The recent bombshell announcement from CBS, revealing that the “Late Show” will conclude next May, marks the end of an era for late-night television. This decision not only removes President Donald Trump’s most vocal critic from the airwaves but also signals a significant shift in the most popular entertainment format on television. As the television industry grapples with declining economic health, similar tough decisions are already being made regarding personalities and programming, with more anticipated in the future.
In 2018, broadcast networks enjoyed an estimated $439 million in advertising revenue from late-night shows, according to the advertising firm Guidelines. However, this figure plummeted to $220 million last year. Once a major draw for young men—an essential demographic for advertisers—late-night TV has seen these viewers migrate towards streaming platforms. This demographic shift complicates monetization for traditional networks, as audiences increasingly opt for services like Netflix and YouTube, either watching alternative content or catching highlights of late-night shows.
As predicted, the rise of streaming services is reshaping viewing habits. For the first time ever, Nielsen reported that more individuals consumed content on platforms such as YouTube and Netflix than on major networks like ABC, CBS, and NBC. In the last year alone, networks and streaming services collectively spent around $70 billion on entertainment shows, in addition to $30 billion for sports rights. Live sports remain a reliable draw for viewers, with rights costs projected to rise by 8% annually over the next decade. The decline in television viewership signals that networks will need to make difficult choices regarding where to cut expenses.
In a statement regarding the cancellation, George Cheeks, Paramount Global’s president and CEO, emphasized that this decision was purely financial, driven by the challenging landscape of late-night programming. He insisted that the cancellation was unrelated to the show’s performance or content. However, skepticism surrounds this claim, especially considering Colbert’s role as a persistent critic of Trump. Just days prior to the announcement, Colbert condemned Paramount’s decision to settle Trump’s lawsuit over a “60 Minutes” interview, referring to the $16 million settlement as a “big fat bribe.”
The Writers Guild of America has since called for an investigation by New York’s attorney general, questioning whether Colbert’s cancellation was an effort to appease the Trump administration in light of the merger approval process with Skydance Media. CBS’s decision has profound implications for the future of television and radio programming, particularly after Congress stripped federal funding from PBS and NPR, jeopardizing shows on those platforms. Journey Gunderson, executive director of the National Comedy Center, lamented that the end of Colbert's show signifies the loss of one of the few remaining platforms for daily comedic commentary.
In response to the cancellation, Trump celebrated on Truth Social, stating, “I absolutely love that Colbert got fired. His talent was even less than his ratings.” Some industry experts have raised questions about whether CBS could have pursued alternative cost-saving measures. For instance, NBC has reduced expenses by eliminating the band on Seth Meyers’ show and limiting Jimmy Fallon’s “Tonight” show to four nights a week. Critics wonder if CBS could have implemented similar strategies rather than allowing Colbert's show to continue through a potentially awkward “lame duck” period until May.
Despite the cancellation, Colbert may still find opportunities with streaming services if he chooses to continue his career. However, the future of late-night comedy on traditional entertainment networks remains uncertain. Trump may outlast some of his fiercest comedic critics, as exemplified by Jon Stewart, who now works only one night a week at “The Daily Show.” Jimmy Kimmel also faces uncertainty; his contract runs out next year, and he has openly contemplated his future in late-night television.
As the landscape of late-night television continues to evolve, the cancellation of the “Late Show” stands as a pivotal moment that highlights the challenges facing traditional networks in an increasingly competitive entertainment environment.
