Wrap: Will the economic challenges posed by the Internet destroy Hollywood, or create new opportunities? 

Barry Diller: Television will forever be challenged by the effects of the Internet.   More than likely will be the 'creative destruction' of assets, particularly those of distribution, which have historically been based upon scarcity, and now of course, with the Internet, is a world of infinite plenty.

Wrap: What about movies?

Barry Diller: Movies will be much less affected.   Primary market, theaters, will be fine, and secondary markets will be positive over time because movies will return to a la carte from HBO subscription revenue, or from network licensing to direct payments from audiences.