There’s been too many tie-ups in the media industry and too little independent production, though the latter may be changing, according to IAC/InterActiveCorp Chairman Barry Diller.
Diller, in Sun Valley, Idaho, for the opening of the annual Allen & Co. media conference, told reporters Wednesday he expects more mergers in the cable industry and the number of major movie studios to contract to under six, which he said was worrisome for creativity.
“You’ve got so much more consolidation and few decision makers so I think that is not so good,” Diller said.
Yet, the growing number of Internet-based video services, including IAC’s Vimeo, is providing content creators with new platforms where they can bypass traditional distributors, Diller said. The U.S. paid video market has grown to $100 billion, and Vimeo, which specializes in independent videos and documentaries, is seeking a larger share of that. The service has more than 280 million monthly users and about 710,000 paid subscribers.
“You’ve got essentially more buyers than you’ve ever had,” Diller said, referring to the TV networks and online outlets that are acquiring video programming. These services “will allow creators for the first time to not be dominated by distributors, an all-together healthy condition,” he said.
Asked if the internet giants might be potential suitors in the media industry, Diller said he didn’t think so, and that such purchases would be “at their peril, actually.” He didn’t elaborate.
Diller arrived at the summit alongside his wife, designer Diane von Furstenberg. Others who came to hear early presentations included Facebook Inc.’s Chief Operating Officer Sheryl Sandberg, 21st Century Fox Inc. Chief Executive Officer James Murdoch, his brother Lachlan Murdoch, co-executive chairman of Fox; Viacom Inc. Vice Chairman Shari Redstone, Apple Inc. CEO Tim Cook and Walt Disney Co. CEO Bob Iger.
