Australians are increasingly choosing international blockbusters over local films, a trend highlighted by recent box office figures for 2025. While audiences flock to see films like James Cameron‘s Avatar: Fire and Ash, Australian movies are struggling to attract viewership. Box office data reveals that the total earnings from Australian films have dipped sharply, with only seven local movies surpassing $1 million in ticket sales this year.
Cinemas across the nation enjoyed a significant boost, particularly during the summer holidays, driven by the phenomenal success of Avatar: Fire and Ash, which increased Boxing Day revenues by 35 percent compared to 2024. Despite this surge, local productions such as Kangaroo have been overshadowed by both Hollywood hits and foreign-language films. For instance, Anaconda, which was filmed in Queensland, earned $5.82 million in its opening week—more than the entire three-month run of Kangaroo, which collected $5.6 million.
The dominance of international films extends to animated features as well. Japanese film Demon Slayer: Kimetsu No Yaiba Infinity Castle grossed $10.5 million, while Ne Zha 2 from China raked in $7.5 million, both outperforming Australian titles. The lack of local audience engagement has prompted industry leaders to reevaluate the types of stories being told.
Kieren Dell, CEO of Regional Cinemas Australia, expressed disappointment over Kangaroo‘s performance. “I had high hopes that Kangaroo could do better than Runt the previous year,” Dell stated. The family-friendly film barely made it into Australia’s top 50 films of 2025, despite the popularity of family-oriented cinema. A Minecraft Movie led overall earnings with $56.3 million, followed by Disney’s Lilo & Stitch at $34.3 million.
Dell emphasized the importance of appealing to families, particularly in regional areas where family films tend to perform better. “The younger generations are the key to the future of cinema,” he noted, highlighting that films which resonate with children can drive significant box office success. He suggested that the industry should focus on creating more iconic comedies and engaging historical dramas to attract a wider audience.
Looking ahead, Kangaroo has received a nomination for Best Film at the upcoming AACTA Awards, set for February 6, 2026. Despite its challenges in box office performance, this recognition may bolster its profile.
Worldwide, Ne Zha 2 emerged as the highest-grossing film of 2025, amassing an impressive $2.15 billion, underscoring the expanding influence of the Chinese film market. Other top contenders included Zootopia 2, Avatar: Fire and Ash, and A Minecraft Movie, reflecting a global preference for blockbuster entertainment.
Cameron’s Avatar: Fire and Ash has quickly become a cultural phenomenon, generating over $1 billion globally since its release on December 18, 2025. It has become a cornerstone for cinema operators, who are counting on its appeal to attract audiences back to theaters. “We have learnt to never bet against Jim Cameron,” Dell remarked, noting the film’s potential to draw viewers, especially in 3D.
As the Australian box office closes out 2025, cinema operators report strong momentum, with significant increases in ticket sales during key holiday periods. Hoyts CEO Damian Keogh confirmed that their box office takings were up by 35 percent over the same timeframe last year.
Overall, the landscape for Australian films remains challenging. The industry must adapt to changing viewer preferences and consider how to create content that resonates with modern audiences. As expectations shift towards family-friendly and engaging narratives, the future of Australian cinema depends on its ability to innovate and attract a dedicated audience once again.
