A cinema in downtown Toronto had to halt screenings of a new movie as the film’s distributor suddenly withdrew access, citing a longstanding Canadian practice that restricts which theaters can premiere movies first. The Carlton had already sold tickets for the initial week of screenings of ‘Tony,’ a new film by Canadian filmmaker Matt Johnson when it was informed that distributor A24 would no longer provide the film. Stefan Kern, the director of operations for Imagine Cinemas, which owns the Carlton, revealed that the film was pulled due to a clearance issue. This issue arises when another theater in close geographic proximity is screening the same film, leading the distributor to withhold it from other cinemas.
Independent theaters have criticized the unofficial ‘zone system’ in Canada, where distributors grant exclusive access to a single theater in a specific area for a new release. According to Sonya Yokota William, the director of the Network of Independent Canadian Exhibitors, this system originated in the pre-digital era when studios produced limited film prints, causing theaters to compete for early access. However, the practice has persisted, predominantly benefiting Cineplex, which dominates about 75% of the Canadian box office revenue and owns more than half of the country’s movie screens.
Yokota William noted that Cineplex’s market dominance skews distributor incentives towards prioritizing the cinema giant for new releases, stating that it is logical for distributors to prioritize their top customer. A survey conducted in 2024 by her organization among independent cinemas revealed that over half had to wait for nearby Cineplex theaters to finish showing a new release before being allowed to screen it.
Cineplex declined to comment on the zone system or the cancellation of ‘Tony’ screenings at the Carlton, emphasizing that film distributors determine where their movies are shown. Currently, the movie is being screened at two Cineplex locations near the Carlton. A24 did not respond to queries regarding why they initially promised the Carlton access to ‘Tony’ or the reason for withdrawing the film.
Kern refrained from mentioning Cineplex in his statements, urging patrons to address their concerns to A24, Matt Johnson, or the Competition Bureau to report unfair business practices 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 advocates for greater awareness of the zone system to prompt action from filmmakers, producers, funders, and the government to potentially bring an end to this practice.