Toronto Cinema's Secret 'Zone' System Exposed
· diy
The Dark Corners of the Canadian Cinema Market
The cancellation of screenings for Matt Johnson’s “Tony” at Toronto’s Carlton cinema has exposed a decades-old practice in Canada: the unofficial zone system. This unwritten rule allows film distributors to grant exclusive access to new releases only to one theatre in each area, stifling competition and limiting opportunities for independent cinemas.
This system is a relic of the past, when studios produced limited film prints and theatres had to compete for them. However, as Sonya Yokota William, director of the Network of Independent Canadian Exhibitors, notes, this practice persisted even after the digital era began. Today, it predominantly benefits Cineplex, which controls 75% of Canada’s box office revenue and operates over half of the country’s movie screens.
Independent theatres like the Carlton are forced to wait for their Cineplex counterparts to get a complete run of a new release before they’re given permission to play it. This not only frustrates smaller cinemas but also economically cripples them, as they struggle to stay afloat in an industry dominated by a single giant.
Defenders of the zone system argue that distributors prioritize their biggest customer – Cineplex – for good business sense. However, this reasoning ignores the broader implications of this practice. By concentrating market share and limiting competition, Canada’s cinematic landscape is effectively handed over to a few behemoths, stifling innovation and creativity in the process.
Cineplex’s silence on the issue is telling, with their stance that film distributors hold all the power highlighting their own complicity in perpetuating this system. The question remains: Why should a single company wield such influence over an entire industry?
The Canadian government has yet to confirm whether they’re reviewing complaints related to the zone system, but raising awareness about this practice may be enough to bring it to an end. A concerted effort from all stakeholders – including government, distributors, and exhibitors – will be necessary to create a more equitable distribution system.
Canada must confront the reality of its cinema market: either continue down the path of limited competition and stifled innovation or strive for a more balanced system that promotes diversity and creativity in film exhibition.
Reader Views
- TWThe Workshop Desk · editorial
While the zone system's impact on independent cinemas is well-documented, it's equally crucial to examine its effects on local filmmakers and their audiences. By limiting competition, Cineplex gains a stranglehold not just on box office revenue but also on what stories are told and shown in Canadian cinema. The absence of innovative, niche, or regionally relevant content can lead to a homogenization of the cinematic landscape, ultimately stifling the very creative forces that once made Canada's film industry so distinctive.
- BWBo W. · carpenter
It's high time someone shed light on the zone system in Canadian cinema. I've been a carpenter by trade for years, but running my own small video rental shop on the side gave me insight into how this works. What worries me is that even if independent theatres like the Carlton do get permission to screen a new release, they often have to wait weeks or even months after it's opened at Cineplex, which severely limits their ability to attract audiences. This isn't just about fairness – it's about survival for these smaller operators.
- DHDale H. · weekend handyperson
The zone system's just a euphemism for monopoly. It's not about distributors prioritizing their biggest customer - it's about Cineplex buying influence and silencing competition. We're not talking about innovation being stifled in some abstract sense; we're talking about small, community-driven cinemas that can't afford to wait months for new releases, while Cineplex gets to play them day one. The real question is why we let this happen.