A direct-lit backlight includes a diffuse reflector disposed in front of a light source. The diffuse reflector has a continuous phase material and a disperse phase material, at least one of which is birefringent, and the disperse phase material is formed into particles having a transverse dimension less than 1 micrometer for efficient visible light scattering. The continuous and disperse phases have refractive indices tailored so the diffuse reflector transmits light from the light source substantially more strongly for obliquely incident light than for normally incident light to provide bulb-hiding characteristics.