Independent film exhibitors in Canada say they are struggling to stay afloat and need immediate funding to keep doors open, according to a report from the Network of Independent Canadian Exhibitors (NICE).

The report is based on a nationwide survey aimed at assessing the state of independent film exhibition in the country. Approximately 70% of the indie exhibitors that responded said they failed to meet their financial targets, and 60% operated at a loss at end of the most recent financial year.

To prevent imminent closures, the respondents said they would require an investment of at least $50,000 annually for a three-year period. Nearly 66% called for an increase in public funding.

The survey was available to all 181 members of NICE, but only 67 independent film exhibitors participated. The report notes, however, that “with 65 of the respondents being year-round, brick-and-mortar independent cinemas, this is a nationally representative sample with a high degree of statistical significance.” The respondents include one seasonal exhibitor and one drive-in cinema. The study was conducted from Dec. 19, 2023 to Feb. 9.

The respondents identified several roadblocks to their recovery, but an overwhelming majority (81%) said they are impacted by “clean runs” — where a studio requires a cinema to host their film for up to four weeks, consecutively, at all showtimes. This particularly impacts cinemas that operate with a single screen.

NICE recommended the elimination of this practice as one of the policy solutions that would reduce the need for immediate financial support in the long term. Nearly 62% of the respondents indicated that this would be paradigm-shifting.

Another policy solution would be the eradication of zones, which represent geographic areas where exhibitors operate. The existence of zones creates a scenario where one exhibitor has to wait for another exhibitor to finish playing a film before they are allowed to show it.

“Zones often operate in favour of Cineplex locations,” claimed the report. “Cineplex had 74% box office market share in 2023 and operates 158 cinemas across Canada: less than half the number of independents.”

More than 50% of respondents said they have to wait for Cineplex to finish playing a new release before they are allowed to show it. Nearly 40% said they are subject to this restriction from multiple Cineplex locations. The same percentage of respondents indicated that the lifting of these zones would be very impactful to their business.

Cineplex has not responded to a request for comment as of press time.

NICE also called for a diversification of funding, with Telefilm Canada cited as most often being the only public funder. Exhibitors can apply for a maximum of $5,000 per theatre per year through Telefilm’s Theatrical Exhibition Program, and a maximum of $10,000 per corporate group.

The report said incentives for indie exhibitors would also mean better support to Canadian films, which these cinemas provide a platform for.

The survey respondents screened a total of 936 Canadian films in 2023, with some screening up to 89 titles. An average of 8% of the total number of films screened per independent exhibitor in 2023 were Canadian, according to the report.

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