Norway's largest exhibitor, Oslo Cinemas, cancelled the opening of Spy Game this week because of a disagreement with distributor Egmont Columbia TriStar on the film's rental terms. More Hollywood titles could follow.

Norwegian distributors and exhibitors recently approved a renewal of the Film Rental Agreement after the old agreement expired on January 1 2002.

However, in an unexpected and unprecedented move, Oslo Cinemas has opted out of the new agreement, choosing instead to negotiate rental terms on a film-to-film basis with each distributor.

In response, Norway's main distributors, including several US majors, have announced that they will not supply major releases to Oslo Cinemas as long as the exhibitor refuses to pay the increased local rental rates.

As a result, the only film to have opened in Oslo this week is Edward Yang's arthouse drama Yi Yi from niche distributor Arthaus. In the long run, Oslo Cinemas could lose several major Hollywood titles, while the distributors could lose a considerable income from Norway's largest theatre chain.

Oslo Cinemas is owned by the municipal authorities and controls all 31 screens in Norway's capital, with a 30% national market share. Highly unusual by international standards, the Film Rental Agreement, which dates from 1953, prevents cinemas from negotiating individual terms, but has been traditionally accepted by the local industry as a means of protecting the existence of small regional cinemas which would otherwise be unable to afford 'free market' charges.