Hollywood is leaving money on the table

Hollywood is leaving a lot of money on the table—up to $10 billion a year—by failing to be inclusive. McKinsey partners Jonathan Dunn, Sheldon Lyn and Ammanuel Zegeye, and consultant Nony Onyeador issued a report on the topic titled Black Representation in Film and TV.

Among the findings: the $148 billion industry is losing $10 billion by not resolving equity issues. The 7% loss is based on the consulting firm’s projection of profits in a more equitable ecosystem, one that has “[closed] the representation deficit for Black off-screen talent, [achieved] production and marketing budget parity, and [given] Black-led properties equal international distribution.”

The study found that 87% of TV executives and 92% of film executives are white; the agents and executive staff at the industry’s top three talent agencies were about 90% white — and the partners at these agencies were 97% white.

The trickle-down effect of inclusion is worth considering as well. Previous McKinsey reports say that closing the racial wealth gap could up the U.S. GDP by up to 6% by 2028.