For decades, Hollywood has been accused of not accurately reflecting the diversity of the American population. However, a recent report by the Latino Donor Collaborative (LDC) shows that the exclusion of Latinos is not only a social and cultural problem, but also a business mistake that is costing the entertainment industry billions. With a Gross Domestic Product (GDP) of $3.6 trillion and a purchasing power of $3.78 trillion, the Latino community represents a key economic force that Hollywood continues to ignore at its peril.

The LDC report reveals that major entertainment companies have significantly lost value in recent years. Between 2021 and 2025, Warner Bros. Discovery shares fell 60.57%, Paramount Global 76.06%, and Disney 34.57%. Added to this is the fact that box office revenue has yet to recover from the pandemic, down 23% compared to 2019, while the streaming business model remains unprofitable, with the exception of Netflix.

The industry seems to be missing the point: Latinos represent 24% of movie ticket sales, 29% of daily mobile TV viewing, and 24% of streaming platform subscriptions. Ignoring this audience means wasting a revenue opportunity in a sector struggling to stay afloat.

More Talent

While Latinos represent nearly 20% of the U.S. population and 25% of young people under 18, their presence in the entertainment industry remains marginal. Latinos occupy only 5.1% of lead roles in scripted series and 4.1% in unscripted programs. In film, the situation is even worse: only 1% of lead roles in theatrical films and 4.8% in streaming films. Furthermore, only 7.9% of streaming series episodes are directed by Latinos.

Paradoxically, Latino-led content has proven to be a resounding success. Series like Wednesday (Netflix), The Lincoln Lawyer, Only Murders in the Building, Bird Box, and The Mother have topped global rankings. Between 2013 and 2022, films featuring Latinos in key roles generated 58% more box office revenue than those without a Latino presence. This data reinforces that including Latino talent is not just a matter of diversity, but a profitable decision.

Advertising and Brands

Brands have been quicker than Hollywood to recognize the value of the Latino market. Companies like T-Mobile, Modelo, and L'Oréal have led their sectors thanks to strategies targeting this community. In contrast, the entertainment industry continues to focus its offerings on white audiences, underestimating Latinos, despite the fact that 84% of them consume content in English.

This imbalance has even been reflected in key media events. In the 2024 Super Bowl, of the 90 celebrities in commercials, 23 were African American and only four were Latino, with no representation on commentators, hosts, or in the halftime show. The invisibility of Latinos in these spaces could lead to a migration of advertisers to platforms that reflect their diverse audiences.

If Hollywood continues to ignore Latinos, audiences could also begin to ignore Hollywood. Young Latino audiences are migrating to platforms like YouTube, TikTok, and video games, where they find more representative content. Only 14.3% of Latinos' viewing time is spent on cable TV, while YouTube captures 15.1% of their total screen time.

The message is clear: the entertainment industry needs to adapt its strategy to the new demographic and cultural reality of the U.S. Otherwise, it will be doomed to lose relevance and, more importantly, profitability.

The LDC report estimates that closing the Latino representation gap could generate between $12 and $18 billion annually for the industry. The exclusion of Latinos is not only an injustice, but a strategic failure that is already having economic repercussions in Hollywood.

The entertainment industry is at a crossroads: either it adapts to the demographic reality of the U.S. and taps into the potential of the Latino market, or it risks becoming an increasingly irrelevant industry for an audience that seeks to see itself reflected on screen. The decision could define the future of Hollywood for years to come.