In a recent interview on CBS' "Face the Nation," Barry Diller, the Chairman of IAC and Expedia, expressed concerns about the ongoing strikes by the writers' and screen actors guilds in Hollywood. Diller, who has a background in the entertainment industry as a former CEO of Paramount Pictures, warned of the potentially devastating effects if the strikes are not resolved soon. He predicted a domino effect that could lead to a collapse of the entire industry.
Diller acknowledged that settling the strikes soon seems unlikely due to a lack of trust between the parties involved. He highlighted some of the key issues at stake, including the rise of artificial intelligence (AI) and pay disparities within the industry. To address the pay gap, Diller suggested that top executives and actors take a 25% pay cut as a good-faith measure.
Regarding AI, Diller downplayed its impact on writers and screen actors, stating that they would be assisted rather than replaced by the technology. However, he expressed concern about the potential impact of AI on the publishing industry and hinted at a potential lawsuit involving leading publishers and AI companies like Google and Microsoft. Diller argued that AI companies must come up with a fair business model that respects copyright before using publishers' copyrighted work.
Diller also mentioned the need for sensible legislation to protect copyright and expressed hope that litigation would lead to such legislation. He drew parallels between the current situation with AI and the early days of the internet when publishers offered free access to content, relying on ad revenue. It took years to implement paywalls and protect publishers' interests.
In conclusion, Diller's interview shed light on the concerns surrounding the ongoing strikes in Hollywood. While he acknowledged the challenges in reaching a resolution, he emphasized the need for trust between the parties and highlighted the potential consequences if the strikes continue. Additionally, he raised important questions about the impact of AI on the industry and the importance of protecting copyright in the digital age.