The company began in 1979 as Pan-Canadian Film Distributors, a partnership between film producer Garth Drabinsky and inventor Nat Taylor, based in Toronto, Ontario. At the time of its establishment in the United States, the Cineplex Odeon theatre chain and the tie-in studio were owned by the MCA entertainment group, also the then-owners of Universal Pictures. On August 27, 1986, Pan-Canadian renamed itself as Cineplex Odeon Films, and began operations at Los Angeles, California in November 1986; Garth Drabinsky became its chief officer. Cineplex Odeon Films made its first film to American screens, which was The Decline of the American Empire, produced by Rene Malo.
The distribution branch then underwent a restructuring shortly afterwards, in order to turn the company into a U.S.-based subsidiary of the firm, with headquarters in Century City, with regional offices in New York City, Chicago and other markets, and the new Canadian division of the studio would start operating out of the new Cineplex Odeon corporate headquarters in Canada, and the turf included licensing of films on home video, pay TV and theatrical distribution. In late 1987, it formed a partnership with Robert Redford's production company Wildwood Enterprises, Inc. by setting up Northfolk Productions, for combining the production of both pictures with budgets less than $5 million, and has plans to produce at least five films for the next five years between the average budget of $4–5 million. By 1990, it was Canada's largest independent film distribution company.
On October 22, 1987, Cineplex Odeon created yet another subsidiary, that of the television division, Cineplex Odeon Television Productions, whose first offerings included 41 then-new episodes of the anthology series Alfred Hitchcock Presents, set for the USA Network in 1988, in association with MCA TV (they were seen in Canada on the Global Television Network). David J. Patterson became senior vice president of the Cineplex Odeon television division.
The company briefly served in the U.S. as a de-facto arthouse arm of Universal Pictures in the mid-to-late 1980s after Universal Classics folded, due to MCA owning a stake in Cineplex Odeon, eventually stopped distributing films in 1989 and it was not until 1992 that Universal entered into the arthouse business again by partnering with PolyGram Filmed Entertainment in the distribution company Gramercy Pictures to serve the US market.
In December 1993, it was announced by Michael Herman (Cineplex Odeon Films Canada Senior Vice President of Corporate Affairs) that as part of a corporate restructuring, Bryan Gliserman had been appointed to the role of Senior Vice President of Corporate Affairs effective January 17, 1994. Gliserman would oversee all of Cineplex Odeon Films operations, and would be responsible for the maintenance and improvement of Cineplex Odeon Films distribution services. Gliserman would also build relationships with key suppliers like Columbia/Tri-Star, Savoy Pictures and Gramercy Pictures. Prior to his promotion, Gliserman had spent 17 years in the Canadian film industry. He had experience with development, financing, production, distribution and exhibition posts with a wide variety of organization.