Barry Diller just predicted the "absolute collapse" of Hollywood.
Diller - the former CEO of Paramount Pictures and the current chairman of IAC and Expedia - did so during an interview that he participated in on Sunday during CBS' Face the Nation.
There, Diller spoke about the recent strikes that are taking place in Hollywood.
It is in this context that Diller suggested that an "absolute collapse" of Hollywood could take place should these strikes continue.
Diller specifically suggested that the "absolute collapse" could take place if the ongoing strikes were to continue into the fall of 2023. Diller explained to CBS how it could happen.
What will happen is, if in fact, it doesn’t get settled until Christmas or so, then next year, there’s not going to be many programs for anybody to watch. So, you’re gonna see subscriptions get pulled, which is going to reduce the revenue of all these movie companies, television companies, the result of which is that there will be no programs. And at just the time, [the] strike is settled that you want to get back up, there won’t be enough money.
Diller, during his CBS appearance, also explained how a "perfect storm" led to this situation.
"You had, which sent people home to watch streaming and television and killed theaters," he said. "You've had the results of huge investments in streaming, which have produced all these losses for all these companies who are now kind of retrenching."
But, according to Diller, the big question now is whether an agreement can be reached to stop the strike from continuing.
According to Fox News, the strikes have been going on since at least May.
Per the outlet:
Since May, writers, represented by the Writers Guild of America (WGA) have been on strike, asking for a guaranteed number of writers per room, increased pay, and regulated use of artificial intelligence (AI) in the writing process.
Just last week, actors joined in the strike.
Actors, represented by Screen Actors Guild-American Federation of Television and Radio Artists (SAG-AFTRA) want increased minimum pay rates, increased streaming residuals and guarantees from studio and production companies about how, exactly, AI will be used. The strike has impacted the production of film and television series and is expected to cost the industry more than $3 billion in losses.
Diller, during his CBS appearance, suggested that it could be difficult for all sides to reach a settlement. Accordingly, this could prolong the strike, which, in turn, could result in the "absolute collapse" that he referred to.