If Hollywood addressed racial inequalities in the film and television industry, annual revenue could increase by 7%, or about $ 10 billion, according to the results of a new McKinsey study.
The consultancy’s research showed that stories directed by Blacks are underfunded and undervalued.
“A complex and interdependent value chain full of dozens of hidden barriers and other pain points reinforces the racial status quo of the industry. Based on our research, we have cataloged about 40 specific pain points that black talent he meets regularly as they try to build their careers, ”the report’s authors wrote.
Franklin Leonard, CEO and founder of The Blacklist, which aims to democratize writers ’access to the entertainment industry, and a former McKinsey employee, prompted the consulting giant to undergo this study last June.
“I contacted some of my former colleagues and said that if you’re interested in studying racial inequity, one place you can do it is Hollywood,” Leonard said. “Especially because this economic inequality not only exists in our industry, but we export and amplify stories around the world, which also have material effects on the lives of blacks and people around the world.”
The management ranks of the film and television industry are disproportionately white. Ninety-two percent of all film executives are white, according to the report. McKinsey noted that this is more than any other industry, including finance and energy. According to the report, the television industry is slightly more diverse than consumer goods, finance and transport / travel, with 87% whites.
And while the U.S. population is about 13.5% black, the report finds that 6% of Hollywood film writers, directors and producers are black, while 8% have at least one black producer. .
McKinsey said there are key barriers to entry, including the fact that entry-level entertainment jobs only offer low or zero pay. Research highlights that industry jobs are often shared between small, overwhelming elite networks.
Another challenge is bias, both unconscious and open.
“We have a black community of extraordinary talent in Hollywood and they’re doing an extraordinary job,” Leonard said. “One has to wonder what they would be capable of and what Hollywood would be capable of if we removed these obstacles and allowed everyone to participate on a level commensurate with their ability and frankly proportional to their ability to get a return on investment.”
Leonard said he was “most impacted” by the figures regarding return on investment.
“Black content, despite being underfunded, poorly supported and poorly distributed, still offers a better ROI of about 10%,” he said.
To help reach the field level, the study recommends that studies adopt transparency and accountability over their own ranks and expand recruitment to public schools and historically to black colleges and universities. This could be achieved with the help of a third party organization.
Leonard noted that the potential $ 10 billion drop that could result from diversity efforts is specifically tied to the under-representation of talent and black executives. The total opportunity is significantly greater than if other underrepresented minorities are added.