Hollywood is leaving billions on the table by not embracing more culturally inclusive practices, according to a recent report by consulting firm McKinsey. The report highlights the potential financial gains that the entertainment industry could achieve by closing the representation gap for historically excluded groups.
The report reveals that Hollywood could stand to gain $10 billion per year by addressing Black inequity, $12 billion to $18 billion by properly valuing Latino professionals and consumers, and $2 billion to $4.4 billion by tapping into the Asian and Pacific Islander market more effectively.
Asian Americans, in particular, have significant spending power but are underserved in the media landscape. The report shows that Asian Americans earn more on average than non-Asian Americans but spend less on media. However, nearly half of API consumers surveyed expressed a willingness to spend more money and time on film and television with authentic representation.
While there has been progress in API representation in recent years, there are still challenges to overcome. The report notes that API representation in U.S.-produced content lags behind, with many API roles in American films being race-agnostic rather than reflecting the experiences of Asian Americans and Pacific Islanders.
The report emphasizes the importance of disaggregating representation data by genre, producing country, and qualitative analysis to ensure a more accurate and inclusive portrayal of the API community. By improving on- and offscreen representation, Hollywood stands to not only create a more diverse and authentic storytelling landscape but also unlock a multibillion-dollar opportunity for the industry.
In conclusion, the report makes a compelling case for Hollywood to prioritize diversity and inclusion, not just as a moral imperative but as a lucrative business opportunity that could benefit the industry as a whole.