If Hollywood tackled racial inequalities in the movie and TV industry, annual sales could increase by 7%, or about $ 10 billion, according to the findings of a new McKinsey study.
The consultancy’s investigation found that stories led by the black are underfunded and undervalued.
“A complex, interdependent value chain filled with dozens of hidden barriers and other pain points reinforces the racial status quo in the industry. Based on our research, we have cataloged nearly 40 specific pain points that black talent regularly encounters as they try their careers,” wrote the authors of the report.
Franklin Leonard, the 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 investigation last June.
“I reached out to some of my former colleagues and said if you’re interested in racial inequality, you can do it in Hollywood, among others,” Leonard said. “Mainly because that economic inequality does not only exist within our industry, but we export and spread stories around the world, which then also have material consequences for the lives of black people and people around the world.”
Film and TV industry management is disproportionately white. Ninety-two percent of all movie managers are white, the report said. McKinsey noted that that’s more than any other industry, including finance and energy. The TV industry is slightly more diverse than consumer goods, finance and transportation / travel, according to the report, with 87% white.
And while the U.S. population is about 13.5% black, the report finds that 6% of writers, directors, and producers of Hollywood movies are black, while 8% have at least one black producer.
McKinsey said there are significant barriers to entry, including the fact that entry-level entertainment jobs often offer little or no pay. The research underscores that industrial jobs are often shared by small, predominantly white elite networks.
Another challenge is bias – both unconsciously and overtly.
“We have an extremely talented black community in Hollywood and they are doing an extraordinary job,” said Leonard. “ You have to ask yourself what they would be capable of and what Hollywood would be able to do if we actually remove those obstacles and give everyone the opportunity to participate at a level that is consistent with their ability, and frankly proportionate. with their ability to provide a return on investment. ”
Leonard said he was “most shocked” by returns on investment figures.
“Black content, despite underfunded, under-supported and under-distributed, still delivers a better ROI of about 10%,” he said.
To help level the field, the study recommends that studios embrace transparency and accountability over their own ranks and expand recruitment to public schools and historically black colleges and universities. This can be achieved with the help of an outside organization.
Leonard noted that the potential $ 10 billion windfall that could be inferred from diversity efforts is specifically related to the underrepresentation of black talent and executives. The overall probability is considerably higher than if other under-represented minorities are also added.