Hollywood Is Reeling—and PG Movies Have Never Been So Popular

There’s one reliable group of moviegoers left in America—and they can’t go to the movies by themselves.

This week, the kids who make up the industry’s target audience will be heading to theaters for “Zootopia 2” and “Wicked: For Good,” sequels to box-office sensations that could be the highest-grossing movies of the year.

They also have something else in common that has become essential to Hollywood’s biggest hits.

They’re rated PG.

For decades, the movies that printed money were all rated PG-13. It was the rating of the most successful films ever made: superhero franchises, “Avatar” and “Avengers” releases, “Star Wars” episodes, “Titanic,” “Top Gun: Maverick,” the world of “Jurassic Park” and everyone from James Bond to Barbie.

But the entertainment business has never been so dependent on kids dragging their whole families to theatres for the latest PG movie.

Among the bright spots in a bleak year for Hollywood were “A Minecraft Movie” and “Lilo & Stitch,” which are currently sitting atop the domestic box office.

They may soon be jumped by “Zootopia” and “Wicked.” The list of PG hits this year also included the live-action remake of “How to Train Your Dragon,” which improbably beat the latest “Mission: Impossible.”

Meanwhile, last year was the most lucrative year of all time for PG movies, and there are more PG sure-things on the slate for coming years as studios pump out the movies that continue to defy the industry’s gravity.

To put it another way, the people with the most juice in Hollywood right now are 10 years old.

“Kids and preteens,” a recent National Research Group report concluded, “have been the driving force behind many of the biggest theatrical success stories of the past three years.”

The kids and preteens in the youngest generation have grown up with the ability to watch any movie on any device anytime and anywhere they desire.

As it turns out, the place they really want to watch movies is the theater. And theaters are perfectly willing to cater to their most loyal customers.

“If we have an R-rated or horror film on the same day as a PG animated film, I can promise you: We’re always going to try to play that PG animated film,” said Phil Zacheretti, chief executive of Phoenix Theatres Entertainment, which operates multiplexes across the country.

His strategy for those PG films is both simple and profitable.

“We basically try to play every studio’s PG films in as many theaters as we can,” he said.

By now, theatre owners understand those movies are their safest bets. Last year, “Inside Out 2” finished No. 1 at the box office.

The first “Wicked” was very, very popular, too. Anyone with young children was probably in theaters for “Moana 2,” “Sonic the Hedgehog 3” or “Despicable Me 4,” if not all of them.

The result was the first year that PG won the box office after decades of getting trounced by PG-13. And it might just happen again this year.

PG movies have always performed well. But once upon a time, they came with a stigma. “Older audiences thought PG was not going to be cool enough, and families with kids thought PG was going to be too edgy,” said Paul Dergarabedian , Comscore’s head of marketplace trends.

“It was the opposite of the Goldilocks rating.” Only recently has the rating of animated classics, Broadway musicals and video games become just right.

But their rising value isn’t just about PG movies doing better. It’s also about PG-13 and almost every other kind of movie doing worse.

At this point, not even superheroes are guaranteed attractions in Hollywood. Neither is Sydney Sweeney. There are still PG-13 juggernauts, like “Superman,” “Jurassic World: Rebirth” and the upcoming behemoth “Avatar: Fire and Ash.”

But every original PG-13 or R-rated movie like “Sinners” that gets adults to theaters without their children feels like a miracle.

Once they get to the theatre, children want different things than their parents. For them, moviegoing is deeply social, according to NRG’s study, and the single most powerful driver of their behavior is spending time with friends and family.

For as long as theatres have existed, kids have gone there to hang out. Until they couldn’t. In 2020 and 2021, a century of established habits was suddenly disrupted.

When family movies went directly to streaming, the industry feared that PG audiences wouldn’t come back when they could just stay home.

But in a dramatic twist, Gen Alpha now prefers theatres more than Gen Z, millennials or Gen X. If anything, they’re hungry for experiences that are more theatrical. They want immersive screenings—think IMAX , 3-D, Sphere. What they don’t want is to immerse themselves in phone screens.

“They’re not looking to replicate what they can get in their living rooms and bedrooms,” said Fergus Navaratnam-Blair, NRG’s vice president of trends and futures. “They’re looking for something that gives them a reason to disconnect.”

They’re also looking to engage in “participatory fandom.” PG releases meet that demand. Even theater-averse Netflix supplied Gen Alpha with limited theatrical runs of “ KPop Demon Hunters.”

In recent years, audiences sang along to “ Wicked ,” dressed up as Gentleminions and went nuts for Minecraft references their parents just wouldn’t understand.

Those full-blown viral frenzies help movies explode into movements. You might wait to see a movie if you can avoid shelling out for tickets, popcorn and a babysitter.

But your kids won’t. The whole point of seeing a movie is participating in the online memes around that movie, which means they must see it immediately.

This week, despite mixed reviews, “Wicked: For Good” was tracking for the highest ticket presales of any PG movie ever, according to Fandango.

