Despite rising costs, Australians are flocking to the cinema in record numbers, drawn by the promise of shared experiences, cultural connections, and a much-needed escape from everyday challenges. That is according to a 2 December, 2024 report by global strategic insights practice Canvas8.
The report, Why cash-strapped Aussies still flock to the big screen, was authored by Evan E. Lambert and features expert comment from Dr. Tess Van Hemert, a lecturer in the School of Communication at Queensland University of Technology, Dr. Ruari Elkington, a creative and screen industries academic at Queensland University of Technology, and Dr. Ruth Rentschler, a professor in arts and cultural leadership at the University of South Australia.
The three Canvas8 experts found that the Australian domestic box office saw its highest sales since the COVID-19 pandemic in 2023, with over 60 million tickets sold. This trend has continued into 2024 with high-profile releases such as Inside Out 2 and Deadpool & Wolverine drawing large crowds, proving that movie theatres are more resilient than ever.
Australia’s ongoing cost-of-living crisis has done little to curb the nation’s appetite for the cinema experience. Australians are increasingly using the movies as a temporary escape from daily stress, with Top Gun: Maverick, Barbie, and Avatar: The Way of Water ranking among the country’s top-grossing films. According to recent findings, 78% of Australians have expressed a desire to visit cinemas more frequently, showing a clear desire to immerse themselves in larger-than-life experiences despite economic pressures.
Cinema operators have responded with loyalty programmes and pricing incentives to ease the financial burden on moviegoers. For instance, Event Cinemas’ Cinebuzz members enjoy Half Price Tuesdays, while HOYTS offers $10 tickets on Sundays. These initiatives are designed to make cinema outings more affordable without sacrificing the quality of the experience.
Dr. Tess Van Hemert, a lecturer in the School of Communication at Queensland University of Technology, said: “The current cost of living crisis is certainly challenging for cinema operators and audiences to endure, but cinema-going has demonstrated resilience through many previous phases of industrial, economic, and technological change.”
In addition to regular movie offerings, event cinema is becoming an increasingly popular way for Australians to engage with films. Concert films, like Renaissance: A Film by Beyoncé and Taylor Swift’s The Eras Tour, have drawn massive crowds, offering fans an opportunity to share live experiences with fellow moviegoers. These events not only cater to music lovers but also tap into the communal experience of cinema.
Dr. Ruth Rentschler, a professor of arts and cultural leadership at the University of South Australia, said: “Cinemagoers are seeking an immersive experience. They no longer want to sit passively and watch. So, surround sound is one way to do it, but special events are another way to do it.”
As Australian moviegoers become more discerning, cinema chains are innovating by offering premium experiences that extend beyond just watching a film. Luxe options, such as IMAX theatres and Gold Class lounges, are increasingly popular among high-income viewers. Premium services, including reclining seats, gourmet food, and personalised service, cater to a market that seeks comfort and exclusivity in their movie-going experience.
Research shows that 79% of ‘Hyper NEOs’ (top-tier spenders in the New Economic Order demographic) attended cinemas between January and March 2023, compared to only 54% of the general population. This highlights the growing demand for select, high-end cinema experiences.
Dr. Ruari Elkington, an academic in creative and screen industries at Queensland University of Technology, said: “FOMO is real – we all enjoy being part of the shared cultural moment of being the ones that saw that film with others in that opening weekend, especially for young people.”
As Australians navigate the cost-of-living crisis, cinema chains are also recognising the value of loyalty programmes as an essential tool to maintain and grow their customer base. The Cinema Near Me Movie Club, for example, offers a $99 yearly pass that grants members access to over 100 independent cinemas. With one ticket per month, these memberships help make cinema-going more achievable for budget-conscious Aussies.
“It’s less a cost issue and more a value question,” said Dr. Elkington. “I think the biggest and most accessible lever there is the loyalty club.” These programmes foster a sense of community and value, helping cinemas cultivate long-term relationships with their customers.
Beyond the films themselves, Australians are increasingly looking for memorable cinema experiences that extend into their social lives. Cinemas that offer special events, such as Frank-N-Furter Fridays at Dendy Cinemas, which invites drag queens to emcee screenings of The Rocky Horror Picture Show, are tapping into this need. Events like these help to cultivate a sense of community and create shared cultural moments that enhance the overall cinema experience.
Dr. Van Hemert said: “Audiences value memorable cinema experiences, and the factors such as who they attend the cinema with and the experience at the cinema site itself are important in shaping this experience.”
“The future of Australian cinema looks promising, with loyalty programmes, innovative premium experiences, and engaging special events continuing to evolve in response to audience needs. Cinemas are adapting to the economic challenges while still providing an escape that many Australians cherish, proving that the allure of the big screen is far from waning,” said Nick Morris, UK-based founder and managing director of Canvas8.
