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MOVIES AND MORE

he Alamo Drafthouse Cinemas are not your ordinary movie hous- THE ALAMO es. Rather, think of them as community cultural centers that DRAFTHOUSE Tcelebrate the art of film - in all its many genres - while providing the best food and beverage for their customers and engaging them in CINEMAS unique cinema experiences. Indeed, for the past twenty years, Alamo Drafthouse has finely honed the art of producing large-scale, immer- sive, film-related events all over the in all types of loca- tions - from classic movie palaces to underground caves to mountain retreats. It has even screened Jaws on the water with the audience floating around in inner tubes! “One of the benefits of coming into this business – not being a part of it, but just being a movie fan - is from day one, we decided to do a few things differently,” says , company Founder and CEO, in what can only be characterized as a vast understatement. Beginning with one screen in , in a former parking THE ALAMO DRAFTHOUSE CINEMAS garage, today, the current Alamo Drafthouse system comprises 190 screens in 25 locations across 18 U.S. markets. “Since we’re based in Texas, a lot of our growth, initially, was in Texas – AT A GLANCE we’re in almost every major city,” League says. “But over the last five years we’ve expanded. We have theaters on both coasts. THE ALAMO We opened a theater, last year, in , and the year before DRAFTHOUSE that in . We’re opening in and we’re CINEMAS looking at developments in major cities across the country.” WHAT: A film exhibition company League admits that building a national chain of movie the- with 190 screens in 25 locations aters was not his original plan. “The initial mindset was not across 18 U.S. markets to develop a growth business,” he says. “My wife and I were WHERE: Headquartered in coming off of careers in the sciences and were looking for an Austin, Texas alternative, and we both love movies. And we made kind of WEBSITE: www.drafthouse.com a whimsical decision. On my way to work was an abandoned movie theater, and one day, a ‘For Lease’ sign popped up on it and that was the light bulb moment. We leased that theater

ABOUT MOVING IMAGE TECHNOLOGIES Moving iMage Technologies (MiT) is a manufacturer and integra- master reseller for NEC Digital Cinema products, and is one of tor of purpose-built technology to support a wide variety of enter- the highest volume dealers of BARCO Digital Cinema projectors tainment applications, focusing on motion picture exhibition. MiT worldwide. MiT is also a crucial channel in the distribution and offers a variety of products and services, including custom engi- integration of major cinema brands such as Dolby, QSC, JBL/ neering, systems design, integration, and installation. We provide Crown, USL, GDC, Meyer Sound, and many others. MIT also digital technology solutions for 3-D, Digital Cin- produces its own line of Digital Cinema peripher- ema, and AV integration, and even customized als—automation, bases, lifts, hush boxes, lighting solutions for emerging entertainment technology. fixture/dimmers, operations software, and power management devices-- all made in the U.S.A. Based in Fountain Valley , our 28,000 sq ft facility is home to our corporate offices, engineering, manufacturing, distribution, and Special Venues | MiT operates a special projects integration, as well as service and support divi- division, with a focus on the attention to detail, sions. Our strategic location is augmented by a design & engineering required for single-screen, global network of service partners & OEM man- mission-critical venues. Our clients include uni- ufacturers. versities, museums, performing arts centers, and theme park attractions. MiT also builds & supports screening MiT was founded in 2003, and in just 13 years has grown to be rooms for the most demanding eyes & ears in the movie indus- the world’s largest company of its kind, in sales volume. Since try—postproduction & mastering suites in Hollywood, Guild The- 2008, MiT has been directly involved in film-to-digital conversions aters and executive screening rooms in Beverly Hills, and home of approximately 15,000 theaters globally. MiT operates as the cinemas for A-list directors and producers. THE ALAMO DRAFTHOUSE CINEMAS

