Barry Diller, President and CEO of IAC/InterActiveCorp.
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If the dual strikes by Hollywood’s screenwriters’ and actors’ unions are not resolved, there will be “devastating effects if not resolved soon.” CAI and Expedia Chairman Barry Diller said in an interview on CBS’s “Face the Nation” Sunday.
diller, former paramount images CEO, predicted a ripple effect if the dual attacks are not resolved quickly.
“These conditions will potentially produce an outright collapse of an entire industry,” he said.
If studio executives and trade unions can’t come to an agreement for several more months, Diller predicted, there will be fewer shows for consumers to watch, leading to canceled streaming subscriptions and reduced revenue for the company. entertainment industry. That means that by the time the strikes are resolved, there won’t be enough money to revive the programs.
However, a deal seems unlikely anytime soon, Diller said, as “there is no trust between the parties.”
He pointed to “existential issues” including the rise of artificial intelligence, about which unions have said they want information on how it will be used, as well as pay disparities between top and bottom earners in the industry.
Diller said that to alleviate that disparity, top studio executives and the highest-paid actors could take a 25% pay cut as a “good faith move” to try to “narrow the gap between the high-paid and the underpaid.” no”. “
He also suggested that there should be a “settlement deadline” of September 1.
Diller specifically addressed AI in the interview, calling it “overrated to death” in terms of the impact it will have on the jobs of writers and screen actors.
“Writers will be assisted, not replaced,” Diller said. “Most of these real performing arts, I don’t think they’re in any danger from artificial intelligence.”
Diller is more concerned about the impact of AI on the publishing industry, foreshadowing a possible lawsuit with a group of “leading publishers”, though he declined to go into details, including when a complaint might be filed.
Diller said that major artificial intelligence companies Google and Microsoft “I want to find a solution for publishers.”
But he added: “The problem is that they also say that the fair use doctrine of copyright law allows them to absorb all of this stuff. We on the editorial side don’t agree with that.”
Google and Microsoft did not immediately respond to requests for comment.
AI companies need to come up with a business model just before ingesting publishers’ copyrighted work, Diller said. He said the situation is similar to the decision by publishers to offer free access to material on the Internet during its early days, while relying on advertising revenue.
“It took 15 years to go back to the paywalls that protected publishers,” Diller said.
“I think the litigation will lead to sensible legislation here,” he said. “Unless you protect copyright, all is lost.”
WATCH: Some Hollywood execs reportedly say they’ll let striking writers ‘go bankrupt’