As predictive indicators, those presale numbers are useful. Penn Ketchum, the managing partner of Penn Cinema, wasn’t sure what to expect from the upcoming “David,” an animated biblical children’s movie from a studio that specialises in faith-based content.

But when every showtime at his Pennsylvania and Delaware theatres had strong pre sales, he added screens. Then he added more. When it’s released in December, he predicts “David” will beat the box-office goliath of “Avatar” in some of his markets. “Which will be a massive upset,” he says.

Other PG titles have something else going for them. Navaratnam-Blair calls it “intergenerational nostalgia.”

When “Toy Story 5” comes out next year, for example, millennials who saw the original in theatres as kids 30 years ago will be accompanying their own kids.

Of course, not every PG movie goes to infinity and beyond. This was also a year when Pixar’s “Elio” flopped and Disney’s live-action “Snow White” was left for dead .

But those bombs were the exceptions that proved the industry’s rules of success. After all, today’s audiences don’t have a connection to Snow White. They care more about the star character of another PG movie coming out this year: SpongeBob.

Which means their parents will be taking Hollywood’s most reliable moviegoers back to theatres next month—just as soon as they leave Zootopia and Oz.

Leaders from five businesses share what running a company has taught them — and why the reality hasn’t always matched their expectations.

Leadership can look very different from the outside. Behind the title are difficult decisions, competing demands and the challenge of knowing when to speak, when to listen and when to change course.

From digital marketing and wearable technology to property, pool care and dental technology, these business leaders share the lessons nobody prepared them for.

Sabri Suby, King Kong

Sabri Suby launched digital marketing agency King Kong in 2014 with $50 and a laptop, working from his home in Byron Bay. A regular on the Australian Financial Review’s Young Rich List, he is also a bestselling author, a former Shark Tank Australia investor and a father of three.

“The biggest misconception about being a CEO is that you won’t have a boss. People think, ‘I want to start my own company so I can be the CEO and be my own boss.’ Little do they know that you start working for 10, 20, sometimes hundreds of bosses. Nothing is more important than delivering for your client, and you’re held accountable to them every single day.

“With my team members, I never refer to them as employees. They don’t work for me; they work with me. The whole idea of the CEO as the big boss at the top is completely false.

“Company building is one of the most creative endeavours there is. If you’re a builder, and you love building systems, teams, products and services — all the things I love to do — then it’s the ultimate canvas.

“Great leaders think of their company as a living organism. You have to do what’s best for the whole organisation. That means making the hard, unpopular decisions. As a leader, you have to zoom out and optimise for the overall health of the organisation, and then sometimes carry the weight of being misunderstood while you do it.

“The lid on any organisation is the founder’s ability to think big. You can point to countless businesses in the smallest, boring niches that became enormous, billion-dollar companies purely because the founder was able to conceive it before they could achieve it.

“Early in my career, I had a bad case of shiny object syndrome. I was under the false belief that the more opportunities I pursued and said yes to, the more I’d increase my surface area of luck. It’s actually the opposite. Focus is what increases your luck: your ability to concentrate on the few things that really matter and say no to everything else.”

Nicky Zhu, Dymesty

Growing up, Nicky Zhu wanted to be an archaeologist. Instead, her career in wearable AI has involved digging through layers of technological complexity. At smart-glasses company Dymesty, she has learned that leadership requires conviction, honest feedback and the courage to be challenged.

“Nobody tells you that leadership at a startup means making decisions with conviction while privately questioning every single one of them. The hardest part of leadership isn’t the technology, the fundraising or the competition. It’s the loneliness of being the person who has to project certainty when certainty doesn’t exist.

“Your team doesn’t need you to be right. They need you to be decisive. I’ve made calls that turned out wrong — killing a product feature three weeks before launch, restructuring our supply chain partnership mid-production — and the team recovered. What they couldn’t recover from was the quarter I hesitated.

“I delayed a critical hiring decision for six weeks because I wasn’t sure we could afford the role. That hesitation cost us a product development cycle and sent a signal to the team that I didn’t trust our own trajectory. The damage from indecision was worse than any bad decision I’ve made.

“As CEO, you will often be the last person to hear the truth. The day you take on that role, the quality of honest feedback you receive drops by half. People filter. They soften. They tell you what’s working and route around what isn’t.

“I learned to build what I call ‘truth channels’ — one-on-one check-ins where I explicitly ask each team member to tell me one thing that’s broken and one thing I’m wrong about. The first two months, I got polite deflections. By month four, I was getting the kind of direct feedback that saved us from shipping a product with a critical UX flaw nobody had escalated.

“Your job isn’t to be the smartest person in the room. It’s to make the room safe enough for the smartest person to speak up. I’ve watched technically brilliant engineers sit silent in meetings because the culture rewarded agreement over dissent.

“The moment I started publicly rewarding the person who challenged my thinking — not just tolerating it, but thanking them in front of the team — the quality of our product decisions improved measurably.

