When it comes to diversity, inclusion and representation, Hollywood is nowhere near where it should be, but we are seeing progress. However, there are many blind spots that have been neglected and cracks in the foundation that are growing more and more each day. If you don’t fix them, the industry will have more problems than it can fix – one of which is the devaluation of projects led by Black.
McKinsey & Company released a study on the film and TV industry that is not so surprising, but it is very revealing when it comes to the work that needs to be done to achieve equality in front and behind the camera. The survey is the first integrated view of the data and reveals the many barriers that black talent encounters in the film and TV production ecosystem. It also illuminates the economic impact of these inequalities and offers solutions to reinforce inclusion.
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The company analyzed data from 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 industry talents, including Franklin Leonard of the Black List.
The survey found that media and entertainment are a key industry, with revenues of nearly $ 150 billion each year. That said, Hollywood has the potential to earn an additional $ 10 billion in annual revenue – which is almost 7% more than the initial amount – by addressing racial inequalities. Specifically, McKinsey found that projects led by Black have been consistently underfunded and undervalued, although there is clear evidence like the day that they outperform other properties with respect to their return on investment. This is in line with a report by the UCLA Center for Scholars and Storytellers, entitled “In addition to checking a box: a lack of authentically inclusive representation has box office costs”, released in October 2020.
In addition, the term “representation is important” continues to ring true on the screen and behind the scenes. Black talent is underrepresented across the industry, especially in off-screen roles, as a producer, director and writer. The only caveat here is that there is significant representation in these roles if at least one senior production member is black. Other than that, the talent of blacks behind the camera has not improved in the past 15 years.
Looking at positions of creative control, the survey shows that less than 6% of Hollywood film writers, directors and producers are black.
When it comes to talent in front of the camera, the study found that new black actors are significantly less likely to make their mark in leading roles than whites. In their first 10 years of work, emerging black actors get an average of 6 leading roles, while their white colleagues get 10.
McKinsey also unveils the concept of a “black tax”, a fee that black film and TV professionals generally need to pay. This “tax” can be considered literal or a metaphor where black professionals have to fight – or pay out of pocket – for what others can take for granted, or need to defend on their own greater racial equality. This is an unfair burden that falls into the hands of black or creative talents who could be honing their craft and focusing on their own careers.
At the top of the Hollywood food chain, there is a serious under-representation of blacks in decision-making and leadership roles. Black professionals occupy few C-suite executive positions across the industry. To put it in context, the study found that 87% of TV executives and 92% of film executives are white. The film industry, in particular, remains disproportionately white, ranking second among industries and behind sectors such as energy and finance. In addition, the agents and executive staff of the top three talent agencies in the industry were about 90% white – and the partners in these agencies were 97% white.
In order to drive change, break the hidden barriers that reinforce the racial status quo in Hollywood’s troubled ecosystem, McKinsey offered four steps that streaming companies, studios, agencies and other industry players can take to promote racial equity in entertainment and beyond. On the one hand, companies need to ensure diverse representation – especially among talent and off-screen executives. Second, there is a need to increase transparency and accountability. Third, these companies need to seek and financially support a wide range of black stories. And finally, these institutions must collaborate and create an independent defense organization to coordinate action across the ecosystem.
To read the full McKinsey study, click here.