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Sony Pictures Entertainment two years ago bought Alamo Drafthouse Theaters in a deal that had been unprecedented for a film studio in decades. Now, Sony is getting in early on another theatrical experience that could quite easily be the future for experiential, event cinema.
SPE on Wednesday, June 24 announced a $100 million strategic investment in Cosm, which is an upstart brand of giant, immersive dome theaters that are designed to be so big they effectively feel like the merging of virtual reality and the physical space. SPE Chairman and CEO Ravi Ahuja will join the Cosm Board of Directors as part of the minority stake and will be in on the ground floor of shaping Cosm’s direction while using it to boost their own franchises.
“Cosm sits at the intersection of several trends shaping the future of entertainment. We’ve followed Cosm since before launch and have been impressed with the quality of the experience and the enthusiasm it’s generating with audiences,” said Ahuja. “We’re excited to support Cosm’s next phase of growth and help bring these experiences to more fans around the world.”
Cosm currently has three locations: one in Inglewood, Los Angeles near SoFi Stadium, another in North Dallas at Grandscape, and most recently in downtown Atlanta at Centennial Yards. It’s opening a fourth venue in Detroit this September and a fifth in downtown Cleveland early next year, with other locations domestically and internationally to be announced soon.
The Cosm experience is made to simulate the feeling of being at an event in person. Cosm has really cut its teeth on a lot of live sports and concert films, with the dome shape and stadium seating designed to give the illusion of being on the field or in the front row. But the theaters have also done custom screenings of crowdpleasers like “The Matrix” or the original “Harry Potter” that aim to extend the screen in creative ways.
Sony naturally is about the intersection of entertainment and technology, so taking a big stake in a tech-forward theater chain feels like its bread and butter. But this is also naturally a way for Sony to get more of its own franchises into those spaces and maybe even some of its new movies down the road. An SPE insider says everything is on the table, including with music, interactive, games, game shows, and other commercial opportunities.
The best comp to Cosm today might be something like Sphere in Las Vegas, a massive, immersive experience that’s meant to be cinematic but is entirely unique in scope. The Sphere though is investing millions to design an experience around concerts or a classic film like “The Wizard of Oz” that quite literally only fits that space, and Cosm operates on a far different level and business model.
With the acquisition of Alamo, the value of buying that theater in particular over another theater chain (your mileage may vary in terms of how that acquisition has been going) was because it has a distinctive brand and it’s a different experience compared to what you get at another movie theater. The regular patrons value the programming and the rules and attention to detail beyond just the food or the other amenities.
Cosm doesn’t have that brand recognition yet, but with places like Sphere and other studios emphasizing an experiential, event occasion to get people out of the house, SPE believes Cosm has the potential long term to feel very different compared to other theaters and to be that next wave of theatrical moviegoing. And if they can get in now before it grows to 20, 30, or 50 venues, all the better.
“Sony Pictures shares our passion for innovation and the future of the fan experience, and this investment represents that,” added Cosm President and CEO Jeb Terry. “We will use this capital to fuel Cosm’s growth as we expand our venue network and advance our technology initiatives across both Sports and Entertainment. Sony is one of the most storied technology and entertainment companies in the world with IP spanning across films, TV, music, and games. Together, we’re positioned to bring more of the world’s most iconic IP to life in Shared Reality as we continue to super serve our fans around the world.”
Goldman Sachs & Co. LLC and Allen & Company LLC served as Cosm’s financial advisors.
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