The current IAC and Expedia Group chairman and former film and television CEO argued that the entertainment industry has lost power by being outbid by tech giants, and that Jeff Bezos has handled his National Enquirer skirmish "courageously."
Taking Amazon at an example, Diller explained, "Amazon’s business model has nothing to do with anything anybody who’s been in the entertainment business has lived with their whole lives, which is, we have one job. We entertain the folks. If they like what we do, they buy a ticket or subscribe to this or get that." Diller continued, "Amazon’s model is saying, 'If you join Prime, we’re giving you things.' ... that model, to people in the entertainment business, is like, “Oh my god, how did that happen? I don’t know how to do that one. I don’t know how. I only know how to serve my entertainment customer.”
They are not buying Amazon....So when you ask about Hollywood, what connotes 'Hollywood,' which is that that era is over and finished," he said. As a result, six movie studios have whittled down to five and now will only be "making stuff" versus "making stuff" and distributing it, he added.
"And so when Mr. Bezos bought it, I thought, well, that’s fantastic. Because I certainly know him and his sense of obligation, responsibility, quality, and he’s done a fantastic job with it. And so, the reluctance of the company and the Graham family to continue to support it and sell it to the right person was a great act of great good luck, because now, the is thriving."