to do it on a long-term basis.

If Congress won't act with actual regulation, then it's probably preferable that DOJ or FTC bring another antitrust case based on  modern conditions and actual behavior.

[CooterBrown 17,951]

On 6/12/2024 at 3:24 PM, mdleast said:

Yes, Master Pancake is still going strong (they are actually named checked in the Hollywood Reporter article) and does pretty regular in theater shows these days plus, even better for those of us fans that don't live in Austin since Covid, they do regular shows online each week on Twitch.

Mdmost and I have been fans of the Alamo since that original 1 screen theater on 4th and Colorado and I have followed them and their inner workings (from afar as an uber-fan) throughout their expansion.  While I can agree with those that feel the zenith of the Alamo was the original Tim and Karrie League-owned days, I think the reality is that it has become more and corporate for many many years now (starting back when they started really expanding into other markets and continuing through the bankruptcy/private equity change).  I will be curious to see what Sony ownership brings but, especially as someone here in Dallas with presently closed Alamos, I am excited to at least have a new infusion of money/ownership and they are at least currently paying lip service to honoring all that has made Alamo the brand it is today.

I'm good friends with one of the original pancake guys. He also used to work at Alamo corporate and was one of the event planners. There was an entire team tasked with coming up with event ideas and implementing them.  They were all laid off during COVID and none were hired back after the new CEO took over during COVID.  That was when things really changed. There wasn't anyone left at the company to make Alamo the Alamo.

[nolongerU2horn 754]

17 minutes ago, CooterBrown said:

I'm good friends with one of the original pancake guys. He also used to work at Alamo corporate and was one of the event planners. There was an entire team tasked with coming up with event ideas and implementing them.  They were all laid off during COVID and none were hired back after the new CEO took over during COVID.  That was when things really changed. There wasn't anyone left at the company to make Alamo the Alamo.

Hey, I know Joe too. Owen and I were roommates off and on at UT and right after

 

 

.

Edited June 14 by nolongerU2horn

[Texzilla588 769]

Also, these aren't regulations per se.  It was a court ruling in the form of an injunction.  
Broadly speaking, an Injunction, although it is prospective in action, addresses past behavior.  The conditions that led to that behavior no longer exist.  Partly because of the injunction, and partly because of technological advances.
For future or predictive/predictable behavior, we probably really would prefer to rely on legislative action, that is, actual regulation.
I don't disagree that corporations need more regulation.  I'm not sure this was really the way to do it on a long-term basis.
If Congress won't act with actual regulation, then it's probably preferable that DOJ or FTC bring another antitrust case based on  modern conditions and actual behavior.

I believe horizontal monopolies are worse than verticals. Example: Albertsons/Kroger merger is very bad but I’ve not seen any politician speaking against it from any party.

[TwiceHorn 31,360]

1 hour ago, Texzilla588 said:

I believe horizontal monopolies are worse than verticals. Example: Albertsons/Kroger merger is very bad but I’ve not seen any politician speaking against it from any party.

Generally or historically true.  Vertical integration usually has a better business case/justification than horizontal and tends to be thought to be sort of self-policing like predatory pricing.

[Davis Lane 5,561]

Maybe Sony will bring back Fish-N-Chips.

[DDD Dad 14,272]

I just hope it means corporate will reopen the DFW franchisee locations.