Diversity-driven success overlooked in film funding

The stories told on screen shape perceptions and inspire change. They also reflect society's evolving identity. Understanding the diversity of those who create and star in these stories is critical to fostering an entertainment industry that genuinely mirrors the richness of the human experience. Representation in key creative roles shapes shared narratives and affects how audiences resonate with and engage with these stories, ultimately driving revenue growth.

The Hollywood Diversity Report, Part 1 highlights the undeniable link between diversity and financial success in Hollywood. In 2023, global box office revenue rose 31% to $33.9 billion, while the North American box office grew 21% to $9.07 billion. However, despite these gains, the domestic box office lags 21% behind the 2017-2019 average. The future of movie-going remains uncertain as the industry navigates the pressure of changing audience expectations and preferences, testing the industry's resilience and capacity for innovation.

The theatrical dataset mirrors this trend. The 109 English-language films in the 2023 dataset represent a 22% increase from 2022 but fell short of the 146 films in the 2019 dataset. In 2023, theatricals span 12 primary genres. Action, constitutes 27.5% of releases, dominates, followed by comedy (20.2%), horror (12.8%), animation and biography (9.2% each), and drama (8.3%). While action and horror hold steady, comedy and biography have grown, animation dipped slightly, and drama declined. Biopics and dramedies emerge as notable subcategories.

Representation in casting

Cast diversity continues to evolve. Films with over 50% BIPOC (Black, Indigenous, People of Color) casts represent the plurality of top films for the first time in 2023, which marks a significant milestone in a 13-year trend. In 2011, 51.2% of films had less than 11% BIPOC representation; by 2023, this figure dropped to 8.5%. However, actors with disabilities remain largely absent, with 61.3% of films including no known disabled actors.

Actors with disabilities did experience modest gains, increasing their share of leads to 11.3%. However, visible disabilities remain absent among top leads. Women's share of lead roles declined to 32.1% in 2023 from 38.6% in 2022, marking a significant setback. Female leads would need an 18% increase to achieve parity with male leads. Films with BIPOC leads often fall at opposite ends of the budget spectrum, either under $10 million or exceeding $100 million, reflecting a "feast or famine" dynamic.

Representation gaps persist across racial and ethnic groups. Latinx and multiracial actors remain underrepresented in all roles, while Black, Asian, Native, and Asian, Middle Eastern, and Northern African (MENA) actors are approaching proportionate representation. Gender disparities prevail; except for Latinas, women in every racial and ethnic group are underrepresented compared to their male counterparts.

Box office receipts

Despite continued disparities, box office performance reinforces the demand for diverse content. Films with 31-40% BIPOC casts achieve the highest median global box office receipts, while those with less than 11% perform the poorest. Median return on investment peaks for films with 41-50% BIPOC casts.

Audiences increasingly support diverse casts, with BIPOC moviegoers buying the most opening weekend tickets for seven of the top 10 films in 2023. Female audiences account for most ticket sales for three of the top 10 films, while 18- to 34-year-olds dominate ticket purchases for six of the top 10 films.

Audience preferences align with representation trends. Films with diverse casts achieve higher box office performance across global, domestic, and opening weekend metrics. Nine of the top 10 global box office films feature cast members with over 30% BIPOC representation, demonstrating the commercial success of diversity. The data underscores the importance of reflecting America's increasingly diverse audience in theatrical releases.

Streaming genre trends and budget allocations

The 2024 Hollywood Diversity Report: Part 2 focuses on the top 100 English-language streaming films from 2023. It offers insights into genre trends, budget allocations, and representation among leads, directors, and writers. As outlined in Part 1, the theatrical film industry registers incremental recovery in 2023, but streaming remained dominant despite studios reducing original content production. This strategic pullback coincided with economic uncertainties and labor disputes, resulting in 115 streaming original releases compared to 161 in 2022.

Comedy led streaming releases at 30%, followed by drama (17%) and action (14%). Notable shifts included a rise in biography films (4% to 10%) and a decline in animated features (13% to 9%). Budget distribution starkly contrasted with theatrical films: 61.3% of streaming films had budgets under $20 million, compared to 30.3% of theatrical releases. Only 3.2% of streaming films had blockbuster budgets ($100 million or more), dwarfed by 25.7% for theatrical films.

Representation in leading roles

BIPOC and women actors achieved proportional representation among leads in streaming films in 2023, marking progress since 2022. However, disparities persisted within specific groups. Latinx (8%) and Asian (4%) leads remained underrepresented, while Black (16%) and Middle Eastern/North African (MENA) leads were overrepresented. Native (1%) and multiracial (12%) actors approached proportional representation. Gender dynamics varied by group: women outnumbered men among white, multiracial, and MENA leads, while men predominated among Black, Latinx, Asian, and Native leads.

Budget disparities also reflected systemic inequities. White male leads were most likely to star in films with budgets over $20 million (57.2%), while BIPOC leads (58.6%) and White female leads (77.5%) frequently headlined films under $20 million. Women with disabilities remained underrepresented despite an increase in lead roles from 6.1% in 2022 to 9% in 2023, with no visible disabilities represented.

Directors and writers

BIPOC and women directors saw gains but remained underrepresented in 2023. Women directors faced a budget ceiling of $50 million, while BIPOC directors maxed at $100 million, with significant opportunities skewed toward white men. Among writers, similar patterns emerged. Streaming films with BIPOC and women writers featured more diverse and balanced casts, yet these groups remained underrepresented. Multiracial and MENA writers neared proportional representation. However, shares for Black, Latinx, and Asian writers fell short.

These reports underscore the ongoing evolution of Hollywood's streaming ecosystem. While strides in representation are evident, industry efforts still need to achieve inclusiveness across all facets of production. Examining theatrical and streaming releases as viewing habits evolve offers valuable insights into each platform's unique challenges and opportunities. These distinctions help illuminate how representation impacts storytelling, audience reach, and industry success across a diverse and changing media landscape.

DE&I, Diversity, streaming