“Leadership isn’t a skill you develop and then possess. It’s a practice you repeat daily while constantly discovering new ways you’re getting it wrong. I genuinely love that there’s no finish line. It keeps the work alive.”

Nic Brill, Poolwerx

Nic Brill began competitive swimming at six in his home country of South Africa. Perhaps fittingly, his career eventually led him to Poolwerx, the pool and spa maintenance business founded in Queensland. He became its Australia and New Zealand CEO in 2022 and global CEO in October 2025.

“My background in swimming meant I learned early on that while individual discipline and pushing beyond your limits are essential, you cannot achieve sustainable global scale alone. One of the toughest lessons I’ve learned in business is that you can have the most brilliant strategy in the world, but if you don’t cultivate the right culture and build a capable, resilient team around you, execution will falter.

“Resilience isn’t just about enduring tough times — such as navigating pandemics or economic downturns — it’s about having the humility to listen to your network and the agility to pivot when necessary.

“People often assume a CEO has all the answers and makes every important decision. The reality is very different. My role isn’t to have all the answers. Leadership is about listening, learning and continually adapting, not having all the answers from day one.

“As a leader, particularly within a franchise model, my job is to clear the path for others to succeed. At Poolwerx, our number one KPI is franchisee profitability. The biggest misconception is that the CEO is at the centre of the business, when in truth, our franchise partners and clients are at the centre.

“I’ve never felt that people work for me — people work with me. And because they work with me, that doesn’t mean that I’m ultimately the person who makes the call. I genuinely want to hear their views because I do believe that if we’re in it together, everyone’s combined input will make for a better outcome.

“What I love most about what I do is the impact we get to have on people’s lives. On one hand, I get to see our franchise partners build thriving businesses, and on the other, we help families everywhere safely enjoy their backyards and create lifelong poolside memories together.

“Understanding your purpose in life — not just work — and genuinely knowing you’re not the star of the show are things I try to value every day.”

Nat Gordon, Propoholic

Nat Gordon co-founded her first real estate agency at 21 and owned and operated a boutique Sydney agency for two decades. Today, as founder and CEO of independent property advocacy business Propoholic, she guides clients through buying, selling and renovating.

“I’ve owned real estate and construction businesses for 30 years, and I still make decisions every day without knowing how people will respond. In property, nothing is guaranteed, so you consider everything you know, trust your instinct and make the best decision you can.

“The hardest part of leading people is that no two people are wired the same way, so your approach is constantly changing. Every person — whether a team member or a client — is going through something different, even if the situation on paper looks the same. Listening well and genuinely caring change the quality of every conversation and always improve the outcome.

“The ideas that come to me in the peace of the night are often far better than those from the noise of the day. Our clients are trusting us with their biggest financial asset, and I don’t take that lightly. If lying awake thinking through another scenario helps them achieve a better outcome, I don’t see that as a bad thing.

“One lesson I’ve learned is that you won’t make everyone happy, and trying to do so will make you unhappy. Early on, I wanted every client to leave the conversation happy. Now I understand the right advice is sometimes advice nobody wants to hear.

“I think good leaders don’t pretend to know everything. It’s OK to admit that you aren’t sure about something, and people respect you more for acknowledging that. You have to seek answers and be willing to learn, often from the smart people you surround yourself with.”

Alexis and Luke Withers, Aalto

Husband-and-wife team Alexis and Luke Withers are co-CEOs of Australian dental technology company Aalto, whose clear aligners are manufactured in Sydney. They set out to make orthodontic treatment simpler and more accessible — and along the way discovered what it takes to lead a business together.

Alexis: “Nobody ever told me that leadership often means walking away from things that are working. One of the biggest decisions we made as founders was to step away from a successful business model despite achieving 312% revenue growth between 2020 and 2025.

“On paper, it made very little sense. But after thousands of patient interactions, we could see where customer expectations and the industry were heading. Leadership isn’t just protecting what you’ve built; sometimes it’s having the conviction to disrupt yourself before somebody else does.

“Another thing no one tells you is that being right matters less than listening. Some of our biggest strategic decisions came directly from customer feedback. Founders can become attached to their original vision, but customers often spot changes in the market before you do. Leadership is having the humility to listen when the evidence tells you your assumptions are wrong.”

Luke: “The traditional sole-CEO structure dominates the corporate landscape, so there weren’t many places to look for examples. What I have come to realise is that your co-founder should challenge you, not validate you.

“On paper, we probably shouldn’t work as founders. Alexis is analytical, methodical and naturally risk-aware. I am instinctive, ambitious and like to move quickly. We rarely approach problems the same way, but over time we’ve realised that tension is one of our biggest strengths. The best decisions usually happen somewhere in the middle of our opposing viewpoints.

“And nobody tells you that running a company with your spouse means there is no off switch! People love the idea of building a business with their partner, but nobody talks about the fact that board meetings happen over dinner and strategy conversations happen on holidays.

“We’ve had to become very intentional about separating founder time from husband-and-wife time, which we still struggle with to the detriment of our friends and family!”