Entertainment industry veteran Barry Diller issued a stark warning on 'Face the Nation,' predicting a potential "absolute collapse" of Hollywood if the ongoing writers' and actors' strikes persist into the holiday season. The former Paramount CEO painted a bleak picture of the industry's future, suggesting that prolonged strikes could lead to a significant reduction in available programming, causing subscription cancellations and revenue loss for production companies.
Diller emphasized the precarious timing of the situation, noting that the industry's financial strain would hinder its ability to recover even after a resolution is reached. He stressed the lack of trust between the negotiating parties as a major obstacle to a swift agreement.
The strikes, involving the Writers Guild of America (WGA) and the Screen Actors Guild-American Federation of Television and Radio Artists (SAG-AFTRA), have brought film and television production to a standstill. Key issues include writers' demands for fair wages, guaranteed staffing levels, and regulations on AI usage, as well as actors' concerns about minimum pay, streaming residuals, and the role of AI in their profession. The combined strikes represent the first instance of simultaneous labor action from both unions in over six decades.
Diller called for a September 1 deadline for negotiations, emphasizing the potential for devastating consequences if the situation remains unresolved. While acknowledging public perception of the strikes as internal Hollywood drama, he underscored the industry's significant economic impact, both domestically and internationally.
The IAC chairman downplayed concerns about AI replacing actors and writers, suggesting that the technology is more likely to assist rather than displace creative professionals. Regarding compensation disputes, he acknowledged the high earnings of both top executives and actors, proposing a 25% pay cut for both groups as a gesture of good faith to bridge the gap and facilitate a resolution.
