Can Gen Z bring back the movie industry?

In the age of streaming and lower box office performance, movie theaters may have found an unlikely ally: the generation that grew up watching everything on their phones.

Setting the stage: Just over half of Americans went to a theater at least once in the past year per a new Pew Research survey. And recent box office numbers tell a similar story:

• While revenue at North American theaters has rebounded significantly since Covid, last year’s $8.9 billion box office total was ~$2.5 billion shy of 2019.
• Attendance also remains ~20% below pre-pandemic levels.

Enter Gen Z

According to Pew’s data, two-thirds of adults aged 18-29 went to the movies in the past year, compared with the overall US figure of 53% (and just 39% of Americans 65+).

Gen Z now makes up 39% of all North American moviegoers, up from 34% in 2019, with attendance rising by 25% in the past year alone.

Driving the trend: Analysts say Gen Z’s outsized movie theater attendance is likely driven by a desire to connect and feel immersed in a shared experience, after partially growing up in lockdown. They also cite FOMO (fear of missing out) when it comes to participating in online discussions, fandoms, and the latest memes.

Studios are taking notice. Last year’s biggest films—Zootopia 2, Lilo & Stitch, A Minecraft Movie, How to Train Your Dragon—all leaned on nostalgia and familiar franchises that resonate with Gen Z.

Looking ahead…The domestic box office in 2026 is projected to have its strongest post-COVID performance yet. Analysts expect up to $10 billion in ticket sales (~10% more than last year), driven by major titles like Star Wars: The Mandalorian and Grogu (May 22), The Odyssey (July 17), and the dueling release of Avengers: Doomsday and Dune: Part Three (both Dec. 18).