Why Barry Diller Is No Dummy

When it comes to investment geniuses, there is a short list of people who have succeeded over many decades. When it comes to media investing geniuses, that list gets even shorter. It really comes down to the legendary Dr. John Malone of Liberty Media, Rupert Murdoch of Fox, and Barry Diller — now chairman and senior executive of IAC/InterActiveCorp, and the chairman and senior executive of Expedia Inc.

So when any of these guys talk media, it behooves conservatives to listen — even if Diller is left-of-center politically. Diller made comments at the 2017 Consumer Electronics Show last week that should be of great interest to conservatives looking for a stronger footing in the culture wars.

Diller correctly theorized that movies have become an increasingly cumbersome business model, in which studios are forced to make tentpole films that must gross half a billion dollars just to break even.

Of particular note were his thoughts on consumer curation in media selection. Diller correctly theorized that movies have become an increasingly cumbersome business model, in which studios are forced to make tentpole films that must gross half a billion dollars just to break even.

Calling studio films “hardly a good business proposition,” Diller said from the stage that new media avenues will create a “profound dislocation” in the landscape of content.

Jumping off from this concept, we turn to the possibility of increased opportunity for content with conservative values. Since new media distribution is now open to anyone capable of generating an audience, that in turn should facilitate more of the content that conservatives have long clamored for Hollywood to produce. Although the floodgates haven’t exactly opened yet, we are seeing the beginnings of a new wave.

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Financing, of course, has always been the bugaboo for any producer, regardless of ideology. However, crowdfunding platforms have democratized that process. A good sales pitch for the right content, with the right people involved, can raise modest financing. With the costs of production having dropped precipitously thanks to digital cameras, it also doesn’t take as much capital as it once did to produce content.

That opens the doors to conservatives who have been disenfranchised by the entrenched liberals in Hollywood.

The film “Gosnell: America’s Biggest Serial Killer,” directed by Peabody Award-winning international film and television star Nick Searcy, raised $2.2 million in a mere 27 days via crowdfunding in 2014. The project was jettisoned by Kickstarter because the site flagged the film’s content, so it moved to IndieGoGo. The attempted censorship galvanized the conservative base — which is exactly what needs to happen for all conservative content of quality.

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Podcaster and outspoken right-of-center commentator Adam Carolla also pulled in $1.45 million through crowdfunding in just 32 days for his movie, “Road Hard,” in 2013.

So the capital is there, and it is up to conservatives to get behind the media they have been demanding. We’ve already seen this base get out and support faith-based independent projects, creating hits out of smaller budgeted fare like “God Is Not Dead” and “War Room.”

The groundswell for some of this content has been impressive, and in many cases, the content isn’t even all that good. Imagine what is possible with really solid pieces of content that tell great stories and have conservative values, but don’t beat the audience over the head.

Yet Diller also expounded on issues facing television. “This is thought to be the best year for content, and most of that content is not on linear television and broadcast networks. With so much quality programming appearing elsewhere, most people are going to opt for commercial-free television.” He sees ad-driven television becoming increasingly irrelevant because people will be more likely to spend disposable income on ad-free content like subscription services rather than the products commercials pitch.

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This is a critical insight. Movies are one thing, but streaming television programming and web series are a whole different beast, and even easier to make and distribute — even without crowdfunding. It all comes down to the same formula: telling good stories using good talent, both of which are in abundant supply in Los Angeles alone. High-end cameras can be purchased or rented for little, computer effects technology makes it easy to shoot scenes in any virtual location, post-production can be done on a Mac laptop, and distribution is as easy as uploading to YouTube. Conservatives can then champion and propagate the content via social media.

Nothing would be better, of course, than a bevy of conservative millionaires stepping up and funding a studio. They haven’t stepped up until now because of the poor business models for producing content. What they haven’t realized is that massive underserved audiences exist in America, ready to pay for that content and view it on their iPhone, if need be.

Barry Diller is no dummy. He sees ongoing fragmentation in the mass media, and it is up to conservative content producers and audiences to get involved.