Muhammad Amanullah | August 31, 2026
A Toronto cinema has cancelled a scheduled screening of a new Canadian film after the movie’s distributor unexpectedly withdrew permission to supply the film to the theatre, raising fresh questions about the long-standing “zone system” in Canada’s cinema industry.
The Carlton Cinema in downtown Toronto had already sold tickets for “Tony,” a new film directed by Canadian filmmaker Matt Johnson. However, distributor A24 later reversed its decision and declined to provide the film to the cinema.
Why Was the Film Withdrawn?
According to Stephen Kern, director of operations at Imagine Cinemas, which owns Carlton Cinema, the distributor said the film was being withdrawn because of a “clearance issue.”
In the film industry, clearance can refer to situations where another cinema in the same geographical area is already showing the movie, preventing another nearby theatre from screening it at the same time.
Kern said the cancellation was particularly frustrating because customers had already purchased tickets for the screening.
Third Film Cancelled
Kern said this is not the first time Carlton Cinema has faced such a situation.
According to him, the theatre has recently been prevented from showing three different films because of similar circumstances.
The issue has renewed concerns among independent Canadian cinemas about their ability to compete with large theatre chains when major new releases become available.
What Is the Cinema “Zone System”?
The practice is commonly referred to as the “zone system.”
Under the system, a distributor may give one cinema or theatre chain priority to show a new film within a particular geographical area, while other nearby cinemas may have to wait before they can screen the same movie.
Sonya Yokota-Williams, director of the Network of Independent Canadian Exhibitors, said the system has roots going back several decades.
She explained that the practice developed when movie prints were limited and theatre owners competed to secure access to new releases.
Although movies are now distributed digitally, concerns remain that similar restrictions continue to affect independent cinemas.
Concerns About Cineplex’s Market Power
Yokota-Williams argues that the current system can particularly benefit Cineplex, Canada’s largest cinema chain.
According to the organization, Cineplex accounts for a significant share of Canada’s box-office revenue and operates more than half of the country’s approximately 2,700 cinema screens.
Independent exhibitors say the company’s large presence gives it considerable influence within the Canadian theatrical exhibition market.
Independent Cinemas Facing Challenges
A 2024 survey conducted by an organization representing independent cinemas found that more than half of independent theatre operators said they had been required to wait until a nearby Cineplex finished its full theatrical run of a new movie before they were allowed to show it.
Independent exhibitors argue that such arrangements can make it difficult for smaller cinemas to compete.
For independent theatres, timing is particularly important because a new film can attract its largest audience during the first few weeks of release.
Cineplex Puts Responsibility on Distributors
Cineplex declined to comment directly on the cancellation of “Tony” at Carlton Cinema or on the broader allegations surrounding the zone system.
The company said that decisions about where a movie will be released are made by film distributors.
At the time of the dispute, “Tony” was being shown at two Cineplex locations near Carlton Cinema.
A24 Did Not Explain the Decision
A24 did not respond to questions about why it initially allowed Carlton Cinema to schedule “Tony” before later withdrawing the film.
The distributor was also asked to explain the specific reason for the change, but no response was provided.
Imagine Cinemas also avoided directly naming Cineplex in its statement about the cancelled screening.
Customers Urged to Contact Competition Authorities
Imagine Cinemas encouraged customers who were affected by the cancellation to express their concerns to A24, filmmaker Matt Johnson and Canada’s Competition Bureau.
The cinema said the situation highlights concerns about potentially unfair business practices in the way films are distributed to Canadian theatres.
The Competition Bureau has not confirmed whether it is currently investigating the zone system or the specific cancellation involving Carlton Cinema.
Calls for Government Action
Yokota-Williams said filmmakers, producers, funding organizations and governments should pay greater attention to the issue.
She argued that greater awareness is needed around how theatrical distribution works in Canada and how long-standing industry practices may affect independent cinemas.
According to independent exhibitors, changes could help create a more competitive environment where smaller theatres have greater opportunities to screen Canadian and international films.
What the Dispute Means for Toronto’s Independent Cinemas
The cancellation of “Tony” at Carlton Cinema has highlighted a broader issue facing independent theatres across Canada.
While distributors have the right to determine where and when their films are released, independent cinema operators argue that restrictive geographical arrangements can make it difficult for smaller theatres to compete with large chains.
The debate also raises questions about whether a system developed decades ago remains appropriate in an era when films can be distributed digitally to cinemas across the country.
For Toronto’s independent cinemas, the dispute could become another catalyst for discussions about competition, film distribution and the future of Canada’s theatrical movie industry.
