Stuart Hall’s work on culture, representation, ideology and hegemony positions Hollywood as a cultural institution informed by and informative of US social values and norms. Thus contemporary debates over Hollywood’s diversity are indicative of broader social conflicts. Empirically the article examines 2014–2015 news coverage of Hollywood to question the Hollywood paradox—the lack of diversity in film/TV production yet TV’s increasing shift towards on-screen diversity. It maps three discursive frames: Hollywood exceptionalism, economic imperatives, and institutionalized racism and sexism. The article concludes by using Hulu’s East Los High to reflect on TV’s digital turn and innovative models in production and representation.