that we could grow this We have standards for customer service that everybody lives to be even bigger and, if and breathes by. ... But the personality comes locally. So, we we grow to a certain size, have a creative manager in each market. We want each the- we could actually make a significant impact on ater that we build to be a community gathering point. And the this industry – one that only way you can do that is to be somewhat local.” I dearly love. So, as we TIM LEAGUE grow bigger, it allows us COMPANY FOUNDER AND CEO to further our mission – to re-imagine going to the movies and making it fun, again.” While having fun at an is key, League WE SALUTE stresses that for the true cinephile, watching film ALAMO DRAFTHOUSE is a serious pursuit. And for their excellence in his theaters make sure presentation, creative programming and got into the exhibition business. It wasn’t until much that they can do it, undis- and customer service. later that it developed into a growth business – it was turbed. “We have a pretty very much a mom-and-pop business.” legendary no-talking, We are proud to be your partner in League says he wasn’t really planning to open a sec- no-texting policy. We like 4K presentation technology. ond theater, either. “But there was this property owner to keep the auditorium who gave me a call and said, ‘We’ve got somebody who safe for true movie fans,” does your concept moving into town, but you guys are he says. “And it’s not just local and we love what you do. If you want to take this an older generation that location, you can have it. But I have to know by the end appreciates the quiet, al- of the week and you can’t change the lease, at all.’ So, though it is generally the thankfully, it was a kind lease and the moment that we younger generation that opened up our second theater it set a lot of things in are texting or talking. But motion. We couldn’t be everywhere at once, so we devel- we found that if you lay oped a team and growth opportunities presented them- © 2017 Sony Electronics Inc. All rights reserved. Reproduction in whole or in part without written permission is prohibited. Sony, the Sony logo and Sony Digital Cinema are trademarks of Sony. down the rules and the selves to us. After opening our fourth theater, we realized social contract in a seri- THE ALAMO DRAFTHOUSE CINEMAS

ous way, that the real movie fans, regardless of age, will gravitate, and 80 percent of those are local,” League says. “In , they’re a hun- make this their movie theater of choice. I hope that courteous movie dred percent local, on tap. That’s one of our brand pillars – to always watching is not just a thing of a bygone era.” In an attempt to cater to supporting local breweries.” that younger generation of cinephiles, League created a special pro- And finally, there are the films. At an Alamo Drafthouse Cinema, any- gram for them. “If you are in high school and you fill out a questionnaire thing on celluloid has a chance of turning up on the screen.”We have and understand the policies of no texting, no talking in the theater, then one foot in the art house and one foot in the commercial world,” says you can see every movie that we show for five bucks,” he adds. League. “We show classic films, foreign films, documentaries, and indie Another thing that differentiates Alamo Drafthouse Cinemas from the films, and that allows us to be more profitable by playing a wider range larger chains is its no-ads policy. “We don’t show ads before movies,” of movies. So, right now, for example, we’re playing Star Wars; we’re League declares. “You’re paying ten to fifteen dollars as the premium for playing La La Land; we’re playing Jackie. But we’re also playing Elle, a movie; you shouldn’t have to sit through ads. So, we’ve always said ‘No’ which just won the Golden Globe for Best Foreign Language Film. We to that revenue stream. This isn’t a commodity business for us.” make it a point to have a pretty diverse slate of films at the theater at And then, of course, there’s the food and beverages. Every Alamo all times.” Drafthouse Cinema serves beer, wine and freshly-made, award-winning League adds that Alamo Drafthouse Cinemas is also committed to the cuisine, delivered right to a patron’s seat. More often than not, the beer preservation of 33mm film and that most locations have 35mm pro- is from a local brewery. “We average about 32 beers on tap and at least jection for repertory screenings. In addition, the company founded the THE ALAMO DRAFTHOUSE CINEMAS

