Shoppers and cinema-goers noticed something worrying this year: representation on the big screen slipped. GLAAD’s new Where We Are in Film report shows fewer LGBTQ+ characters across the top 10 studio distributors, even as queer horror and indie titles proved inclusive storytelling can be both bold and profitable.

Essential Takeaways

  • Decline in inclusion: Only 46 of 225 major-studio films (20.4%) featured LGBTQ+ characters, down from 23.6% last year.
  • Fewer characters overall: GLAAD counted 112 LGBTQ characters, 69 fewer than the previous year, with zero transgender characters identified.
  • Horror bucks the trend: LGBTQ-inclusive horror films performed strongly, each earning more than double their production budgets.
  • Studio variation: Indie labels and mid-budget films showed the strongest returns for inclusive titles; major studios like Lionsgate and Paramount lagged behind.
  • Family films missing: None of the 19 animated/family films tracked included LGBTQ characters, amid political pressure over trans representation in kids’ content.

Representation fell, but box office gave a contrarian wink

It’s stark and a little sad to see the numbers: under a quarter of top-studio releases included LGBTQ characters, and that share fell again in 2025. The loss feels tangible , fewer faces, fewer stories, and for many viewers, fewer reasons to feel seen when they pick a film. GLAAD’s study looked at releases from the usual suspects , A24, Netflix, Disney, Warner Bros. Discovery and so on , and the decline is real across the group. The odd bright spot is horror. Films like I Know What You Did Last Summer and Companion proved queer-centred stories can draw audiences and return cash, underlining that representation isn’t just an ethical choice, it’s commercially sensible.

Where the studios landed , winners, stragglers and the middling middle

Not all studios moved in the same direction. Netflix, A24 and Sony showed relatively higher percentages of inclusive titles, while Lionsgate and Paramount sat near the bottom. That matters because the majors set the tone: when big distributors underinvest, visibility shrinks. According to the GLAAD breakdown, studios with mid-budget and indie-label releases often saw better outcomes for LGBTQ stories , and sometimes better box-office upside. If you’re choosing what to watch or back with your ticket, that’s useful to know: smaller-scale or indie-flavoured releases have been where queer narratives have flourished.

The demographic logic studios can’t ignore

GLAAD makes the financial case loud and clear: Gen Z represents the largest share of moviegoers and has the highest proportion of people identifying as LGBTQ. Neglect that audience and you risk alienating future box-office regulars. Industry observers and GLAAD researchers point to Gallup data showing roughly one in five Americans under 30 identify as LGBTQ, and that’s not a niche market. So when studios cite risk as an excuse, it rings hollow , the numbers suggest investment in authentic stories pays off, especially with younger audiences primed to seek out inclusion.

The worrying absence in family films and transgender visibility

One of the most striking findings is the complete lack of LGBTQ characters in the 19 animated/family films tracked. That’s happening as political pressure mounts , for instance, proposals to label kids’ content that includes trans or non-binary characters , and it’s chilling for parents who want normalised, age-appropriate representation for their children. Polling shows many families are open to such content, yet industry output is retreating. Equally troubling: zero transgender characters were identified in the 2025 slate. Visibility isn’t a luxury for trans people; it’s a lifeline. The absence here is both a cultural gap and a missed opportunity for honest storytelling.

How to read this for viewers and ticket-buyers

If you care about representation, consider voting with your feet and your wallet. Seek out mid-budget and indie releases, and give theatrical runs a try , the GLAAD report notes inclusive films in certain genres did very well financially. For parents, look for reviews that flag LGBTQ content in family-friendly ways and support creators who centre queer voices. And if you’re a studio exec reading this at your desk: backing diverse stories isn’t just good PR, it’s smart business. The audience is there, eager and ready.

It's a small change in commissioning and promotion that could make a big difference for queer viewers , and for cinema as a whole.

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