Basically, its a sketch where a movie is being pitched to a production company in hollywood (I'm thinking a movie that has come out and that everyone knows - for the purposes of this lets say 'The Matrix' for the sake of this paragraph) and keeps getting shot down because its racist or sexist. As such, you see the story getting warped in ridiculous ways (so Morpheus beats Agent Smith because we can't have black people getting oppressed by white people, and the Oracle is an upbeat CEO of a multinational who NEVER enters a kitchen or bakes... and she's not allowed to rap under any circumstances, and all the explosions must have an equal amount of black and white in their colour make-up (and not too much ash coz it gives the colour black, and therefore black people, a bad name)). So coz the movie has come out, its obvious that the movie doesn't go through this production company, so possibly the punchline can be something like
"Wait... this is an action movie?"
"Yes?"
"Sorry, we don't do action movies."
(this is after the writer has given a load of consessions and is somewhat relieved that they're finally taking on his script... and of course would be funny).