At CES, Barry Diller predicts a 'profound dislocation' in the media world

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Consumers will continue to choose commercial-free content, making it more difficult for advertisers to connect with audiences, warned the IAC chairman.

In the next 10 years, Barry Diller says to expect consumers to have even more control over how they pay for and receive content, leaving traditional TV and movie studios in the lurch.

Speaking during a keynote on Thursday, the opening day of the Consumer Electronics Show in Las Vegas, the chairman of Expedia and senior executive of IAC, discussed the evolving state of media and how advertisers and marketers should embrace new direct-to-consumer channels.

According to Diller, streaming channels such as Hulu, Netflix and Amazon Video will create a "profound dislocation" in the media landscape in the next decade. Audiences, he said, are flocking to outlets where they can get the content they want without commercial interruptions.

"This is thought to be the best year for content, and most of that content is not on linear television and broadcast networks," said Diller. "With so much quality programming appearing elsewhere, a lot of people, most people I think, are going to opt for commercial-free television."

Traditional ad-supported TV will become "endangered," making it harder for advertisers to reach the kind of audiences they want. "You’re going to be advertising to people who can’t afford your goods," he said because it’s likely that those who can afford the products will pay for content that comes without ads.

As for movies, Diller, who once ran Fox Broadcasting Company and Paramount Pictures, said creating a movie is "hardly a good business proposition," since a blockbuster needs to make $500 million to be successful. "The fact that we get any good movies is almost a miracle," he said. The only company that can continue to work in this nature, he said, is Disney.

Still, regardless of the platform, Diller said advertisers have to pay close attention to the content they are associating with. Sponsored content, he said, is especially "worthless drivel" and a "sham." "I think it is kind of a weigh station that, over time, will disappear, sorry BuzzFeed," he said. "It is a contradiction in terms. Sponsored content is either not content, or not sponsored. It cannot really be both."

Advertisers have to find better ways of reaching consumers, said Diller. "If you are really a marketer you have got to get deep into the swim of this whole new world," he said. "You've got to really tread water until you get an idea. It gets down to something really simple: how do present a product or a service in a way that will appeal to people."