How to support Canada’s independent cinemas
- Executive Summary
- What is the independent cinema sector?
- Canadian film needs Canadian cinemas
- The shift back to theatrical
- What independent cinemas bring to Canadian communities
- Independents need support with: Cineplex and ‘zones’
- Independents need support with: ‘Clean runs’ from studios
- Independents need support with: Capacity to grow
- Act now: Write a letter to support your favourite independent cinema!
Cineplex Dominance
Cineplex represents 75% of Canadian theatrical box office market share.
This is an outsized slice of the pie, especially when compared to the largest exhibitors in Australia (28.7%), the UK (24%) and the US (26%).
Canadaland Commons host Arshy Mann
February 22, 2023, episode
Cineplex is easily the most dominant company of any that we’ve covered on this season [focused on monopolies in Canada]. How exactly does Cineplex use that dominance?
For further insight, please listen to Episode #15 of the Canadaland Commons Monopoly podcast.
What are Zones, Anyway?
Many independent cinemas have second-class access to new movies: they must wait for Cineplex to finish playing a new release before they are allowed to show it.
This is enforced by what is called the ‘zone’ system. Independent cinemas need to wait until a Cineplex in a geographic area called a ‘zone’ has ended its run of a film.
There is no map of zones available, even to the independent cinemas who are subject to their restrictions. Many independent cinemas report that the Cineplex they have to clear will change between films. Below is a Toronto map based on the best guesses of independent cinemas:
Zones restrictions keep independent cinemas from playing films, but two Cineplex locations in close proximity can play a film at the same time. For example, zones do not impact Yonge-Dundas and Scotiabank Theatre in downtown Toronto, despite being only approximately 1 kilometre apart.
Zone restrictions seriously impact 67% of NICE members.
– 2022 NICE survey
Zones are inconsistently applied—even for the same cinema over the course of just a few titles—and don’t correspond to any official system.
Anonymous head of Canadian distribution company
Canadaland Commons, February 22, 2023 episode
Cineplex acts as an absolute monopoly. Cineplex’s claims that film distributors act independently is for all intents and purposes – false. Because of Cineplex’s enormous market share, no independent film distribution company can afford to do anything that Cineplex might perceive as going against its interests.
Cineplex as Distributor
On January 5, 2023, Lionsgate announced a distribution agreement with Cineplex Pictures to bring the studio’s 2023 slate to Canadian cinemas, including Cineplex venues and those operated by its competitors.
Impact
The current marketplace limits independent cinemas’ ability to succeed by slowing down when they can open a film, the selection available, and the cost incurred.
The current marketplace weakens Canadian film distributors by limiting their ability to acquire, distribute and profit from their films.
Anonymous head of Canadian distribution company
Canadaland Commons, February 22, 2023 episode
If they make them angry enough, Cineplex can find ways to punish distributors. It’s never explicitly framed that way, but a distribution company could find that their movies aren’t getting enough screens at Cineplex theatres, or they’ll show a film at a theatre where it’s unlikely to get the right audience, or they’ll refuse to play trailers for their films before big releases.
Boycotts are not possible without significantly impacting when a consumer can see a film.
A smaller selection of films are available for Canadians to see on the big screen. Canadian films are not reaching Canadian audiences.
Consumers are subject to fees as they do not have an active choice in where to see a film. Cineplex charges $1.50 per ticket to book online. This fee is separate from the ticket price, and thus will not be split with a distributor. Industry experts hypothesize that this is a junk fee; an additional fee that Cineplex is enabled to charge because of their market dominance.
Solution
Eliminate zones, allowing independent cinemas to book films at the same time as chains.
Act now: Write a letter to support your favourite independent cinema!
How to support Canada’s independent cinemas
- Executive Summary
- What is the independent cinema sector?
- Canadian film needs Canadian cinemas
- The shift back to theatrical
- What independent cinemas bring to Canadian communities
- Independents need support with: Cineplex and ‘zones’
- Independents need support with: ‘Clean runs’ from studios
- Independents need support with: Capacity to grow
- Act now: Write a letter to support your favourite independent cinema!
