• by Karla Fernandez Parker , Columnist, March 15, 2021

Netflix commissioned a comprehensive study, led by the University of Southern California Annenberg Inclusion Initiative, of its 2018-19 season to examine the diversity of its original U.S.-produced films and series.

The study revealed that Netflix is doing a great job of both featuring women in starring roles and triples the Hollywood industry rates, 23.1% vs. 7.6%, for women directors.

But when it comes to ethnic diversity, things were not so representative of the diversity in the U.S. -- especially among Hispanics. Only 4% of leads/co-leads in film were Hispanic, vs. their representation as 16% of the U.S. population. For series, it was even worse at only 1.7%. When it comes to the creatives involved in making Netflix films and series, there was only one Hispanic film director/writer. Of series creators/producers, Hispanics comprised only 3%.

Netflix has announced an unprecedented commitment to increase the diversity of its films and series shows, with a $100 million investment over the next five years. It will work with external organizations that have produced strong results helping underrepresented communities succeed in show business (TV and film industry). These partner organizations will help Netflix to identify, train and provide job placement for emerging talent in the U.S. and globally.

Meanwhile, advertisers need to do an audit of their diversity spend and representation as well. The Black Lives Matter movement, which took hold in 2020, helped push more Black and mixed-race families into traditional TV and print advertising.

The emphasis on digital advertising has been at the expense of diversity, however -- especially Hispanic-specific spend, which has decreased in the past decade. The top U.S. media markets -- Los Angeles, Phoenix, Dallas/Ft. Worth, Houston, San Antonio, Chicago, New York, Washington and Miami -- all have significant Hispanic populations. The Hispanic population reached 60.6 million in 2019, a 58% increase from 2000.

The fundamentals of the Hispanic market should be key drivers for advertisers to capitalize on a younger population  improving their educational attainment with growing college rates. According to a report by the Selig Center for Economic Growth at the University of Georgia, Hispanic spending power was $1.5 trillion in 2020, a 212% growth rate from the prior decade. With larger households, Hispanics also have above-average spending in key categories like cell phones, apparel, baby items, and food at home.

While Netflix’s noble effort will have ripple effects across Hollywood, I am hopeful that advertisers will see that they need to do more to reach this lucrative market and that people want to see themselves represented to connect with brands. It’s just too bad that Netflix doesn’t accept ads!