Barry Diller, Media Mogul, Urges 25% Salary Reduction for Hollywood Executives and Top Actors to Resolve Strikes

In an effort to address the income disparity within the industry, media mogul Barry Diller has proposed a 25% pay cut for top Hollywood executives and the highest-paid actors. This suggestion comes as TV and movie actors join screenwriters in a strike.

Diller, chairman and senior executive of IAC and Expedia, expressed his belief that individuals at the top end of the pay scale are likely overpaid. With his extensive experience in the industry, having previously served as chairman and CEO of Fox, Inc. and Paramount Pictures Corporation, Diller understands the complexities of the Hollywood landscape.

The strike, initiated by actors represented by the Screen Actors Guild-American Federation of Television and Radio Artists, is driven by concerns regarding the potential impact of artificial intelligence on job security and the effect of streaming services on residual pay. This marks the first simultaneous strike by both Hollywood unions in six decades, creating what Diller describes as a “perfect storm” that has led to an industry-wide shutdown.

Diller warns of potential long-term consequences if the strikes continue until the end of the year, suggesting that it could lead to an “absolute collapse” of the industry if a settlement is not reached before September. He emphasizes the impact this would have on the availability of programming and the subsequent reduction in revenue for movie and television companies.

However, Diller acknowledges the challenge of reaching a settlement due to the lack of trust between both sides. In an effort to foster goodwill, he proposes a 25% pay cut for both executives and the highest-paid actors to bridge the gap between highly paid individuals and those with lower incomes.

Diller also addresses concerns regarding artificial intelligence in the industry, stating that he believes the roles of actors and writers are not in danger of being replaced by AI, but rather, AI will serve as an aid in their work. He is supported by Kara Swisher, co-host of the “Pivot” podcast, who views the industry’s shift to streaming as a pivotal moment but recognizes the financial strain it places on companies.

It is important to note that while some CBS News staff are members of SAG-AFTRA, they operate under a different contract and are unaffected by the current strike.