The Network of Independent Canadian Exhibitors (NICE) is urging major film studios to abandon "full-show commitments" that restrict the programming of domestic productions. According to a report released Monday, these studio requirements often force small-town, single-screen theatres to dedicate their entire inventory to a single blockbuster, leaving no room for Canadian cinema.
The 23.8% hurdle for domestic films
A recent study conducted by NICE examined 16 Ontario cinemas to identify why Canadian productions are frequently left off theatre schedules. the researchers found that "full-show commitments"—arrangements where a single film occupies every time-slot on a screen for up to four weeks—were a factor in 44 out of 185 instances where a Canadian film was not booked. This represents approximately 23.8 per cent of those decisions, according to the report.
The impact of these contracts is disproportionately felt by smaller exhibitors. NICE reported that cinemas operating without these rigid full-show commitments booked Canadian titles at four times the rate of those operating under such arrangements. For a single-screen independent cinema, accepting a blockbuster's terms can mean losing almost all programming flexibility and the ability to respond to local audience tastes.
A 40% decline in Canadian box office revenue
The struggle for screen time comes at a time of significant financial contraction for the domestic industry. Data from Telefilm Canada shows that Canadian films generated $13.9 million in box office revenue in 2025, a sharp decline of more than 40 per cent from the $23.5 million recorded in 2024. As a result, the share of the total Canadian box office held by domestic films dropped from 2.8 per cent in 2024 to just 1.7 per cent last year.
Independent exhibitors are the primary drivers of this sector, delivering approximately 60 per cent of the total box office for Canadian films in 2025. Despite this importance, high-performing local titles are struggling to find footing. In the study, the highest-ranking Canadian film, Nirvanna the Band the Show the Movie, grossed $60,207, while the drama Montreal, My Beautiful earned $34,624 across the participating cinemas.
The visibility gap between Marvel and domestic releases
Beyond contractual obligations, a lack of marketing awareness remains a primary barrier to domestic success. while 41.6 per cent of programming decisions were based on audience appeal, 34.6 per cent were attributed to programmers simply being unaware of the film's existence. Sonya Yokota William, the director of NICE, noted that while major franchises like Marvel have marketing strategies visible years in advance, domestic distributors often lack the budgets to provide similar long-term notice.
This lack of awareness creates a cycle that Yokota William describes as a "self-fulfilling prophecy." If theatres are not aware of upcoming Canadian releases, they cannot plan for them, which in turn reduces the revenue and public awareness necessary to sustain future domestic productions.
Will the Motion Picture Association - Canada respond?
The tension between independent exhibitors and major distributors remains unresolved. The Motion Picture Association - Canada, which represents industry giants including Disney, Netflix, Paramount, Amazon MGM Studios,Sony, Universal, and Warner Bros. Discovery, did not respond to requests for comment regarding the NICE report. It remains unclear if these major studios will consider relaxing their booking requirements to support the Canadian film ecosystem or if the downward trend in domestic revenue will continue.
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