“We work so hard to create suspension of disbelief and then interrupt it to sell Bounty,” 21st Century Fox C.E.O. James Murdoch said Wednesday at Vanity Fair’s New Establishment Summit, in San Francisco. The media mogul went on to outline how his industry needs to “innovate and find new and better ways” to make the future of entertainment a potentially commercial-free zone.

21st Century Fox has a number of exciting creative properties on the horizon, and Murdoch touched on everything from The X-Files reboot to The Martian, before debuting a sneak peak for the Jennifer Lawrence/David O. Russell collaboration, Joy.

“We’re in a business of ideas, of storytelling—of creativity,” Murdoch said, and, taking a gentle shot at his other J.Law property, the X-Men franchise, Murdoch followed up the Joy trailer by saying, “We love superhero movies, but you have to take more risks.”

But this being a Silicon Valley–centric summit, Murdoch had much more to say about the innovative way he and his company plan to deliver those stories to audiences in the future. While he was tight-lipped about whether Fox was planning to get into the streaming business, Murdoch was pretty firm that the future of online content would follow the model put in place by Hulu last month, when it launched its more expensive but commercial-free service. “Content is what is driving demand,” he said. “It’s available everywhere and available to customers on multiple platforms. We’ll see less advertising and more targeting.”

Audiences, Murdoch said, will become “third-party bidders” for their time, opting to pay more out of pocket to reduce or eliminate commercial interruption. “It’s an exciting prospect,” he said, “for how the business model can be more flexible.” Fox recently invested close to $200 million in TrueX Media, which, according to The Wall Street Journal, “allows Web consumers to opt to briefly interact with a full-screen, multifaceted ad rather than seeing a series of standard ads while streaming video content.”

And while Fox made headlines last month by acquiring all media rights to National Geographic Society, Murdoch was clear that he saw Fox’s future as a digital one, and that the video entertainment business will “100 percent be consumed over IP networks” in the near future. While Murdoch admitted the metrics are still in flux when it comes to monitoring who is watching content digitally, he claimed that while Snapchat might get 4 billion daily views, by the same viewability metrics, Fox saw more than 91 billion views from the Women’s World Cup final. (Murdoch was referencing a blog post by GroupM’s Rob Norman.)

But metrics aside, Murdoch said the key to storytelling is how much empathy you can create. Touching briefly on the future of film and the emerging technology of virtual reality, Murdoch said that while we haven’t had our “virtual-reality talkie” yet, the immersive V.R. technology is an “empathy machine.” The only thing standing in the way of that completely immersive, empathy-driving experience? Those pesky Bounty commercials.