The film and television business is a $148 billion industry, but consulting firm McKinsey & Company has found that the lack of Black-led projects costs the industry $10 billion annually.
According to the firm's study, eliminating the racial inequities in Hollywood could boost revenues by 7%. Presently, films with a Black main character or co-star receive production budgets 24% lower than budgets for films with a White lead.
"Fewer Black-led stories get told, and when they are, these projects have been consistently underfunded and undervalued, despite often earning higher relative returns than other properties," wrote the study's authors: Jonathan Dunn, Sheldon Lyn, Nony Onyeador, and Ammanuel Zegeye.
The study found that 87% of TV executives and 92% of film executives are White, while the top three industry talent agencies are 90% White. The firm also addressed the disparities between Black and White actors, finding that within the first 10 years of work for the average actor, Black actors get an average of six leading roles and White actors land 10.
Hollywood's slow progress to address racial inequality is partially due to its complex and multi-layered business with various production companies, networks, distributors, talent agencies, and other entities.
The study, spanning the years 2015-2019, was conducted over the last six months and drew on earlier research by the University of California, Los Angeles, the University of Southern California and Nielsen. The BlackLight Collective, a coalition of Black executives and talent in the industry, worked with McKinsey researchers. The company also interviewed more than 50 executives, producers, agents, actors, directors, and writers anonymously.
Look above for additional data from the study.
Source: McKinsey & Company
