The decision to cancel “The Late Show with Stephen Colbert” has sparked debate over whether it signals the end of an era for late night television or is simply an isolated move driven by corporate restructuring. Some industry insiders point to Paramount’s push to finalize its merger with Skydance Media—recently approved by the FCC—as a key motivator, while others see it as part of a larger shift away from traditional late night programming amid changing viewer habits and rising production costs.
Stephen Colbert’s show has remained the most-watched in its time slot despite a steady decline in viewership, with most of the audience now aged over 65. In the latest TV season, the show averaged around 1.9 million viewers. While this still outpaces competitors like “Jimmy Kimmel Live” and “The Tonight Show,” the numbers reflect the broader trend of declining linear TV audiences. The show reportedly loses $40 million annually. NBC’s trio of late night programs—Fallon, Meyers, and Saturday Night Live—collectively lose over $100 million a year, while Kimmel’s show is only profitable when accounting for digital and affiliate revenue.
The fate of “Jimmy Kimmel Live” may provide further clarity when his contract expires in 2026. Kimmel’s show is valuable to Disney as both a promotional platform and a source of digital engagement. With over 20 million YouTube subscribers and a strong track record of driving interest in Disney’s film and television slate, Kimmel’s influence extends beyond traditional ratings.
Still, the larger media landscape is shifting. Streaming has eroded the traditional pay-TV bundle, ad revenue has dropped, and sports content now dominates network programming strategies. As a result, networks are trimming costs. NBC has made format changes to its late night shows, while CBS previously experimented with younger-skewing content in “After Midnight,” which was later canceled when the host opted not to return.
Although CBS attributes Colbert’s cancellation to financial pressures, the timing—shortly after he criticized the company’s legal settlement involving Donald Trump—has fueled speculation. Paramount insists the decision wasn’t related to content or performance.
As media companies reevaluate priorities in a rapidly evolving landscape, the future of late night television remains uncertain. Colbert’s exit may be just the beginning of a broader transformation—or the end of a cultural mainstay.
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