Not so golden: Diversity losing its shine for streaming studios – but not audiences

Netflix's Korean-inspired "KPop Demon Hunters" may have been one of the biggest films in 2025 - racking up 20.6 billion minutes of viewing according to Nielsen - but diversity took a hit on major streaming platforms, according to the latest analysis by UCLA's Hollywood Diversity Report.

Mirroring shifts in theatrical releases over recent years, streaming opportunities for people of color and women went anywhere but "Up, Up, Up," the researchers found.

"After the big numbers we saw for diversity in streaming originals just a couple of years ago, we now see the path closing for people of color and women to premiere their film on a major streamer," said report co-founder Ana-Christina Ramón, director of the Entertainment and Media Research Initiative at UCLA.

An industry-wide chilling effect

In 2025, people of color lost ground in all key Hollywood employment categories measured by the report- directors, writers, lead actors and overall cast. Women also saw drops in almost every category, and actors with known disabilities continued to be underrepresented, the UCLA researchers said.

The proportion of lead actors of color declined from 2024's high of 51% to just 36% - the first time in three years that figure fell below their proportion of the U.S. population. And the number of streaming films directed by women continued to fall, reaching a report-series low of 23.6%. Meanwhile, the share of films by white directors grew from 61.3% in 2024 to 70.4%.

For the first time since the Hollywood Diversity Report began tracking streaming releases in 2022, films featuring casts with a majority of people of color did not represent a plurality - dropping to 25.8% in 2025 from 41.0% the previous year.

These declines in diversity are particularly notable because the overall number of original English-language films also fell. In 2025, only 89 were released on major streaming platforms; the Hollywood Diversity Report usually focuses on the top 100 English-language releases.

The researchers said it is a point of concern, with previous UCLA reports having shown that major progress in representation and success was possible for women and people of color on streaming platforms, and that it may be indicative of an "industry-wide chilling effect."

"This is an industry in flux - and in reverse, especially when it comes to diversification," said Darnell Hunt, UCLA's executive vice chancellor and provost, who co-founded the report. "Unfortunately, as we've seen with theatrical films, we're now seeing the impact of this current political climate in very meaningful and concrete ways. As budgets tighten, opportunities for filmmakers of underrepresented backgrounds are always the first to be squeezed out."

What viewers want: A demand for diverse representation

"KPop Demon Hunters," the animated musical directed by Maggie Kang and Chris Appelhans, became the most-watched original film of all time on Netflix.

Infused with Korean culture and mythology, it was a success with all audience households across demographics, earning an astounding Nielsen rating of 100 points - nearly three times that of second-ranked "Happy Gilmore 2" (33.66).

"The film is a prime example of how culture circulates and how diverse representation doesn't alienate audiences," said Nico Garcia, a doctoral candidate at UCLA's School of Theater, Film and Television and report co-author. "It can bring them in."

Among viewers, people of color - especially women - were major drivers of ratings for the top original films on streaming platforms in 2025. Following previous trends, households of color were overrepresented as viewers of 9 of the top 10 streaming films and 17 of the top 20. Women were a majority of viewers of 6 of the top 10 films and 11 of the top 20.

For the first time, the UCLA researchers tracked intersectional viewership ratings within households, breaking the data into subgroups combining race, ethnicity and gender, for the top 20 streaming films of 2025. Subgroups that posted the highest ratings most often were viewers between the ages of 18 and 49 in Black households and female viewers in Latino households.

The latter group, shown repeatedly to be avid movie watchers, matched the 100 Nielsen rating for "KPop Demon Hunters," followed by female viewers in Asian households (77.33 points) and female viewers in Black households (72.85 points).

That film's success marked the fourth year in a row that the most-watched streaming release was led by a young woman of color, even as their share as leads fell below their proportionate representation.

"If studios continue to roll back representation, they're risking lost profits and lower engagement from key audiences," said co-author Jade Abston, a doctoral candidate at the UCLA School of Theater Film and Television.

The Hollywood Diversity Report has consistently shown that diversity on the big screen sells, and the researchers emphasized that "KPop Demon Hunters" had the potential for even greater box office success with a theatrical premiere.

"It was a missed opportunity for theaters," said UCLA sociologist and report co-author Michael Tran. "We've tracked how diverse films tend to succeed at the box office, here and abroad. For 'KPop Demon Hunters,' we could have been talking about record-breaking box office receipts in addition to topping the ratings."

Potential new avenues for diversity in streaming

With major streamers appearing to move away from diversity, the researchers pointed to ad-supported platforms like Tubi, which has grown in popularity, as spaces where filmmakers are starting to recapture some of the opportunity they used to find on larger platforms.

They also said they hope studios will heed the clear evidence that audiences want diversity - in race, ethnicity and gender - in the media they consume.

"These trends away from diversity in films should raise alarm and push the industry to action," Hunt said.

With streamers challenged to make their offerings profitable and keep audiences subscribed, the researchers emphasized that executives should look toward the future of the market, as America's young population is increasingly diverse.

"Kids under 18 are already majority BIPOC [Black, Indigenous and people of color]. There's no going back if a studio wants to be profitable and relevant to Gen Z and Gen Alpha," said Ramón who is also affiliated with UCLA's Latino Policy and Politics Institute. "Severing all brand loyalty now will only make it more difficult to regain long-term subscribers in the future."