During the rise of the queer rights movement, very few films depicted queer characters and the few breakthrough films almost exclusively focused narratives on queer suffering, particularly hate crimes or AIDS trauma.
Philadelphia (1993) was the first film to have a major hollywood actor play a leading gay character. The character is fired because of his homosexuality and dies of AIDS at the end of the film.
Boys Don't Cry (1999) was one of the first films to depict a trans person as the leading character. The character dies as a result of a hate crime.
Brokeback Mountain (2006) was the first queer film nominated for Best Picture at the Academy Awards. The romance is cut short between the main characters due to homophobia and the protagonist dies from a hate crime.
However, during this time there were a select few films which focused on more optimistic narratives (eg. The Birdcage (1996), But I'm A Cheerleader (1999), etc).