The Profitability of Racial Diversity and Gender Balance in Modern Hollywood

This paper investigates the effects of racial and gender diversity in modern Hollywood. The primary objective is to determine if an objectively measurable increase in diverse casting over the last two decades has had a positive or negative impact on profits, and a secondary objective to measure diversity’s impact on critic scores. The study utilizes data focusing on the fifty most expensive films from 2003, 2008, 2013, 2018, and 2023. The findings indicate that profit is neither positively nor negatively affected by diversity, whether in ethnicity or gender. However, movie critic ratings are negatively affected by ethnic diversity when using audience scores. No measured impact on ratings was found when considering professional critics scores.