Hollywood embracing diversity could boost revenue by $10 billion

Black-led projects have been un­derfunded and undervalued, despite often providing a better return on investment, McKinsey & Co said in a report on Thursday

Black talent is underrepresented across the film and television industry, and it’s costing Hollywood billions.

So says McKinsey & Co, which found consumers might spend as much as $10 billion more, or an additional 7 per cent, if film and TV projects were more racially diverse. Black-led projects have been un­derfunded and undervalued, despite often providing a better return on investment, it said in a report on Thursday.

“Executives should aspire for even higher upside as audi­e­n­ces become more diverse and the growth in demand for diverse content far outstrips supply growth,” said the report.

Hollywood studios have for years produced films and