IAC’s Diller warns that Hollywood strikes could result in a devastating collapse

According to Barry Diller, chairman and CEO of IAC/InterActiveCorp, the ongoing strikes by the writers’ and screen actors guilds in Hollywood may have devastating effects if left unresolved. In an interview on CBS’ “Face the Nation,” Diller emphasized the urgent need for a settlement to prevent potential collapse in the industry.

Diller, a former CEO of Paramount Pictures, warned of a domino effect caused by the strikes. If an agreement isn’t reached soon, it will result in fewer programs for viewers, leading to canceled streaming subscriptions and reduced revenue for the entertainment industry. By the time the strikes are resolved, there may not be enough funds to resume production.

Diller acknowledged that reaching a settlement seems unlikely due to the lack of trust between the parties involved. He identified “existential issues” such as the impact of artificial intelligence (AI) and pay disparities as major hindrances to an agreement. Diller proposed a 25% pay cut for top studio executives and actors as a goodwill gesture to bridge the income gap.

Addressing concerns about AI, Diller dismissed the notion that it would replace writers and screen actors, stating that they would be assisted rather than replaced. However, he expressed concerns about the publishing industry’s susceptibility to AI and hinted at a potential lawsuit involving leading publishers.

Furthermore, Diller raised issues regarding AI companies’ use of copyrighted material. He argued that a fair business model should be established before AI companies can freely access publishers’ work. Diller also suggested that litigation and sensible legislation are necessary to protect copyright and prevent potential losses.

Overall, Diller emphasized the urgency of resolving the strikes and highlighted the need for trust and collaboration between the parties involved. Failure to do so could have severe consequences for the entertainment industry.