Having survived world wars, the Great Depression, the global financial crisis, video piracy and the rise of Netflix, Australia's cinema industry is facing its biggest challenge as it prepares to roll out the red carpet once again after a three-month COVID-19 shutdown.

With social distancing putting limits on occupancy and more people choosing to stream entertainment at home, research house IBISWorld forecasts cinema operators' revenue to fall 26 per cent this financial year to $1.3 billion.