While much of the “new IAC” relies on advertising revenue, Diller declared at the conference that strictly relying on advertising as a business model is not sustainable. “I absolutely believe that the Internet is passing from its free phase into a paid system,” he predicted (though, keep in mind, Diller did say he doesn’t like to predict). “Inevitably, I promise you, it will be paid. Not every single thing, but everything of any value. Again, take commodity away from it.
