By David Bauder
CBS says that Stephen Colbert’s decision to end late-night comedy show is financial rather than political. But even with ample skepticism about the explanation, there is no denying that economics is not working in Colbert’s favor.
The network’s bomb announcement that “Late Show” will end in May next year late Thursday will take away President Donald Trump’s most well-known television critic and the genre’s most popular entertainment program.
The decline in economic health in the television industry means that similar hard calls are already being made in character and programming. There are unique factors to consider in the late-night genre.
In 2018, broadcasting networks recently won an estimated $439 million in advertising revenue for late-night programs, according to advertising company guidelines. Last year, that number fell to $220 million.
Once a draw for a young man, now they turned their backs
Late-night television was a special draw for young men and was considered the most difficult and most valuable demographic for advertisers. More and more, these viewers are turning to streaming services to watch something else in full or catch the highlights of late-night shows.
More broadly, streaming services are undergoing highly predicted takeovers of viewers. Nielsen Company reported that for the first time in the last two months, the first person to consume programming on services such as YouTube, Netflix, and more than ABC, CBS, NBC, or cable networks.
The network and streamers spent about $70 billion on entertainment shows and $30 billion on sports rights last year, said Brian Wieser, CEO of Madison & Wall, an advertising consultant and data services company. Live sports are the most reliable magnet for viewers, and the cost of that right is expected to increase by 8% per year over the next decade. With TV audiences in general declining, it is clear where savings must come from.
Wieser said he doesn’t know if Colbert’s show will benefit CBS and parent company Paramount Global, but he knows the direction it’s heading. “Television’s economics is weak,” he said.
In a statement announcing the cancellation, George Cheeks, president and CEO of Paramount Global, said, “This is a purely financial decision against the challenging late-night background. It has nothing to do with the performance of the show, the content, or any other issues happening at Paramount.”
The problem with the cheek is that not everyone believes him.
Colbert is a relentless critic of Trump, criticizing Paramount’s decision to settle Trump’s lawsuit against CBS in a “60-minute” interview with Kamala Harris earlier this week. He called Paramount’s $16 million payment “a big fat bribe.”
On Friday, the American Writers Guild called for an investigation into whether the New York Attorney General’s cancellation of Colbert was a bribe.
With CBS’ decision, this has become a pivotal week for the future of television and radio shows. Congress stripped PBS and NPR of federal funds, threatening the future of those stores’ shows.
Journey Gunderson, executive director of the National Comedy Center, called for the decision to end Colbert’s show The End of and.
“Late night television has historically been one of the most accessible platforms for comedy in comedy, and this is where commentary meets the community every night,” Gunderson said. “This isn’t just the end of the show, it quietly removes one of the few remaining platforms for daily comedy commentary.
Trump celebrates Colbert’s end mise
Trump, who previously called on CBS to end Colbert’s contract, celebrated the upcoming end of the show. “I love Colbert being fired,” the president wrote about the true society. “His talent was even less than he appreciated.”
Some experts questioned whether CBS could have explored other ways to save money with Colbert. NBC, for example, cut costs by eliminating the band at Seth Myers’ late-night show and reducing Jimmy Fallon’s “Tonight” show to four nights a week.
Instead of running until next May, CBS could have saved more money by quickly cutting off the show. Again, Colbert continues to work until his contract is gone. CBS would have had to keep paying him anyway.
CBS recently cancelled its “After Midnight” show that chased Colbert. But the network showed earlier this year that the show was ready to continue with the show until host Taylor Tomlinson decided he wanted to leave.
“It’s a very sad day for CBS that they’re coming out of the late night race,” Andy Cohen, host of Bravo’s “What What What Happes Live,” told The Associated Press. “I mean, they turn off the lights after the news.”
Colbert said that if he wants to continue past May next year, Weezer said he could find a streaming service that would be willing to pay him. But the future of late-night comedy about entertainment networks is truly at risk. In fact, Trump may last longer than his most intense comic critics. John Stewart works one night a week at Paramount Comedy Central’s “Daily Show.”
ABC’s Jimmy Kimmel was chided on social media by Trump on Friday — “I’ve heard Jimmy Kimmel is coming next” — has signed a contract that goes away again next year. Kimmel, 57, was openly curious in various interviews before signing his latest three-year contract extension. He has been hosting shows since 2003.
“I have a moment to go and I can’t do this anymore,” Kimmel told Variety in 2022. It’s a very complicated thing… I’m not going to make this forever. ”
Colbert, Kimmel and Stewart were nominated for Emmy Awards this week.
Liam McEwan, an AP journalist in Los Angeles, contributed to this report. David Bauder writes about the intersection of media and entertainment on the AP. Follow him at http://x.com/dbauder and https://bsky.app/profile/dbauder.bsky.social.
Original issue: July 18, 2025, 7:54pm EDT
