Latinos See More Movies Than Anyone. Why Is Hollywood Ignoring Them?
May 15, 2024
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Camilo Becdach, a partner at McKinsey, discusses the untapped potential of Latinos in Hollywood, estimating a $12-18 billion annual revenue loss due to underrepresentation. They explore barriers faced by Latinos in the industry and offer solutions. Matt predicts the box office performance of a John Krasinski-directed animated film at the end.
Latinos' underrepresentation in Hollywood leads to a $12-18 billion annual revenue loss, despite being avid filmgoers.
Increased Latino representation on screen correlates with a 60% revenue boost, underscoring economic potential in diverse casting.
Deep dives
The Importance of Latino Representation in Hollywood
Despite comprising 19% of the US population and driving 24% of box office ticket sales, Latinos are significantly underrepresented both onscreen and behind the scenes in Hollywood. While Latinos see more movies annually than white Americans, they hold only 5% of leading roles and jobs in the entertainment industry, leading to a significant financial loss. A McKinsey study estimates that Hollywood loses $12-18 billion in revenue annually due to the lack of catering to the Latino audience.
Financial Opportunities and Impact of Latino Representation
The study emphasizes the economic opportunities linked to Latino representation, citing that films with Latino talent perform approximately 60% better in revenue. The analysis, derived from research covering over 10,000 movies and 20,000 shows, stresses the financial gains when Latinos are involved in critical roles on screen. Despite progress in recent years, challenges persist in allocating sufficient marketing and production budgets to projects featuring Latino talent.
Challenges in Hollywood's Approach to Latino Representation
The discussion highlights the slow shift in Hollywood towards embracing Latino representation, attributing the reluctance to factors like underestimating Latino audience influence, an absence of diverse decision-makers, and a risk-averse culture in greenlighting innovative projects. The conversation underscores the importance of understanding Latino stories and diversifying content to attract broader audiences globally, calling for a shift in mindset and investment strategies within the industry.
Matt is joined by Camilo Becdach, a partner at McKinsey, to discuss how improving on-and off-screen representation of Latinos could generate billions of dollars in new revenue for the film industry. Latinos are the most avid filmgoers per capita in the United States, and Camilo argues that Hollywood is leaving $12-18 billion on the table every year by underrepresenting Latinos on and behind the screen. He also outlines the barriers at the executive level confronting Latinos in entertainment, and what the industry can do to fix this (02:39). Matt finishes the show with an opening-weekend box office prediction on the John Krasinski–directed animated film ‘IF,’ starring Ryan Reynolds (22:42).
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