If you would like to hedge your bets on mass media, Comcast is your very best decision according to IAC/InterActiveCorp and Expedia chairman and senior executive Barry Diller.
“Of all those companies, Comcast may be the most beautifully positioned because they are really about the distribution side in a significant way, and they’re on the production side also in a substantial way,” Diller told CNBC’s “Electric power Lunch” at the web Association’s Virtuous Circle Summit in Monday. “Whichever one you guess on for having the ability to grow in the time when big technology corporations dominate almost anything, that is clearly a pretty good bet.”
The era of a small number of traditional media companies dominating the scenery has ended as more technology giants get in the game, Diller said. Existing mass media companies can nonetheless survive, but they’ll never have the monopoly over entertainment and advertising while Facebook and Google contain such large user bases.
Cord-trimming is less of a good risk for companies like Comcast, Diller explained. If people stop buying its cable bundle, it nonetheless owns the info pipeline.
Diller as well applauded Disney’s current strategy of investing in methods to bring its content direct to customers through streaming companies and moving its content off other services like Netflix. It’ll need a large amount of original content to draw it off hence reports Disney was thinking about buying almost all of 21st Century Fox make sense, Diller said. However he added he has no idea if the offer will take place.
Note: Comcast owns CNBC parent company NBCUniversal.