Barry Diller, the billionaire media mogul, said that a failure to resolve twin strikes of the writers’ and screen actors’ guilds could lead to “devastating effects” if no deal is reached soon.

Last week, a number of top movie and TV actors joined picket lines alongside screenwriters on the first full day of a walkout that has become Hollywood’s biggest labor fight in decades. It’s the first double-barreled strike by actors and screenwriters in more than six decades.

The two guilds have similar issues with studios and streaming services. They are concerned about contracts keeping up with inflation and about residual payments, which compensate creators and actors for the use of their material beyond the original airing, such as in reruns or on streaming services. The unions also want to put up guardrails against the use of artificial intelligence mimicking their work on film and television.

But Mr. Diller, a former Paramount Pictures CEO, said Sunday that the situation could compound if not resolved quickly.

“These conditions will potentially produce an absolute collapse of an entire industry,” he warned during a CBS News interview.

Also, the Alliance of Motion Picture and Television Producers, which represents employers including Disney, Netflix, Amazon, and others, has lamented the walkout, saying it will hurt thousands of workers in industries that support film and television production.

“I would call for a September 1 deadline. There’s a strike deadline. I think there should be a settlement deadline,” Mr. Diller told CBS News. “Because unless it happens by September 1, the actions and you know, of course, who cares about Hollywood, who cares about it. But the truth is, this is a huge business both domestically and for world export. And if it is—these conditions—it sounds like I’m crying to the skies. But these conditions will potentially produce an absolute collapse of an entire industry.”

However, a settlement in the near future appears unlikely, he noted. There is “no trust between the parties,” adding that there are “existential issues” including the rise of artificial intelligence, he said. Artificial intelligence, or AI, is “overhyped to death,” the billionaire said.

“Writers will get assisted, not replaced,” Mr. Diller said. “Most of these actual performing crafts, I don’t think they are in danger of artificial intelligence.”

Mr. Diller also noted that some writers’ and actors’ claims that top media executives are overpaid are also overblown.

“You have the actors union, saying, ‘How dare these 10 people who run these companies earn all this money and won’t pay us?’ While if you look at it on the other side, the top ten actors get paid more than the top ten executives. I’m not saying either is right. Actually, everybody’s probably overpaid at the top end,” he told the outlet.

The writers’ strike had already stopped much of television production, and the actors joining them immediately led to a shooting shutdown for many major films, including “Deadpool 3,” “Gladiator 2,” and the eighth installment of Tom Cruise’s “Mission Impossible” series. All are scheduled for release next year.

The writers’ strike also shut down late-night talk shows and “Saturday Night Live,” as well as several scripted shows that have either had their writers’ rooms or production paused, including “Stranger Things” on Netflix, “Hacks” on Max, and “Family Guy” on Fox. Many more are sure to follow them now that performers also have been pulled.

Los Angeles Mayor Karen Bass said it was clear that the entertainment industry “is at a historic inflection point.” She urged all parties to work around the clock until an agreement is reached. “This affects all of us and is essential to our overall economy,” Bass said in a statement.

The Associated Press contributed to this report.