Fresh report suggests that Hollywood could benefit by addressing current disparities and grow economically by doing so.
A new analysis suggests that Hollywood sacrificed $49.4 billion over roughly a decade by not engaging the Black American community more on industry projects.
According to a fresh report by Creative Investment Research, the calculation measures what Tinseltown gives up by undervaluing projects geared toward diverse audiences. The finding also surmises the film industry loses $15.3 billion annually by not partnering more with Black filmmakers, studios, and their audiences.
William Michael Cunningham, an economist and owner of Creative Investment Research, told BLACK ENTERPRISE his firm’s report suggests that Hollywood’s economic performance is intrinsically linked to its ability to diversify and include more representative content and creators.
“By addressing current disparities, the industry not only stands to gain economically but also to secure a more sustainable and innovative future.”
To quantify the revenue impact of increased diversity in Hollywood, Cunningham declares his firm’s analysis broke down several identified areas. They include audience expansion, global market reach, ancillary products, risk mitigation, longevity and loyalty, and brand value enhancement.
He proclaims the largest impact could come from risk mitigation through diversity. Cunningham stressed that the industry could benefit substantially by avoiding box office flops through more consistent audience engagement with diverse content.
He is also upbeat about the prospect of global market reach. Films with diverse casts and culturally resonant stories, like “Black Panther,” have shown the ability to significantly increase box office receipts.
Further, he claims expanded audience engagement and increased consumer spending on ancillary products in the overall U.S. merchandising and entertainment markets might add $6 billion in revenue.
Another area Cunningham cites is the longevity and loyalty of d verse content. He projected syndication, reruns, and streaming rights can add significantly to a film’s lifetime revenue.
Source: Black Enterprise
