A cinema in downtown Toronto had to cancel showings of a new film after the distributor unexpectedly withdrew access. The Carlton had already sold tickets for the first week of screenings of ‘Tony,’ a film by Canadian director Matt Johnson, when it received notification that distributor A24 would no longer provide the film.
Stefan Kern, director of operations for Imagine Cinemas, which owns the Carlton, stated that the film was pulled due to a clearance issue. This issue typically arises when another theatre is already showing the film in close geographical proximity, leading the distributor to withhold access to other cinemas.
There has been longstanding discontent among independent theatres regarding the unofficial ‘zone system’ in Canada, where distributors grant exclusive access to only one theatre in a specific area for a new release.
According to Sonya Yokota William, director of the Network of Independent Canadian Exhibitors, the zone system originated in the era when studios produced limited film prints, creating competition among theatres to secure early access. However, this practice has persisted, primarily benefiting Cineplex, which dominates the Canadian box office revenue.
Yokota William highlighted the market concentration of Cineplex, which influences distributors’ decisions on which theatres to prioritize for new releases. A survey conducted in 2024 among independent cinemas revealed that more than half had to wait for nearby Cineplex theatres to finish a new release run before gaining permission to screen it.
Cineplex declined to comment on the zone system or the cancellation of the ‘Tony’ screenings at the Carlton, emphasizing that film distributors determine where to exhibit their films. Currently, the movie is being shown at two Cineplex locations near the Carlton.
A24 did not respond to inquiries about why they initially promised access to ‘Tony’ at the Carlton or the reason for retracting the offer. Kern refrained from implicating Cineplex in the film’s cancellation, urging patrons to address concerns to A24, director Matt Johnson, or the Competition Bureau regarding unfair business practices in Canadian theatrical distribution.
The Competition Bureau stated that it has not issued any guidance on theatrical distribution in Canada and did not confirm any reviews related to the zone system. Yokota William hopes that raising awareness about this practice will lead to its eventual cessation, calling for collective action from filmmakers, producers, funders, and government entities.
