Why Stephen Colbert’s ‘Late Show’ Ended: Ratings, Politics or the End of Late Night?

A Show That Wasn’t Profitable

The Late Show with Stephen Colbert was a ratings success, but it couldn’t sustain itself financially. CBS decided to cancel the show, citing annual losses of around $40 million. However, this situation isn’t unique. According to a former media executive who worked at CBS in the 1990s, the financial challenges of late-night television have been growing for years.

“The overall revenue for late-night network programs is now less than half of what it was 10 years ago,” he said. “In the 2018 season, total revenue was about $440 million. Today it is about $200 million.”

This decline is linked to changing audience habits, especially among younger viewers. “The audience has been eroding, and younger audiences are leaving more quickly. This makes these shows less attractive to advertisers,” he added.

Even with cost-cutting measures, it’s unlikely that the format would have survived. “You can’t cut your way to greatness,” he noted, highlighting the high production costs and large staff required for such shows.

The Politics Angle

The timing of the cancellation, along with Colbert’s strong political stance, has led to speculation that the decision wasn’t purely financial. Although Colbert honed his skills on the politically charged Daily Show and Colbert Report, his approach on The Late Show became more politically focused after the 2016 election. This shift helped boost ratings but also marked a broader trend in late-night comedy, where hosts increasingly cater to ideologically aligned audiences rather than a general national audience.

A Format in Crisis

Beyond Colbert, the entire late-night landscape is under pressure. Advertising revenue has dropped significantly and is expected to continue declining as brands target younger audiences on digital platforms.

“It’s sad. Late-night shows have great production values and represent one of the last remnants of quality linear broadcast network television,” Reisfield said. “But audiences are moving away, and these network shows have a harder time justifying the expense as the world changes. It just doesn’t make sense anymore.”

What Comes Next?

Reisfield believes that Jimmy Kimmel and Jimmy Fallon will see a short-term boost from Colbert’s exit. However, they face similar challenges. As audiences shift towards podcasts, social media clips, and streaming services, the traditional late-night model is losing its central role in pop culture.