On the eve of CineEurope 2024 I was hoping to use this week’s Marquee to provide a brief overview of what we have to look forward to in Barcelona, Spain during next week’s conference. Alas, I wouldn’t be the first editor in history to have their best laid editorial plans thwarted by last minute additions to the usual news cycle.
No, I’m not referring to how the sale of Paramount Global to Skydance Media was blown up by its chairwoman Shari Redstone midweek. That situation would take a business school dissertation to explain. Rather this week’s unexpected interruption came when Sony Pictures Entertainment announced the acquisition of Texas-based, dine-in cinema pioneer Alamo Drafthouse Cinema, which I’ll get to in just a moment.
Originally, I was going to tell you why I want to visit Arts Alliance Media at CineEurope to see the latest updates of their software solutions. We just published their case study on Screenwriter, AAM’s theatre management system, hand how it is saving Cinema West Theatres over 2,500 man-hours per year by helping the circuit optimize their content management operations. After getting a demo of how their TMS works on a tablet or mobile device I was going to see if perhaps they could develop a solution that will help me save a similar amount of time going through my email backlog. (A guy can always dream…)
At some point during this year’s CineEurope I’d really like to head over to Ferco’s booth (#315) to try out the Zero Gravity technology they include in their seating. Ferco just installed seats in a whole bunch of auditoriums at the Aurum Theatre in Kuala Lumpur, Malaysia which use the tech and I want to see what all the fuss is about.
Naturally, I’ll also swing by a whole bunch of booths and suites showing off the latest imaging technology. Harkness Screens (suite MR 121) is sure to have their new Hugo screen on display and CINITY (booth #301) will have info about the new premium format offering they are marketing through this very newsletter. I also plan on dropping into Barco’s suite (MR 111) to get the latest updates on their high dynamic range projector. Plus LG, Samsung and Timewaying will all be in Barcelona showing off their LED screen technology. I hope to also spend some time with GDC (suite M131) to hear more about DTS Surround, literally and figuratively. Of course, Vista Group always has shiny new solutions to check out. If you haven’t seen their Oneview app already, it’s really worth checking out.
Yet, as Film Expo Group President Andrew Sunshine explained during our last CJ Cinema Summit, finding time to see the entire trade show floor may be a challenge this year since CineEurope’s schedule is packed with tons of panels, seminars, studio presentations and film screenings. Coca-Cola’s sessions in Barcelona are always highlights and I’m looking forward to both their talk on unattended retail on Tuesday, as well as their seminar with McLaren F1 on Wednesday morning. I’m going to ask McLaren if I can take one of their Formula 1 cars for a spin. (Like I said, a guy can dream…)
Instead of giving CineEurope our intended in-depth preview, I would be remiss if I didn’t cover the acquisition of Alamo Drafthouse. We had already written up another story on Alamo or this week’s newsletter about six of its locations closing after one of it’s franchisees filed for bankruptcy. In any normal week, that would have been the big news about Alamo, but instead North America’s seventh largest cinema chain decided to bury the lede by selling itself to an unlikely buyer.
That Alamo was sold off wasn’t so much the surprise, since the circuit was not-so-secretly put up or sale over the past year by its private equity financiers Altamont Capital Partners and Fortress Investment Group. What nobody saw coming was a major Hollywood studio like Sony Pictures swooping in to purchase exhibitor.
The announcement sent text messages flying and phones of industry executives ringing as everyone with even the slightest interest wanted to either know what the acquisition meant, or confirm their own thinking about the transaction. I fell in to the latter camp. My initial thought was that Sony has been one of the few studios that had always publicly supported theatrical exhibition through the COVID pandemic and (thanks to not launching its own streaming service) actually had the cash-on-hand to make such an investment. The move confirms their commitment to the existing cinematic ecosystem.
