If Hollywood were to address racial inequities in the film and TV industry, annual revenues could increase by 7%, or about $ 10 billion, according to the findings of a new study by McKinsey.
The research firm’s research has found that black-led stories are underfunded and undervalued.
“A complex, interdependent value chain full of dozens of hidden barriers and other points of pain strengthens the racial status quo in the industry. Based on our research, we have cataloged nearly 40 specific pain points that black talents encounter on a regular basis while trying to build careers, “the report wrote.
Franklin Leonard, CEO and founder of The Blacklist, which aims to democratize writers’ access to the entertainment industry and was a former McKinsey employee, led the giant consultant to do the study in June last year.
“I contacted some of my former colleagues and said that if you’re interested in studying racial inequity, the only place you can do it is Hollywood,” Leonard said. “Especially because not only does economic inequity exist in our industry, but we also export and amplify stories from around the world that have material effects on the lives of black people and people around the world.”
The leading ranks of the film and TV industry are disproportionately white. Ninety-two percent of all film directors are white, the report said. McKinsey noted that it is more than any other industry, including finance and energy. The TV industry is slightly more diverse than consumer goods, finance and transport / travel, at 87% white, according to the report.
And while the US population is about 13.5% black, the report finds that 6% of Hollywood writers, directors and filmmakers are black, while 8% have at least one black producer.
McKinsey said there are key barriers to entry, including that basic entertainment jobs often offer little or no pay. Research highlights that jobs in the industry are often split between small, overwhelmingly white elite networks.
Another challenge is bias – both unconscious and obvious.
“We have an extraordinarily talented black community in Hollywood and they do a great job,” Leonard said. “We have to ask ourselves what Hollywood would be capable of and what it would be capable of if we effectively remove those obstacles and allow everyone to participate at a level commensurate with their ability and honestly proportionate to their ability to return on investment. . ”
Leonard said he was “most shocked” by the figures on return on investment.
“The black content, despite being underfunded, under-supported, under-distributed, still offers a better ROI of about 10%,” he said.
To help level the field, the study recommends that studios adopt transparency and accountability about their own ranks and extend recruitment to state schools and, historically, to black colleges and universities. This could be done with the help of a third party organization.
Leonard noted that the $ 10 billion potential that could be derived from diversity efforts is specifically linked to the under-representation of black talent and directors. The total opportunity is significantly higher than if other under-represented minorities are added.