Netflix is too far ahead for Hollywood to compete, Diller says

Barry Diller

With a market cap of $85.46 billion and an annual content budget of over $7 billion, Netflix is now beyond the competitive punching weight of most traditional programming conglomerates, says IAC chief Barry Diller.

“They are so far ahead of everyone else, it’s impossible to compete with them,” Diller said, speaking at the Wall Street Journal’s WSJ D.Live conference in Laguna Beach, California. 

“The only viable competitor to Netflix was Amazon. … That’s a business model that entertainment has never had to compete with.”


Like this story? Subscribe to FierceVideo!

The Video industry is an ever-changing world where big ideas come along daily. Cable, Media and Entertainment, Telco, and Tech companies rely on FierceVideo for the latest news, trends, and analysis on video creation and distribution, OTT delivery technologies, content licensing, and advertising strategies. Sign up today to get news and updates delivered to your inbox and read on the go.

Netflix’s primary goal is to sign up more subscribers, both internationally and domestically. Amazon wants to drive its retail business. These are very different objectives when compared to trying to pump up Nielsen and comScore ratings. 

RELATED: Amazon, Netflix, Hulu threaten TV business with loss-leader strategies, FX’s Landgraf says

Diller’s comments echo concerns expressed over the summer by FX President John Landgraf, who said the loss-leader strategies of the major SVOD services present a competitive problem for his network. 

“Understand that a good share of [original series] programming is being produced at a loss, in the belief that it will drive a massive shift in the share of consumption that will swamp competitors,” Landgraf said.

Of course, Hollywood programming conglomerates used to respond to competitive threats by purchasing them. 

“Guess what? They ain’t buying Amazon, and they are not going to buy Netflix,” Diller said.

Suggested Articles

CBS and Viacom have officially set the executive team that will lead their digital services including CBS All Access, Showtime and Pluto TV.

The FreeWheel Council for Premium Video is calling for the adoption of a universal standard for managing cross-platform ad campaigns.

Roku is rolling out a discounted bundle deal for its users that buy both Showtime and Starz subscription streaming services on the Roku platform.