You probably don’t want to get me started on how off-base much of the mainstream media reporting on the deal was, especially regarding its historical significance. Numerous outlets were quick to point out the purchase comes after the United States Department of Justice repealed the Paramount Consent Decrees in 2020, which in 1948 forced major studios to divest their movie theatre holdings. They claimed it marked the first time in over half a century that a major Hollywood studio has ventured into the theatre business. Perhaps they forgot that Sony previously owned Loews Cineplex throughout the 1990s until the circuit merged with AMC Theatres in 2005. Thus, the Sony acquisition of Alamo has nothing to do with the consent decrees being sunsetted.
We’ll be publishing some additional in-depth analysis on the Sony / Alamo Drafthouse acquisition in the coming days, but until then, we’ll be getting set to see everyone at CineEurope.
Exhibitors
Sony Pictures Gobbles Up Alamo Drafthouse Cinema
Sony Pictures Entertainment has acquired Alamo Drafthouse Cinema, the Austin-based theatre chain known for its experiential dine-in movie theatres. The deal, announced on 12 June, places Alamo Drafthouse under SPE’s newly created division, Sony Pictures Experiences and serves to underscore the studio’s commitment to theatrical exhibition.
Michael Kustermann, will stay on as CEO of Alamo Drafthouse, and head Sony Pictures Experiences. Alamo will maintain its brand identity and continue operating its 35 cinemas across 25 metropolitan areas. The company’s Austin, Texas headquarters and its renowned genre film festival, Fantastic Fest, will also remain unchanged. “Alamo Drafthouse’s differentiated movie-going experience, admired brand, and devoted community fit well with our vision,” said Ravi Ahuja, President and COO of SPE, highlighting the synergy between SPE’s experiential entertainment initiatives and Alamo Drafthouse’s unique offerings. The acquisition is seen as a strategic move to enhance SPE’s engagement with entertainment fans through distinctive, out-of-home experiences.
Founded in 1997 by Tim and Karrie League, Alamo Drafthouse has grown to become North America’s seventh-largest theater chain, with over 10 million guests annually and a core audience of 4 million loyalty members. The theater chain experienced a 30% increase in box office revenue last year, outperforming the industry average. SPE acquired Alamo Drafthouse from Altamont Capital Partners, Fortress Investment Group, and Tim League, with Goldman Sachs acting as the exclusive financial advisor for the transaction. Financial details of the sale were not disclosed though at least one report put the price tag at just north of USD $200 million.
Source: Celluloid Junkie
Trade Groups
New Report Highlights Cinemas’ Cultural, Social, and Economic Impact in Europe
The International Union of Cinemas (UNIC), International Confederation of Arthouse Cinemas (CICAE), and Europa Cinemas have jointly released a comprehensive report titled “Box Office and Beyond: the cultural, social and economic impact of cinema.” Authored by Omdia, the report underscores the crucial role cinemas play in promoting diverse films and perspectives, supporting local communities, and fostering social connectedness, emphasizing the irreplaceable experience of movie theatres offer. The report also aims to inform new members of the European Parliament, elected last weekend, by acting as a resource for political decision-makers.
The report details how cinemas remain a central cultural and social activity across Europe, driving community engagement and supporting the film ecosystem. With approximately 40,000 screens in 12,300 cinemas employing nearly 100,000 people in major European countries, cinemas are a significant part of the media economy. Fatima Djoumer, CEO of Europa Cinemas, highlighted the resilience and innovation within the post-COVID exhibition sector, stating, “Cinemas are more vibrant than ever! They play a key role in the circulation of European films and the discovery of new directors and talents. Innovation is at the heart of what exhibitors do.”
Laura Houlgatte, CEO of UNIC, emphasized the unique qualities of European cinemas, from multiplexes to single screens and municipal to independent cinemas, noting their role as cherished community hubs and economic drivers. Dr. Christian Bräuer, President of CICAE, reiterated the importance of mission-driven cinemas for cultural diversity and the health of the audiovisual ecosystem, stating, “They are crucial economic, cultural, and social hubs essential for preserving our rich cultural heritage, promoting local talent, and supporting the creative economy.” The report calls for continued support from political leaders to ensure cinemas can continue to bring great stories to the Big Screen and create magical memories for audiences.
