Hollywood’s Revenue Could Rise To $10 Billion If Anti-Black Bias Is Addressed, Mckinsey

A new study from McKinsey says that anti-Black bias gravely affects Hollywood's revenue, and it could rise by around $7-10 billion if the industry addresses racial inequities in the world of film and television.

The research found that stories led by Black people are underfunded and undervalued in which they have classified around 40 pain points that most Black talents regularly encounter in their attempt to build their careers.

The study was prompted to the consulting giant by a former McKinsey employee Franklin Leonard and the CEO and founder of The Blacklist, with the objective that is to democratize writers' access to the industry.

 "I reached out to some of my former colleagues and said that if you're interested in studying racial inequity, one place that you can do that is Hollywood, especially because not only does that economic inequity exist within our industry, but we export and amplify stories around the world, that also then has material effects of the lives of Black people and people around the world," Leonard said.

According to the report, the industry is white-dominated, with all film executives around ninety-two percent white.

The population of Black people in the United States is roughly 13.5%, and the report says that around 6% of writers, directors, and producers in Hollywood are black, while 8% of them have one Black producer.

Mckinsey said that some key factors that challenge entry in the industry include the fact that the offer is often low or none at all in the entry-level entertainment jobs, and the research found that the industry jobs are often shared among white elite networks.

Leonard said that there sa lot of talented Black communities in Hollywood that do an extraordinary job in their craft. "One has to wonder what they'd be capable of and what Hollywood would be capable of if we actually remove those obstacles and allowed everybody to participate on a level commensurate with their ability, and frankly commensurate with their ability to deliver a return on the investment," he added.

Leonard said Black contents still deliver a better ROI by about 10% despite being underfunded, under-supported, and under-distributed. The $10 billion potential windfall could have been taken from diversity efforts that are also tied to the underrepresentation of Black talents and executives.