Australians are flocking to cinemas in record numbers to escape reality, but they are decisively turning their backs on seeing their own stories on the big screen. That's the stark conclusion from the 2025 box office figures, which show a dramatic divide between the pulling power of Hollywood event movies and the dwindling appeal of local productions.
The Bite of the Fake Snake vs The Hop of the Kangaroo
The symbolic low point is stark. The creature feature 'Anaconda', starring Paul Rudd and Jack Black, devoured $5.82 million in just seven days during its December release. In brutal contrast, the top-grossing Australian film of the entire year, the family comedy 'Kangaroo', managed only $5.6 million over its full three-month run. The irony is biting: 'Anaconda' was filmed in Queensland, using the Gold Coast and Scenic Rim to double for the Amazon.
The dominance of international product was overwhelming. Not only were Hollywood giants like 'A Minecraft Movie' ($56.3 million) and 'Lilo & Stitch' ($34.3m) untouchable, but even foreign-language animations outperformed homegrown efforts. Japan's 'Demon Slayer: Kimetsu No Yaiba Infinity Castle' earned $10.5 million and China's 'Ne Zha 2' took $7.5 million, both leaving 'Kangaroo' in the dust.
Only seven Australian films cracked the $1 million mark in 2025. Alongside 'Kangaroo', the list includes the Robbie Williams biopic 'Better Man' ($3.72m), Bruce Beresford's 'The Travellers' ($2.04m), and horror films 'Bring Her Back' ($2.53m) and 'Together' ($1.21m).
Why Family Films and Spectacle Rule the Cinemas
According to Kieren Dell, CEO of Regional Cinemas Australia, the path to success is clear. "Family movies are an absolute core audience, especially in regional areas which tend to out-perform on these films," he said. The data supports him, with family-friendly titles dominating the annual top 10.
The other undeniable force is sheer spectacle, best exemplified by James Cameron's 'Avatar: Fire and Ash'. The sequel propelled Boxing Day takings 35% higher than 2024 and has already grossed over $US1 billion worldwide. Cameron is now the first director to have four consecutive films cross the billion-dollar threshold.
"I think people underestimate the appeal of this movie all the time, but we have learnt to never bet against Jim Cameron," Mr Dell noted. "The sheer scope and spectacle make this a must-see at the cinema."
What Kind of Australian Stories Could Succeed?
Facing this reality, the question becomes: what Australian films could potentially draw crowds back? Mr Dell suggests a mix of genres that have worked before. "It would be good to see more iconic comedies on the big screen, and possibly some historical dramas for the older audience, and we always need more Australian family content," he said.
He pointed to the enduring appeal of films like 2015's 'The Dressmaker' as an example of the smart, engaging, female-driven content that resonates. Meanwhile, 'Kangaroo', despite its modest local returns, is nominated for Best Film at the upcoming AACTA Awards and is set for a UK release on January 30.
Looking ahead, the trend shows no sign of abating. The 2026 slate is packed with sure-fire family hits like 'The Super Mario Galaxy Movie', 'Minions 3', and 'Toy Story 5'. For the Australian film industry, the challenge of creating a genuine 'must-see' event for local audiences, rather than a 'must-miss', has never been more pressing.