Source: International Union of Cinemas (UNIC)
Trade Groups
New Report Details Regulatory and Support Measures for European Cinema Exhibition Sector
The European Audiovisual Observatory has released a comprehensive analysis titled “Curtains Up on Regulation and Support Measures for the Cinema Exhibition Sector,” exploring the regulatory frameworks and public support mechanisms that shape the motion picture exhibition landscape in Europe. Authored by Sophie Valais, Deputy Head of the Observatory’s Department for Legal Information, the report delves into the historical and contemporary aspects of cinema exhibition, including the impact of regulatory measures and public funding on the cinema industry. The report aims to provide a roadmap for sustainable recovery and growth in the wake of disruptions caused by the COVID-19 pandemic, with policymakers, cinema operators, and industry stakeholders as its target audience.
The Observatory’s report examines the film commercialization circuit, highlighting the roles of distributors and exhibitors, and explores market trends such as cinema attendance and box office structures. It also addresses new strategies to attract audiences in an era increasingly dominated by streaming services and provides a solid education of the challenges and opportunities within the sector.
Perhaps the report is geared towards newly elected members the European Parliament as later chapters analyze Europe’s dual approach to public intervention in the cinema sector, a tactic that balances competition rules with cultural policy objectives. Entire chapters are dedicated to national regulatory tools, such as economic permits and cultural quotas, and others that outline the relevant EU legal framework on issues like theatrical exclusivity and release windows. Like similar reports, it also emphasizes the importance of a collective cinema experience and advocates for a balanced approach integrating technological innovation with public policies to ensure the vitality and cultural diversity of European cinema.
Source: European Audiovisual Observatory
People
George Rouman, Theatre Owner and Cinema Industry Leader, Dies at 51
George Rouman, President of the family-owned century-old movie theatre circuit Rouman Amusement Company, died on 9 June 2024 in a car accident in Skanawan, Wisconsin. He was 51-years-old.
Rouman, whose cinema chain owns and operates ten screens in two locations in Rhinelander, Wisconsin, was a well respected leader in the North American cinema industry, serving on the Advisory Board of the National Association of Theater Owners for over 20 years. He was on the Board of Directors for the regional association, NATO of Wisconsin & Upper Michigan, since 2002, becoming the organization’s President in 2016.
For nearly two decades, Rouman served as Co-Chairman for the Lake Geneva Convention, a regional movie theatre conference which provides educational seminars, panel discussions, movie screenings, and networking opportunities for other independent cinema owners.
During the early days of COVID-19, Rouman organized video calls with members of NATO of Wisconsin & Upper Michigan, to discuss ideas and ways to get through the pandemic. He was the first regional leader to convince Wisconsin lawmakers that movie theaters were the heart of many small towns across state and would ultimately need financial assistance to stay afloat. The grant program he initiated was modeled across the country.
In addition to leading the Rouman Amusement Company, which operates several movie theaters across northern Wisconsin, Rouman was a prominent entrepreneur and community leader in Rhinelander. He owned the Fun Factory Sweet Shoppe, a popular local candy store. Rouman’s untimely passing has left the tight-knit Rhinelander community in mourning for one of its most beloved and influential figures.
Source: Celluloid Junkie
Sponsor Spotlight
Curious about CINITY? Learn more at CineEurope 2024
Filmmakers such as Ang Lee and James Cameron have already expressed their appreciation for CINITY, a brand-new cinema format. Visit booth #301 to learn how you can bring brighter images, with 3 times higher contrast, 5 times the normal frame rate, and 34% more color looks like in 3D or 2D to your premium large format cinema.
Visit CINITY at Booth #301 during CineEurope.
Celluloid Junkie is the leading online resource dedicated to the global film and cinema business. The Marquee is our newsletter focused on motion picture exhibition; keeping industry professionals informed of important news, the latest trends and insightful analysis