Colbert's Cancellation: Money, Politics, or Both? The Bleak Future of TV Economics.
- NewsBlend360
- Jul 20
- 4 min read
BY NEWS BLEND 360
Updated 1:33 PM EDT, July 20, 2025
CBS claims its decision to cancel Stephen Colbert’s late-night comedy show is driven by financial reasons, not political ones. Despite widespread skepticism about this reasoning, it's clear that the financial situation was not in Colbert’s favor.
The network’s surprising announcement on Thursday night that the “Late Show” will conclude next May removes President Donald Trump’s most notable TV critic and the leading entertainment program in its category.
The declining economic health of the television industry necessitates similar tough decisions regarding personalities and programming, with more to come in the future. The late-night genre has its own specific factors to consider.
CBS claims its decision to cancel Stephen Colbert’s late-night comedy show is driven by financial reasons, not political ones. Despite widespread skepticism about this reasoning, it's clear that the financial situation was not in Colbert’s favor.
The network’s surprising announcement on Thursday night that the “Late Show” will conclude next May removes President Donald Trump’s most notable TV critic and the leading entertainment program in its category.
The declining economic health of the television industry necessitates similar tough decisions regarding personalities and programming, with more to come in the future. The late-night genre has its own specific factors to consider.
Once appealing to young men, now they've lost interest
Late-night TV was particularly appealing to young men, a demographic known for being both elusive and highly prized by advertisers. These viewers are increasingly turning to streaming services, either to watch different content or to catch highlights of late-night shows, which are harder for networks to monetize.
More broadly, the long-anticipated shift of viewers to streaming services is becoming a reality. The Nielsen company reported that over the past two months, for the first time, more people watched programming on platforms like YouTube and Netflix than on ABC, CBS, NBC, or any cable network.
According to Brian Wieser, CEO of Madison & Wall, an advertising consultancy and data services firm, networks and streamers spent about $70 billion on entertainment shows and $30 billion on sports rights last year. Live sports remain the most reliable draw for viewers, and the cost of sports rights is expected to rise by 8% annually over the next decade. As television viewership declines overall, it's evident where cost-cutting will need to occur.
More broadly, the long-anticipated shift of viewers to streaming services is becoming a reality. The Nielsen company reported that over the past two months, for the first time, more people watched programming on platforms like YouTube and Netflix than on ABC, CBS, NBC, or any cable network.
According to Brian Wieser, CEO of Madison & Wall, an advertising consultancy and data services firm, networks and streamers spent about $70 billion on entertainment shows and $30 billion on sports rights last year. Live sports remain the most reliable draw for viewers, and the cost of sports rights is expected to rise by 8% annually over the next decade. As television viewership declines overall, it's evident where cost-cutting will need to occur.
CBS’ decision marked a significant week for the future of television and radio programming. Congress eliminated federal funding for PBS and NPR, putting the future of shows on these outlets at risk.
Journey Gunderson, executive director of the National Comedy Center, described the decision to end Colbert’s show as the end of an era.
“Late-night television has traditionally been one of comedy’s most accessible platforms for audiences — a space 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 previously urged CBS to end Colbert’s contract, welcomed the news of the show's upcoming end. “I absolutely love that Colbert got fired,” the president posted on Truth Social. “His talent was even less than his ratings.”
Some experts wondered if CBS could have found alternative ways to cut costs on Colbert’s show. For instance, NBC has saved money by removing the band from Seth Meyers’ late-night show and reducing Jimmy Fallon’s “Tonight” show to four nights a week.
Could CBS have saved more by ending the show immediately instead of letting it continue until next May, creating an awkward “lame duck” period? However, Colbert would continue working until his contract expired; CBS would have had to pay him regardless.
CBS recently canceled the “After Midnight” show that followed Colbert. However, the network had indicated earlier this year that it was ready to keep the show going until host Taylor Tomlinson chose to leave, as noted by Bill Carter, author of “The Late Shift.”
“It is a very sad day for CBS that they are exiting 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.”
If Colbert wished to continue past next May, he would likely find a streaming service willing to hire him, Wieser said. However, the future of late-night comedy on entertainment networks is genuinely uncertain. Trump, in fact, might outlast his most critical comic adversaries. Jon Stewart, once a nightly presence, now works one night a week at “The Daily Show” for Paramount’s Comedy Central, a network that rarely produces much original content anymore.
ABC’s Jimmy Kimmel, who was criticized on social media by Trump on Friday — “I hear Jimmy Kimmel is next” — has a contract that also expires next year. Kimmel, 57, openly questioned in a Variety interview before signing his latest three-year contract extension how long he wanted to continue. He’s hosted his show since 2003.
“I have moments where I think, I cannot do this anymore,” Kimmel told Variety in 2022. “And I have moments where I wonder, what will I 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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