Alamo Drafthouse filed for bankruptcy in 2021 and re-emerged under new ownership. It would now be part of the new Sony Pictures Experiences division|Chris Yarzab|CC BY 2.0
Sony Pictures Entertainment is entering the movie theater business by acquiring Alamo Drafthouse Cinema, a unique theater chain known for its dine-in service and film festivals like Fantastic Fest.
The move is significant as Sony became the first studio to own a theater chain in 75 years.
Why theaters?
The acquisition aligns with Sony Pictures’ experiential initiatives. Its chief operating officer, Ravi Ahuja, noted that its Crunchyroll streaming platform films already align with the interests of Drafthouse audiences.
Sony’s Alamo purchase was made possible after the termination of the Paramount Consent Decrees in 2020, which had previously prevented studios from owning theater chains due to antitrust laws.
The decree, in place since a 1948 Supreme Court case, didn’t allow Hollywood studios to own theater chains to avoid the monopolization of movie production and distribution.
Now, studios like Netflix and Disney also own theaters, reflecting the significant changes in film distribution and exhibition over the decades.