Lack of diversity in Hollywood is costing the industry billions of dollars, highlighting why diverse storytelling in Tinseltown is not only good for representation but the economy.
In a study released on Thursday from consulting firm McKinsey & Company, the television industry loses $10 billion every year by underfunding Black-led projects, despite having higher returns than other projects.
“The film and TV industry will continue to leave money on the table if it fails to advance racial equity,” the study’s authors, Jonathan Dunn, Sheldon Lyn, Nony Onyeador and Ammanuel Zegeye, wrote.
According to the study, around 92% of film executives are white and 87% are in television. This huge disparity makes it more difficult for Black-led projects and talent to be represented in Hollywood.
“Emerging Black actors receive significantly fewer chances early in their careers to make their mark in leading roles, compared with white actors, and they have a lower margin for error,” they wrote.
According to the Associated Press, McKinsey said it would provide $200 million to pro-bono work to promote racial equality. A decision came after the Black Lives Matter protests last year.