B.C. has relaxed its liquor licensing rules to allow Vancouver's Rio Theatre and other licensed venues to show movies, provided they don't serve alcohol during screenings.

The Ministry of Energy and Mines announced Thursday that venues are free to air films and pay-per-view programs outside of licensed hours, effective immediately.

"Licence holders will have the ability to choose the days of the week and hours of the day they wish to have liquor service, and are free to screen films or broadcasts on the other days and times," the ministry said in a release.

Once the requested hours and days are approved by the Liquor Control and Licensing Branch, owners must apply for any temporary changes.

Rio owner Corinne Lea applauded the quick action by the ministry, which just assumed responsibility of B.C.'s alcohol and gaming regulation on Wednesday, but said it's not the solution she and her employees were hoping for.

"My first reaction was overwhelmingly positive, I was very excited," Lea said. "The problem is the fine print."

Lea says the rigid time restrictions are unreasonable because movie companies dictate when she can and cannot hold screenings.

"The entertainment industry is unpredictable. Movie releases are dictated by Hollywood. They tell us when their movie is to be played, not the other way around," Lea said.

"How can I, as an independent theatre, decide these [hours] that will be permanent, set in stone? It's just not possible."

The single-screen Rio Theatre has been fighting for months to be able to host a mix of film screenings and licensed live performances, arguing it can't stay afloat with either exclusively.

After spending thousands of dollars applying for a liquor primary licence, Lea obtained one in January – only to be told she could no longer show films. The LCLB informed her that "under current regulations and policies, you cannot operate as a licensed live theatre at some times and an unlicensed movie theatre at others."

The ordeal has forced her to take out a second mortgage to keep the theatre open, and Lea says most of her employees have moved from working full-time hours to a couple shifts per week.

"My staff haven't even been paid for the payroll that was supposed to go out on Tuesday," she added.

Lea says she's just looking for one more tweak to B.C.'s licensing rules, and a little good faith from the ministry.

"We've agreed to lock up the alcohol [during movies]," Lea said. "I would not dare defy the rules and take a chance of losing my liquor licence. I just need them to trust that we are law abiding citizens."