The Australian film industry faces a stark reality as box office data for 2025 reveals a significant decline in local film attendance. While audiences are flocking to major Hollywood productions, Australian films are struggling to capture viewer interest. This trend is highlighted by the success of James Cameron‘s Avatar: Fire and Ash, which propelled Boxing Day ticket sales to a remarkable 35 percent increase over the previous year.
Despite the strong performance of international films, local productions have not fared as well. The highest-grossing Australian film of 2025, Kangaroo, managed to earn just $5.6 million across its three-month run, a figure that pales in comparison to the $5.82 million earned by the creature feature Anaconda in just its first week. Ironically, Anaconda was filmed in Queensland, utilizing the Gold Coast and Scenic Rim locations to represent the Amazon rainforest.
Not only are Hollywood films dominating, but foreign-language animations are also outpacing local productions. Japanese film Demon Slayer: Kimetsu No Yaiba Infinity Castle grossed $10.5 million, while the Chinese film Ne Zha 2 earned $7.5 million, both surpassing the top Australian film for the year. With only seven Australian films reaching the $1 million mark in ticket sales, the industry is facing a pressing challenge.
Kieren Dell, chief executive of Regional Cinemas Australia, expressed disappointment over Kangaroo‘s performance, noting it fell short of expectations set by the previous year’s film, Runt. Dell emphasized the importance of attracting families to cinemas, particularly in regional areas where family audiences tend to be more robust. He pointed out that family films like A Minecraft Movie, which earned $56.3 million, are essential for driving cinema attendance.
Looking ahead, Dell advocates for more iconic Australian comedies, historical dramas, and family content to reignite interest in local storytelling. He cited a recent revival of The Dressmaker as an example of engaging female-driven content that resonates with audiences.
As the industry grapples with these challenges, the 2026 AACTA Awards will see Kangaroo nominated for Best Film, alongside other titles such as Bring Her Back and The Correspondent. The global film landscape is also shifting, with Ne Zha 2 emerging as the highest-grossing film worldwide at an astonishing $2.15 billion, underscoring the growing influence of the Chinese film market.
Cameron’s Avatar: Fire and Ash continues to dominate the Australian box office, having grossed over $38.55 million in its opening weeks. This film, part of a franchise that has already amassed more than $6.35 billion globally, showcases the enduring appeal of large-scale cinematic experiences. It has also set a record as the first film to surpass $1 billion in four consecutive releases for the director.
Cinema operators, including Hoyts CEO Damian Keogh, noted a positive trend for the industry as ticket sales surged during the holiday season. Keogh reported a 35 percent increase in box office takings compared to the same period in 2024. This surge reflects audiences’ strong preference for summer blockbusters that are best experienced on the big screen.
As the Australian film industry seeks to regain its footing, the upcoming year promises a plethora of anticipated releases. Family films like the Super Mario Galaxy Movie and sequels to beloved franchises, including Toy Story 5 and Minions 3, are expected to draw audiences back to cinemas. Meanwhile, the Marvel franchise hopes to reclaim its place in the cinematic landscape with new Spider-Man and Avengers titles.
The future of Australian cinema may depend on its ability to adapt and produce content that resonates with audiences, rekindling interest in local narratives while navigating the competitive landscape dominated by international blockbusters.
