Dimming Lights: Canada’s indie cinemas fight for survival against Hollywood's might

The Royal Theatre in Trail, B.C., exemplifies the struggles many indie theatres are grappling with. Once a bustling cinema operating 363 days a year, it's now struggling to maintain even its Sunday and Monday hours. Owner Lisa Milne highlights the dual challenges the cinema faces: "Things need to be looked at differently for us to be able to not just thrive, but survive. The system is broken.”

A Changing Landscape for Small-Scale Cinemas

These local theatres are contending with factors specific to the film industry, such as Hollywood strikes delaying new releases and studios pivoting to focus on their streaming services. Simultaneously, broader economic challenges, like inflation and rising living costs, add to the strain. 

This compounded pressure means several independent Canadian cinemas, many housed in historical buildings and serving as essential community centers, are at risk of shutting their doors.

Also Read: From The Walking Dead to real-life battles: Erik Jensen's fight with stage IV cancer 

Indie Theatres: On the Brink of Crisis

Last week, a telling report from the Network of Independent Cinema Exhibitors (NICE) painted a stark picture: Canada's indie theatres, which operate outside the shadow of giants like Cineplex CGX-T and Landmark, are in a "state of crisis."

Over two dozen exhibitors reached out to NICE with distress signals. The challenges ranged from inability to repay Canada Emergency Business Account loans to feeling sidelined due to "unfair zone restrictions," which determine the films a cinema can showcase based on their location.

Also Read: Decades in, Mickey Rourke still unimpressed: labels Cruise 'Irrelevant' in 2023 revelations! 

But the most daunting issue stems from the studios and distributors themselves. Historically, the box-office revenue was split evenly between theatres and distributors, providing some flexibility for exhibitors. Many theatre owners find themselves in tight spots with box-office splits skewed at up to 64 percent in favor of studios. Furthermore, studios increasingly insist on “clean run” arrangements, compelling theatres to screen specific titles for extended periods exclusively.

Such conditions, especially if a movie fails to resonate with audiences, put cinemas in precarious positions, potentially playing to nearly empty houses. 

For Canadian independent cinemas, the path forward is uncertain. However, the hope remains that a balanced approach can be found, allowing these vital community hubs to continue their legacy.

(Several parts of the text in this article, including the title, were generated with the help of an AI tool.)