Danny DeVito has weighed in on the #OscarsSoWhite controversy, saying that the systemic racism in the US is the root cause of the awards show’s perceived discrimination.

Attending the Sundance Film Festival, Danny DeVito, 71, told the Associated Press that the lack of diversity in Hollywood, and the failure to recognise people of colour for awards in the industry is linked to racism throughout the entire country.

“We’re a bunch of racists,” DeVito said. “It’s unfortunate that the entire country is a racist country.

“So this is one example of the fact that even though people were giving great performances in movies, they weren’t even thought about.

“We are living in a country that discriminates and has certain racist tendencies.

“So sometimes it manifests itself in something like this, and it’s illuminated. But just, generally speaking, we’re a bunch of racists.”

Meanwhile, fellow star actor Matt Damon says the movie business has “a long, long, long way to go” when it comes to diversity. Hollywood must do “much, much, much more” to reflect the audiences who watch movies, the best actor nominee said on Saturday.

“We’re talking about huge systemic injustices around race and gender that are a lot bigger than the Oscars,” Damon said. “They’re massive issues in our industry and in our country.”

Diversity has dominated the conversation around the Academy Awards since January 14 when the nominations revealed a second consecutive year of all-white acting nominees.

On Friday, the Academy of Motion Picture Arts and Sciences announced sweeping changes that include doubling its female and minority members by 2020.

Damon said the move is “a wonderful first step. But that’s what it is — a first step.”

In September, Damon apologised for comments he made regarding diversity in filmmaking that sparked widespread backlash, after a portion of a conversation from HBO’s Project Greenlight circulated online.