Every production company in Hollywood has faced challenges in the past year. The demand for TV and film content has significantly decreased as the industry adjusts to new standards for content volume and profitability, leading studios to cut back, streamline operations, and restructure for a different future.

Tommy Oliver , the producer-director who is founder and CEO of the Confluential Company, is working through the downturn with cautious optimism that a saner business landscape will open up more opportunities for independent players.

Oliver raised capital with Goldman Sachs a few years ago to build up the Los Angeles-based Confluential. The firm now runs a busy production services division in addition to nurturing and financing its own projects, as Oliver explains in the latest episode of Variety ‘s weekly podcast “ Strictly Business .”

“Our focus is on BIPOC stories, so we only invest in projects created by people of color. That's our sole criterion. When the industry is doing well [in Hollywood], it might be alright for us. But when things are tough, it's terrible, because these types of projects are often relegated to the back of the line. Unfortunately, we've reached a point where there's also a ‘Black tax’ on projects,” Oliver tells “Strictly Business.” “For us, it has completely altered the calculations around what's sensible and where the opportunities lie, because I'm not going to stop pursuing projects that we can be proud of. I'm not going to stop supporting the creators we should be working with, but we have to do it responsibly, otherwise we won't be able to continue making these projects.”

Oliver describes himself as a “weirdo” because he enjoys and excels at both the business and creative aspects of filmmaking. With meticulous detail — even disclosing the specific offer he received for the critically acclaimed Sundance film “Fancy Dance” last year — Oliver explains how Confluential has thrived by recognizing the value of BIPOC stories that others have overlooked. As soon as “Fancy Dance” star Lily Gladstone began generating Oscar buzz for her role in “Killers of the Flower Moon,” the perception surrounding “Fancy Dance” shifted. The film was ultimately acquired by Apple TV+.

“We understood that the film was more valuable, and so we made a deliberate choice to wait, and to acknowledge that things would change. That’s the distinction between how people assess something, whether generally or at a particular point in time, and knowing when to make a deal,” Oliver explains.

Oliver, along with his wife, producer Codie Oliver, conceived the unscripted series “Black Love,” which ran for six seasons on OWN. On the podcast, Tommy Oliver recounts a daring story involving the show's renewal for Season 2, illustrating his approach to business.

“We can be innovative in our financing. We can be strategic about it, because we can place smart bets on projects with exceptional potential,” Oliver says. “Because we know our audience. We know how to deliver creatively, and so if we're hitting the marks we need to, then we should be in a strong position, particularly if we're being responsible about it. None of this works if we're overspending. None of this works if we're not understanding the market or how things have changed.”

“Strictly Business” is Variety ’s weekly podcast featuring conversations with industry leaders about the business of media and entertainment. ( Please click here to subscribe to our free newsletter. ) New episodes debut every Wednesday and can be downloaded at Apple Podcasts, Amazon Music, Spotify, Google Play, SoundCloud and more.