The 'Zone' Squeeze: How Archaic Distribution Rules are Killing Independent Cinema
AI-generated image · Bay Street Wire
A24's decision to pull a new release from the Carlton cinema exposes a decades-old system that privileges industry giants over local screens.
OPINION: There is nothing more frustrating for a local movie-goer than buying a ticket for a highly anticipated film, only to have the screening vanish because of a corporate power play. As CBC Toronto first reported, this is exactly what happened at the Carlton, a downtown Toronto cinema, when distributor A24 abruptly withdrew access to the new film 'Tony,' directed by Canadian filmmaker Matt Johnson.
CBC Toronto reports that the Carlton had already sold tickets for the movie's first week of screenings when A24 withdrew the film. Stefan Kern, director of operations for Imagine Cinemas—the owner of the Carlton—told CBC Toronto that the distributor cited a "clearance issue." In plain English, this refers to the "zone system," an unofficial, decades-old practice where distributors limit which theaters can show a movie based on geographic proximity.
As Sonya Yokota William, director of the Network of Independent Canadian Exhibitors, explained to CBC Toronto, this system is a relic of the pre-digital era when limited film prints forced theaters to compete for access. In today's digital world, the practice persists, and it serves one primary purpose: protecting the biggest player in the room. Yokota William notes that this system predominantly privileges Cineplex, a company that controls more than half of Canada's roughly 2,700 movie screens and captures about 75 percent of the country's box office revenue.
When a distributor wants to keep their largest customer happy, the independent shops get squeezed. A 2024 survey conducted by the Network of Independent Canadian Exhibitors found that over half of its member cinemas had to wait for a nearby Cineplex to finish its run of a new release before they were allowed to play it. Vancouver's Rio Theatre previously described this in a 2020 petition as an "underhanded business practice" that threatens the survival of independent theaters.
When questioned by CBC Toronto, Cineplex declined to comment on the zone system or the specific cancellation of 'Tony' at the Carlton, stating instead that distributors decide where films are played. At the moment, 'Tony' is showing at two nearby Cineplex theaters. A24 did not respond to CBC Toronto's inquiries regarding why they initially promised the Carlton access before reversing the decision.
For the small business owner, this is a chokehold. Kern told CBC Toronto that 'Tony' was the third film recently pulled from their theater. While Imagine Cinemas is urging patrons to contact A24, Matt Johnson, or the Competition Bureau to complain about unfair business practices, the regulatory response has been silent. The Competition Bureau told CBC Toronto it has never issued guidance on theatrical distribution and would not confirm if it is reviewing complaints regarding the zone system.
It is a slap in the face to the community. By prioritizing market concentration over cinematic diversity, the industry is ensuring that the only way to see a new release is through a corporate monolith. If we want independent cinema to survive, the 'zone' needs to go.