June 8, 2001
Boom Town Readers Praise, Criticize Diller's Perspective on Web's Future
Kara Swisher

Readers respond to columnist Kara Swisher's recent column about USA Networks Inc. Chairman and Chief Executive Barry Diller's perspective on the future of the Web.

Andrew Susman, chief executive officer, Studio One Networks: It's hard for me to understand how someone as wise and rich as Barry Diller can be so tentative about the power of the Internet. Users go to the Internet for information and not entertainment ... at least at the moment.

Barry, with many others, tends to evaluate the potential of the Web as a sales medium ... a new dimension in direct marketing. The true value of the Internet lies in its ability to engage visitors on subjects they are interested in through imaginative content.

It is now possible for a company to attract specific and desired demographic targets to their brands through custom content. In many cases user visits to selected sites average 12 to 15 minutes, a number unheard of in traditional media. It's happening now.

Kara responds:

You have touched on one of the bigger debates raging on across the Internet landscape these days: What exactly does the consumer want, and, more importantly, what will he or she PAY for.

Mr. Diller has decided to focus on the sales and marketing end of it, providing services for which he can charge. Ticketmaster is the best example of this and perhaps a perfect business for the Internet.

Last week, for example, I forked over about $7 to Mr. Diller, when I bought Mary Chapin Carpenter tickets on the site. It also provided me a cornucopia of information about the concert, her music and also offered me a range of related services, such as recommendations on where to eat and the name of a car service that could presumably whisk me to the venue. Even though I passed on the limo (I have no class), I did make a dinner reservation at a nearby restaurant.

The fate of imaginative content is another issue altogether, especially as several such excellent sites (Salon.com, TheStreet.com) have struggled to make a viable business out of it. Too many have relied too heavily on ads to make it work, while others (such as The Wall Street Journal Online) are focusing more on subscriptions.

How all this plays out is still in flux, but the future of online content will surely be different from their dead-tree competitors.