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Dual Strikes in Hollywood Threaten to Devastate the Entertainment Industry, Says Barry Diller
The Potential Collapse of an Entire Industry
Barry Diller, Chairman of IAC/InterActiveCorp. and Expedia, warns that the ongoing strikes by the writers' and screen actors guilds in Hollywood could have devastating effects if not resolved soon. Diller, a former CEO of Paramount Pictures, predicts a domino effect that could lead to an absolute collapse of the entire entertainment industry. If the strikes continue for several more months, there will be a significant reduction in programs for consumers, leading to canceled streaming subscriptions and decreased revenues for the industry. This could result in a lack of funds to ramp up production once the strikes are settled.
The Lack of Trust Between Parties
Unfortunately, reaching a settlement soon seems unlikely as Diller points out that there is no trust between the studio executives and the guilds. There are ongoing issues such as the rise of artificial intelligence, where the guilds demand input on its usage, and the pay disparities within the industry. Diller suggests that top studio executives and highest-paid actors take a 25% pay cut as a good-faith measure to narrow the gap between highly paid individuals and those earning less. Additionally, he proposes a September 1 settlement deadline.
The Impact of Artificial Intelligence on the Industry
Regarding artificial intelligence, Diller believes that writers and screen actors will be assisted by AI rather than replaced. He dismisses the idea that AI poses a significant threat to those working in performing crafts. However, he expresses concerns about its impact on the publishing industry, hinting at a potential lawsuit with leading publishers. Diller claims that Google and Microsoft, two prominent AI companies, are willing to find a solution for publishers but highlights the disagreement on fair use doctrine and copyright infringement.
Finding a Fair Business Model
Diller asserts that AI companies must establish a fair business model before using copyrighted work from publishers. He draws parallels with publishers' decision to offer free access to material during the early days of the internet and subsequently implementing paywalls to protect themselves. Diller believes that litigation will lead to sensible legislation, ultimately protecting copyright and preventing the loss of intellectual property.
With these pressing issues in Hollywood, the entertainment industry faces an uncertain future. Only time will tell if the writers' and screen actors guilds can come to an agreement with the studio executives, resolve the dual strikes, and prevent the potentially devastating collapse of an entire industry.
The Impact on a New Business
The ongoing strikes in Hollywood, as highlighted by Barry Diller, have the potential to create a ripple effect that could devastate the entire entertainment industry. This has significant implications for new businesses looking to enter the industry or those relying on the entertainment industry for their growth and success.
Firstly, the reduced production of programs due to the strikes could lead to a decrease in available content for consumers. This, in turn, may result in canceled streaming subscriptions and decreased revenues for the entire industry. For a new business relying on this industry, this means a smaller market to tap into and potentially limited opportunities for profit.
Secondly, the lack of trust between the studio executives and the guilds creates an additional barrier for newcomers. The ongoing issues related to artificial intelligence and pay disparities further complicate the situation. If these conflicts persist, new businesses might find it difficult to navigate the industry and establish relationships with key players.
Thirdly, the impact of artificial intelligence on the industry raises concerns for new businesses. While AI can assist writers and screen actors, its potential threat to the publishing industry hints at potential legal battles and impacts the availability of copyrighted material. This creates uncertainty around the fair use doctrine and copyright infringement, making it challenging for new businesses to navigate the legal landscape.
In conclusion, the strikes in Hollywood have far-reaching consequences for new businesses seeking to enter or rely on the entertainment industry. From reduced content availability to trust issues and legal complications, the uncertainty surrounding the industry's future poses significant challenges. Entrepreneurs must carefully analyze the situation and adjust their strategies accordingly to mitigate the potential risks and find opportunities for growth amidst the turmoil.
Article First Published at: https://www.cnbc.com/2023/07/16/hollywood-strikes-could-lead-to-an-absolute-collapse-iacs-diller.html