Racial inequality in Hollywood is costing the entertainment industry billions every year, according to a study released Thursday by consulting firm McKinsey and Company.
“By addressing persistent racial inequities, the industry could reap an additional $10 billion in annual revenues,” the study said. That’s “about 7 percent more than the assessed baseline of $148 billion.”
That $148 billion figure was based on “industry revenues,” including U.S.-produced global theatrical box office, streaming services, cable, and broadcast, but not sports or unscripted programming.
“Fewer Black-led stories get told, and when they are, these projects have been consistently underfunded and undervalued, despite often earning higher relative returns than other properties,” the study said.
For the study, researchers looked to data provided by studies on diversity in the entertainment industry from the University of California, Los Angeles, Nielsen, and the University of Southern California, as well as data from industry publication Variety. Researchers also spoked to more than 50 people working in the industry, including studio executives, producers, writers, actors, directors, agents. McKinsey also collaborated with the BlackLight Collective, a coalition of Black leaders, artists, and executives who work in the entertainment industry.
The study noted that in 2019, top […]