Despite the global success of Netflix’s Oscar-winning “KPop Demon Hunters,” which was directed by Maggie Kang and Chris Appelhans, UCLA’s Hollywood Diversity Report has found that diversity in streaming movies is falling overall, following in the footsteps of theatrical releases.

The bright spot in 2025 streaming titles was “KPop Demon Hunters,” which made Netflix history by remaining on the streamer’s Top 10 list for 52 consecutive weeks. The title also topped household ratings across all audience demographic groups studied, particularly women of color. However, UCLA’s report notes there were missed opportunities by not initially releasing the film theatrically.

The overall data is taken from streaming titles released in the year 2025, as well as household demographics, with people of color losing ground in all key employment categories. Leads of color dropped from last year’s share of 51% to 36%, while streaming films helmed by BIPOC fell to 23.6%. Streaming films directed by women also declined to 23.6% — the third year in a row that number has decreased. The highest-rated 2025 streaming-only movies after “KPop Demon Hunters” were predominantly from Netflix and included “Happy Gilmore 2,” “Back in Action,” “Madea’s Destination Wedding” and “Nonnas.” Films from other services included Amazon’s “Heads of State” and “You’re Cordially Invited.”

“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,” report co-founder and UCLA Entertainment and Media Research Initiative director Ana-Christina Ramón said in a statement.

These declining numbers for both on screen and behind-the-scenes representation arrive on the heels of recent UCLA reports that find audiences actually prefer films with diverse casts.

Additionally, the most-watched streaming films of the past four years (including “Encanto,” “Turning Red” and “Moana”) were all directed by young women of color — a trend that “KPop Demon Hunters” has continued as it nears its one-year anniversary on Netflix.

“With continued rollback of BIPOC representation, major streamers may lose profitability potential and audience engagement from a key segment of the market,” researchers warned in the report.

With directing opportunities for people of color shrinking, especially as the overall number of original streaming films remains down, the report notes that ad-supported platforms like Tubi are effectively bringing in multicultural audiences and giving diverse filmmakers opportunities.

“Ultimately, major studios should consider how to gain and retain brand loyalty from a population that is increasingly BIPOC,” researchers concluded.