Carlton Cinema loses 'Tony' screenings after decades-old distributor zone practice

The Carlton Cinema had already sold tickets for screenings of 'Tony,' a new film by Canadian director Matt Johnson, when distributor A24 suddenly withdrew access—citing a decades-old, unofficial practice that limits which theatres can show movies first.

Stefan Kern, director of operations for Imagine Cinemas, which owns the Carlton, said the theatre received no advance warning. "They ended up telling us that they were pulling the film because of a clearance issue," Kern explained. A clearance issue, he noted, typically stems from another theatre showing the film nearby—the distributor holds it back from competitors in that geographic area.

This is not new for the Carlton. "This was the third film that we've had recently that was pulled from us," Kern said.

The zone system traces back to the pre-digital era, when studios produced limited film prints and theatres had to compete for first access. The practice has outlasted its original purpose—digital distribution would allow simultaneous access—but it persists, shaped by market concentration. Cineplex holds roughly 75 per cent of Canada's box office revenue and more than half of the country's roughly 2,700 movie screens.

According to Sonya Yokota William, director of the Network of Independent Canadian Exhibitors, Cineplex's dominance has "twisted the incentives" for film distributors. "In some ways it's like it only makes good business sense for you to keep your number one customer happy," she said. In a 2024 survey of independent cinemas, more than half reported waiting for a nearby Cineplex to complete its run of a new release before receiving permission to play it.

Cineplex declined to address the zone system directly, writing that "it is up to film distributors to decide where they play their films." A24 did not respond to questions about why it initially promised the Carlton access to 'Tony' or what prompted the reversal. The film is currently playing at two Cineplex locations near the Carlton.

Kern encouraged patrons to direct complaints to A24, director Matt Johnson, or the Competition Bureau to report what he calls unfair business practices in theatrical distribution.