Moving on a Dime

By Jeffrey Ressner

HOLLYWOOD AND SILICON VALLEY were shocked when Terry Semel became CEO of Internet portal Yahoo! in 2001. But the ex-Warner Bros. chief has led the company out of dotcom-bubble troubles to a new era of record profits. He has also done well personally, making a profit of more than $250 million on stock-option sales, according to analysis firm Thomson Financial. Semel talked to TIME's Jeffrey Ressner about technology, Tinseltown and the competition:

WHAT DO YOU MISS MOST ABOUT RUNNING A STUDIO?

I very much miss the creative process. But I ultimately decided I'd like to spend more of my time as a businessperson. At Yahoo!, I do both.

HOW IS WORKING IN SILICON VALLEY DIFFERENT FROM HOLLYWOOD?

It's younger, it's moving on a dime, it's making decisions very quickly, if not instantly, to stay ahead of the curve. I hope it's made me more interesting.

THERE'S BEEN SPECULATION THAT YOU'RE ONE OF THE CANDIDATES FOR THE CEO JOB AT DISNEY ONCE MICHAEL EISNER LEAVES.

I'm just not interested. I have a great opportunity at Yahoo!

WHAT'S THE NEXT KILLER APP?

It's going to be all about connectivity. The smoother and easier we allow people to navigate through any device at any place in the world, the better.

WHEN WILL WE SEE A REAL MARRIAGE BETWEEN TV AND PC?

It's coming in the next few years, though it may not fully mature for five years. In places like Japan, you can literally plug your PC into a set-top box, and some of what's on your computer is accessible to your television.

COULD THERE BE ANOTHER BUBBLE?

Now we're looking at real companies with real businesses that provide real services. There may be a bubble in the economy or the stock market but [not] companies like ours.

WILL SPAM EVER GO AWAY?

That's like asking if piracy will ever go away. I don't think either will ever completely go away. But we're getting better at banning spam.

WILL HOLLYWOOD STOP THE ILLEGAL DOWNLOADING OF MOVIES?

I'm a great supporter of copyrights. At the same time, it's important for all creative industries to move forward and take full advantage of the digital age. We've all learned from the music business that staying still is not a good idea.

IS MUSIC A REAL BOON FOR INTERNET COMPANIES?

For both the music industry and Yahoo!, downloading of singles is a small business. But if you offer somebody a million songs for a set fee every month, that's a much more economical way for consumers to have access and a more reliable flow of revenues to the industry.

DO YOUR OLD HOLLYWOOD CONNECTIONS PLAY A ROLE IN YOUR NEW CAREER?

Whether it's movies or television or music, relationships with executives and talent are important. As content continues to be an important part of our world, those relationships are going to be pluses to our company.