A cinema in downtown Toronto had to cancel screenings of a newly released movie as the film’s distributor withdrew access unexpectedly. The Carlton had already sold tickets for the first week of screenings of ‘Tony,’ a film directed by Matt Johnson, before being informed that A24 would no longer provide the film. Stefan Kern, the director of operations for Imagine Cinemas, which owns the Carlton, mentioned that the film was pulled due to a clearance issue. This issue arises when another theater in close proximity is already showing the film, leading the distributor to withhold it from additional theaters.
The longstanding ‘zone system’ in Canada, where only one theater in an area gets access to a new release, has been a point of contention for independent theaters. Sonya Yokota William, the director of the Network of Independent Canadian Exhibitors, explained that this practice originated in an era when studios produced limited film prints, forcing theaters to compete for early access. She highlighted that the system tends to favor Cineplex, which dominates around 75% of Canada’s box office revenue and owns more than half of the country’s movie screens. This market concentration has influenced distributors’ decisions on prioritizing theaters for new releases, often leaning towards keeping Cineplex satisfied.
A 2024 survey by Yokota William’s organization revealed that more than half of independent cinemas had to wait for nearby Cineplex theaters to complete a run of a new release before gaining permission to screen it. This practice has made it challenging for independently owned theaters to survive, as highlighted by Vancouver’s Rio Theatre in a 2020 petition against the zone system.
While Cineplex declined to comment on the zone system or the cancellation of ‘Tony’ screenings at the Carlton, they emphasized that film distributors have the authority to choose where to showcase their films. Currently, the movie is being shown at two Cineplex locations near the Carlton. A24 did not respond to queries regarding why they initially promised access to the Carlton for ‘Tony’ or what led to the film’s withdrawal.
Kern refrained from mentioning Cineplex directly in interviews or releases following the ‘Tony’ cancellations. Instead, Imagine Cinemas encouraged patrons to address concerns to A24, film director Matt Johnson, or the Competition Bureau if they believed unfair business practices were at play in theatrical distribution in Canada. The Competition Bureau neither confirmed reviewing complaints related to the zone system nor issued any guidance on theatrical distribution in Canada. Yokota William hopes that by shedding light on this practice, stakeholders will collectively push for its end, even if legislative action may not be immediately feasible.