A cinema in downtown Toronto had to scrap screenings of a new movie after the film’s distributor abruptly withdrew access. The Carlton had already sold tickets for the first week of showings of ‘Tony,’ a fresh film by Canadian filmmaker Matt Johnson, before being informed that A24, the distributor, would no longer provide the film.
Stefan Kern, the operations director for Imagine Cinemas, which owns the Carlton, revealed that the film was pulled due to a clearance issue. Clearance, Kern explained, typically involves another theater showing the film in close proximity geographically, causing the distributor to prioritize that theater over others.
Independent theaters have raised concerns about Canada’s long-standing ‘zone system,’ where distributors grant exclusive access to a single theater in a particular area for new releases.
According to Sonya Yokota William, head of the Network of Independent Canadian Exhibitors, the zone system originated in the pre-digital era when studios produced limited film prints, leading theaters to compete for early access. This practice, she noted, now predominantly benefits Cineplex, which holds a significant share of the country’s box office revenue and owns over half of Canada’s movie screens.
Yokota William pointed out that Cineplex’s market dominance influences distributors to prioritize the theater chain for new releases, describing it as a business decision to keep their top customer satisfied.
In a survey conducted in 2024 by her organization among independent cinemas, more than half reported having to wait for a nearby Cineplex to finish showing a new film before being allowed to screen it.
Cineplex declined to comment on the zone system or the cancellation of ‘Tony’ screenings at the Carlton, stating that film distributors determine where their movies are shown. Currently, the movie is being screened at two nearby Cineplex locations.
A24 did not respond to inquiries about why they initially granted access to the Carlton for ‘Tony’ or what led to the film being pulled.
Kern refrained from naming Cineplex in interviews or press releases but encouraged patrons to voice their concerns to A24, director Matt Johnson, or the Competition Bureau to address potential unfair business practices in Canadian theatrical distribution.
The Competition Bureau did not confirm any review related to complaints about the zone system and stated it had not issued guidance on theatrical distribution in Canada. Yokota William emphasized the importance of raising awareness about the zone system and hopes that collective advocacy will lead to its discontinuation by filmmakers, producers, funders, and government involvement.