Hollywood is leaving a lot of money on the table—up to $10 billion a year—by failing to be inclusive. McKinsey partners Jonathan Dunn, Sheldon Lyn and Ammanuel Zegeye, and consultant Nony Onyeador issued a report on the topic titled Black Representation in Film and TV.
Among the findings: the $148 billion industry is losing $10 billion by not resolving equity issues. The 7% loss is based on the consulting firm's projection of profits in a more equitable ecosystem, one that has “closed the representation deficit for Black off-screen talent, achieved production and marketing budget parity, and given Black-led properties equal international distribution.”
The study found that 87% of TV executives and 92% of film executives are white; the agents and executive staff at the industry’s top three talent agencies were about 90% white — and the partners at these agencies were 97% white.
The trickle-down effect of inclusion is worth considering as well. Previous McKinsey reports say that closing the racial wealth gap could up the U.S. GDP by up to 6% by 2028.
McKinsey recommends a systematic rehab of the industry, from talent discovery to distribution and marketing to talent and leadership.
The proposed measures focus on representation and call for “key entities” (e.g., studios, networks, streamers, agencies) to commit to matching the 13.4% Black share of the U.S. population and the 60 percent white share of the population in hiring across all levels.
Also: McKinsey found that Black-led projects are still consistently underfunded, despite the evidence that they outperform other properties in ROI.
