A new report from the University of California, Los Angeles (UCLA) found that diversity in film has taken "a step back in theatrical films but strides forward in streaming." The report analyzed 89 English-language theatrical films that ranked among the top 200 theatrical releases for 2022 based on global box office receipts, as well as the top 100 English-language films released originally on streaming services in 2022, as determined by U.S. household rankings.

The report found that women and people of color fared far better in the streamers than in theatrical releases in every job category surveyed, which included directors, writers, lead actors, and overall casts. Women writers and cast members have also gained ground in theatrical films. Last year, 27% of writers and 41% of cast members were women, compared to 17% and 40%, respectively, in 2019. And on streaming films, women's 49% share of leads has almost reached parity with men.

The report also found that Hollywood's "conventional wisdom" - that minority-led films, or those with diverse casts, don't do well overseas - "is in fact a myth." When these films are distributed in international markets, "the world's diverse populations welcome the diverse film content just as much as domestic audiences do."

"As the film industry continues to face unprecedented uncertainty, this report identifies a path forward," said Michael Tran, a Ph.D. candidate in the UCLA sociology department who co-authored the report. "The pandemic has normalized diversity on screen, not just in theaters but at home. Audiences tuned in. If Hollywood reverses course on diversity in the theaters, they'll lose audiences to streaming and to international offerings."

Darnell Hunt, UCLA's executive vice chancellor and provost, and co-founder of the "Hollywood Diversity Report," said, "Diversity should not be considered a luxury but a necessity. Audiences of color are the bedrock of Hollywood and key to the bottom line as research shows once again that audiences prefer diverse casts."

The report noted that the minority share of the U.S. population, which now stands at 43.1%, is growing by nearly half a percent each year and will become the majority within two decades. And that will create business opportunities for those companies that best stay tuned to their audiences.

"Our research shows that diversity in the movies is just good business," said Ana-Christina Ramón, director of the Entertainment and Media Research Initiative at UCLA, which produces the annual reports. "People of color saved the theatrical industry during the pandemic, and they are key to bringing the theatrical business back to its pre-pandemic levels."

The report also found that with the exception of one Asian female film writer, "women of color were nonexistent among writers for top theatrical films in 2022," and that White female writers "also lagged far behind their White male counterparts." Among the top streaming films, White actors received 57.5% of all roles in 2022, while Black actors received 11.8%, Latinx actors received 6.4%, and Asian actors received 11.4%.

As films have become more diverse, their audiences have grown, "largely fueled by an increase in the number of people of color" choosing to watch them - which is also true with streaming films. "New evidence from 2022 continues to support findings from earlier reports in this series suggesting that America's increasingly diverse audiences prefer diverse film content in both theatrical and streaming releases," the report says. "In 2022, theatrical films with casts that were from 31% to 40% minority enjoyed the highest median global box office receipts, and films with casts that were more than 40% minority ranked second. This suggests that Hollywood's traditional assumptions that diverse films are a financial risk may be misguided.

The report also calls for the film industry to address the lack of diversity in key creative roles, such as directing and writing, which it says is a "persistent problem." "When people of color and women are missing in these roles, it's often because there is no pipeline of talented and experienced individuals who have been given opportunities to develop their skills," the report says. "It's up to the studios and networks to create the opportunities and mentoring necessary to develop the next generation of diverse talent."

The report concludes by saying that diversity is not only an ethical imperative but also a business imperative. "The data shows that audiences want to see themselves reflected on screen, and that the more diverse the cast and crew, the more likely a film is to be successful," the report says. "The film industry needs to catch up with the changing demographics of the U.S. and the world if it wants to remain relevant and profitable in the years to come."

Overall, the UCLA report shows that while progress has been made in increasing diversity in film, there is still a long way to go. The film industry must continue to prioritize diversity in all aspects of its productions, from casting to hiring, to ensure that all stories and perspectives are represented on screen. As audiences become increasingly diverse, the industry must adapt to meet their changing demands and preferences, or risk losing them to other forms of entertainment.