Did money or politics cause Colbert cancellation? Either way, the
economics are tough for TV
[July 19, 2025]
By DAVID BAUDER
CBS says its decision to end Stephen Colbert’s late-night comedy show is
financial, not political. Yet even with the ample skepticism about that
explanation, there's no denying the economics were not working in
Colbert's favor.
The network’s bombshell announcement late Thursday that the “Late Show”
will end next May takes away President Donald Trump’s most prominent TV
critic and the most popular entertainment program in its genre.
The television industry's declining economic health means similar hard
calls are already being made with personalities and programming, with
others to be faced in the future. For the late-night genre, there are
unique factors to consider.
As recently as 2018, broadcast networks took in an estimated $439
million in advertising revenue for its late-night programs, according to
the advertising firm Guidelines. Last year, that number dwindled to $220
million.
Once a draw for young men, now they've turned away
Late-night TV was a particular draw for young men, considered the
hardest-to-get and most valuable demographic for advertisers.
Increasingly, these viewers are turning to streaming services, either to
watch something else entirely or catch highlights of the late-night
shows, which are more difficult for the networks to monetize.
More broadly, the much-predicted takeover of viewers by streaming
services is coming to pass. The Nielsen company reported that during the
last two months, for the first time ever, more people consumed
programming on services like YouTube and Netflix than on ABC, CBS and
NBC or any cable network.
Networks and streamers spent roughly $70 billion on entertainment shows
and $30 billion for sports rights last year, said Brian Wieser, CEO of
Madison & Wall, an advertising consultant and data services firm. Live
sports is the most dependable magnet for viewers and costs for its
rights are expected to increase 8% a year over the next decade. With
television viewership declining in general, it's clear where savings
will have to come from.
Wieser said he does not know whether Colbert's show is profitable or not
for CBS and parent company Paramount Global, but he knows the direction
in which it is headed. “The economics of television are weak,” he said.
In a statement announcing the cancellation, George Cheeks, Paramount
Global's president and chief executive officer, said that “This is
purely a financial decision against a challenging backdrop in late
night. It is not related in any way to the show’s performance, content
or other matters happening at Paramount.”
Cheeks' problem is that not everyone believes him.
Colbert is a relentless critic of Trump, and earlier this week pointedly
criticized Paramount's decision to settle Trump's lawsuit against CBS
over a “60 Minutes” interview with Kamala Harris. He called Paramount's
$16 million payment to Trump a “big fat bribe,” since the company is
seeking the administration's approval of its merger with Skydance Media.
On Friday, the Writers Guild of America called for an investigation by
New York's attorney general into whether Colbert's cancellation is
itself a bribe, “sacrificing free speech to curry favor with the Trump
administration as the company looks for merger approval.”
CBS' decision made this a pivotal week for the future of television and
radio programming. Congress stripped federal funding for PBS and NPR,
threatening the future of shows on those outlets.
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Stephen Colbert arrives at a screening of "The Late Show with
Stephen Colbert," during PaleyFest, April 21, 2024, at the Dolby
Theatre in Los Angeles. (Photo by Richard Shotwell/Invision/AP,
File)
 Journey Gunderson, executive
director of the National Comedy Center, called the decision to end
Colbert's show the end of an era.
“Late-night television has historically been one of comedy's most
audience-accessible platforms — a place where commentary meets
community, night after night,” Gunderson said. “This isn't just the
end of a show. It's the quiet removal of one of the few remaining
platforms for daily comedic commentary.
Trump celebrates Colbert's demise
Trump, who has called in the past for CBS to terminate Colbert's
contract, celebrated the show's upcoming demise. “I absolutely love
that Colbert got fired,” the president wrote on Truth Social. “His
talent was even less than his ratings.”
Some experts questioned whether CBS could have explored other ways
to save money on Colbert. NBC, for example, has cut costs by
eliminating the band on Seth Meyers' late-night show and curtailing
Jimmy Fallon's “Tonight” show to four nights a week.
Could CBS have saved more money by cutting off the show immediately,
instead of letting it run until next May, which sets up an awkward
“lame duck” period? Then again, Colbert will keep working until his
contract runs out; CBS would have had to keep paying him anyway.
CBS recently cancelled the “After Midnight” show that ran after
Colbert. But the network had signaled earlier this year that it was
prepared to continue that show until host Taylor Tomlinson decided
that she wanted to leave, noted Bill Carter, author of “The Late
Shift.”
“It is a very sad day for CBS that they are getting out of the
late-night race,” Andy Cohen, host of Bravo's “Watch What Happens
Live," told The Associated Press. “I mean, they are turning off the
lights after the news.”
Colbert, if he wanted to continue past next May, would likely be
able to find a streaming service willing to pay him, Wieser said.
But the future of late-night comedy on the entertainment networks is
genuinely at risk. Trump, in fact, may outlast his fiercest comic
critics. Jon Stewart, once a weeknight fixture, works one night a
week at “The Daily Show” for Paramount's Comedy Central, a network
that seldom produces much original programming any more.
ABC's Jimmy Kimmel, who was chided on social media by Trump on
Friday — “I hear Jimmy Kimmel is next” — has a contract that also
runs out next year. Kimmel, 57, openly wondered in a Variety
interview before signing his latest three-year contract extension
how long he wanted to do it. He's hosted his show since 2003.
“I have moments where I go, I cannot do this anymore,” Kimmel told
Variety in 2022. “And I have moments where I go, what am I gonna do
with my life if I'm not doing this anymore?' It's a very complicated
thing ... I'm not going to do this forever.”
Colbert, Kimmel and Stewart were all nominated for Emmy awards this
week.
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