I had a conversation a while back with a friend about how “Hollywood” tries to push a “liberal agenda”. I argued that “Hollywood” does not really care about a “liberal agenda”. Instead, they simply want to make money on a “liberal agenda”.
I used the following thought experiment to prove my point.
Suppose you are a “greedy television executive”. According to your internal statistics, in the last fiscal year, liberals accounted for 53% of your ad revenues and conservatives 47%. Further, suppose liberals have a click-through rate 8 times higher than conservatives.
This means that liberals engage with your site more than conservatives, even though you essentially make the same amount of money from both demographics.
Now, let me present you some extra information which taken together significantly change the implications of that 53%.
First, those between the ages of 18 to 35 click almost all your ads.
Second, that sub-population makes 12% of your total population
Third, within that sub-population, males are 8%
Multiplying these percentages reveals that liberal males between 18 and 35 is 1% of our population.
This means that 1% of your user base generates close to 53% of your revenue. As a consequence, someone inside that group can make you 26 times more money than someone outside that group.
26 TIMES MORE MONEY!
Now, suppose that you — the “greedy television executive” — have 1 million dollars to spend on generating content. You can “be objective” or “pander to a group”.
What do you do?
I’ll let you think about that.