Although we live in a time when many people prefer to stay home to watch films on Netflix or cable TV, League does not see those outlets as his main competition. “We’re com- peting against the ‘go out’ options,” he says. “We’re competing against the best of the best in ‘out-of-home entertainment’ and we have to be world class in our offerings. That’s what I’m always focused on. I think it’s all the more important for us to understand that every time someone makes the investment in time and money to leave the home, they want to have a special experience. So our hope is that we can create a very special memory for people, which takes work and effort. But as long as we can be an affordable great experience against the American Genre Film Archive (AGFA) in 2009, a non-profit organization focused on the outlaw exploitation movies that were produced from the 1960s through the 2000s. The collection contains over 6,000, 35mm prints and trailers. League says that while all 25 Alamo Draft- house locations are given a certain level of creative freedom, they also must strictly adhere to company values and operating principles. “It’s very decentralized,” he explains. “We have standards for customer service that everybody lives and breathes by, and we do a lot of mon- itoring, and training, and coaching from the head office. But the personality comes locally. So, we have a creative manager in each mar- ket. We want each theater that we build to be a community gathering point. And the only way you can do that is to be somewhat local.” THE ALAMO DRAFTHOUSE CINEMAS

multi-unit restaurant experience and a love PREFERRED VENDORS of cinema, and a belief in what we’re trying n Rydt Entertainment Systems to do with the brand.” www. movingimagetech.com/rydt Something that Alamo Drafthouse does Rydt Entertainment Systems is a division of Moving Image do with its brand, and a lot better than Technologies, a California-based manufacturer and high-level its competitors, is staying in touch with distributor of standard and custom-designed technology and equipment to the motion picture exhibition industry. Rydt its patrons. “We have upwards of 900,000 Entertainment provides design, procurement, installation, and Facebook followers; about a million email service to the creative and production communities for screen- addresses; and a big profile on all social ing, digital intermediate, and other critical viewing rooms. Rydt also provides full FF&E (Furniture, Fixtures, and Equip- channels,” says League. This large, virtual ment) services to commercial cinema exhibitors, including the audience, he believes, has given the brand procurement of seats, lighting, acoustical treatments, screens, projection, and sound, as well as design consultation and clout and has, in fact, propelled it to be- installation services. come a promotional partner with some of the big movie studios. “We’ll come up with n Sony Professional Solutions of America www.pro.sony.com/bbsc/ssr/home.do promotional ideas that we’ll launch across our system and that we hope will generate A business group within Sony Electronics, Sony Professional Solutions of America develops and manufactures video and au- national level PR.” dio technologies for a range of professional applications. These Once a single-screen movie theater in a include high-definition broadcast television and motion picture run-down warehouse district in Texas, today, production, event videography, ENG/EFP, digital cinematogra- idea of going to a club, or going to see comedy, phy, digital cinema, videoconferencing, medical, visual imaging, the Alamo Drafthouse Cinemas has grown digital signage, and remote system diagnostics and monitoring, or going to a restaurant, then we’re fine.” Per- into a nationwide and nationally-acclaimed as well as IP surveillance and security. These technologies are haps that’s yet another understatement. In fact, also used by professionals in a range of market segments in- chain of film exhibition venues. But founder, in terms of expansion, Alamo Drafthouse Cin- cluding houses of worship, government, healthcare, education, Tim League, never forgets what prompted him and hospitality, among others. emas outpaced the growth of the general film and his wife, Karrie, to make that “whimsical exhibition industry by four percent, last year, and decision” back in 1997. “I’m actually rather Leagues suggests it’s his intention to do that ev- old fashioned when it comes to movies,” he ery year. “Our goal at the Alamo: no matter what reveals. “I want exceptional presentation, so the industry does, we want to outpace it.” there are always technological advancements But that doesn’t mean that he is ready to open in terms of sound and picture, and we’re mak- more Drafthouse Cinemas, willy-nilly. “The goal ing a significant investment into technology. is not to have an overabundance of franchise But when the lights go off and the picture partners,” he avers. “It takes a pretty significant comes on, and the sound comes on, I want capital outlay and you have to believe in what you to be lost in the movie experience. And I we’re doing. So, we’re looking for people with big, hope that doesn’t change too much.” WWW.DRAFTHOUSE.COM

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