New Study Finds Undervaluing Of Black Led Projects Costs Hollywood $10

When it comes to diversity, inclusion and representation, Hollywood is far from where it needs to be, but we are seeing progress. However, there are many blind spots that have been overlooked and cracks in the foundation that are growing bigger and bigger each day. If it doesn’t fix them, the industry will have more problems than it can repair — one of them being the undervaluing of Black-led projects. McKinsey & Company released a study about the film and TV industry that is both not that surprising but is very eye-opening when it comes to the work that needs to be done to achieve equality in front of and behind the camera. The research is the first integrated view of the data and reveals the many barriers that Black talent encounters across the film and TV-production ecosystem. It also shines a light on the economic impact of those inequities and offers solutions to bolster inclusivity. The company analyzed data on more than 2, 000 films and interviewed dozens of industry professionals, including writers, directors, producers, agents, actors, and executives, and collaborated with the BlackLight Collective, a coalition of Black executives and talent in the industry, including Franklin Leonard of The Black List. The research found that media and entertainment make up a bedrock industry with revenues of nearly $150 billion each year. That said, Hollywood has the potential to gain an additional $10 billion in annual revenues — which amounts to nearly 7% more than its baseline — by addressing the racial inequities. Specifically, McKinsey found that Black-led projects have been consistently underfunded and undervalued even though there has been evidence that is clear as day that they outperform other properties when it comes to a return on their investment. This aligns with a report from the UCLA-based Center for Scholars and Storytellers titled “Beyond Checking A Box: A Lack of Authentically Inclusive Representation Has Costs at the Box Office” that was released in October 2020. In addition, the term “representation matters” continues to ring true on-screen and behind the scenes. Black talent is underrepresented across the industry particularly in off-screen roles such as producer, director and writer. The one caveat here is that there is significant representation in these roles if at least one senior member of the production is Black. Other than that, Black talent behind the camera has not improved over the past 15 years. Looking at positions of creative control, the research shows that less than 6% of Hollywood films’ writers, directors, and producers are Black. When it comes to the talent in front of the camera, the study found that up and coming Black actors receive significantly fewer chances to make their mark in leading roles than white actors. In their first 10 years of work, emerging Black actors get an average of 6 leading roles, while their white counterparts get 10.