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The End of Late Night? What Colbert’s Exit Means for TV Advertising
Michael Beach
July 30, 2025
Setting the table: Stephen Colbert’s Late Show is going dark — not just for summer, but forever. What used to be a crown jewel of network TV is now a shadow of its former self. And that spells trouble for advertisers still clinging to the old playbook.
This isn’t just about Colbert: It’s about the collapse of linear TV. Colbert didn’t fail, the model did. This is another signal that broadcast networks are quietly exiting everything but sports, news, and cheap reality.
Let’s break it down into 4 big questions:
1) Who still watches late night?
2) Why was The Late Show cancelled?
3) What did late night mean to advertisers?
4) What’s next for late night TV?
Who still watches late night?
Average viewership for late night TV (2025-Q2):
1) The Late Show with Stephen Colbert (CBS) - 2.4M
2) Jimmy Kimmel Live! (ABC) - 1.8M
3) The Tonight Show Starring Jimmy Fallon - 1.2M
Average daily viewership between 11pm and 1am:
1) 2015 - 66M
2) 2023 - 34M (↓ 49%)
Context: Johnny Carson used to pull 10M - 15M viewers a night, which would be ≈25M today. That era’s gone.
Median age for late night viewers:
1) 2015 - 48
2) 2023 - 61 (↑ 27%)
Why was The Late Show cancelled?
Combined losses for the three big late night shows: $100M in 2024!
Bottom line: Networks need to move every spare dollar to secure live sports. No room for losing money on anything else.
Quote from Scott Galloway - Professor @ NYU Stern School of Business:
“I was wrong about Colbert. Economics are driving him out, not politics. Granted, two things can be true at once, and Colbert’s constant ribbing of the president probably made his walk on the green mile shorter. But, let’s be clear … winter was coming. This is an overdue reshaping of the supply chain in TV.”
Quote from Samantha Bee - Comedian and former late night host:
“It definitely was hemorrhaging money. These legacy shows are hemorrhaging money with no real end to that…in sight, people are just not tuning in.”
Quote from Jimmy Kimmel - Host @ Jimmy Kimmel Live:
“I don’t know if there will be any late-night television shows on network TV in 10 years.”
What did late night mean to advertisers?
Advertising spend for late night shows:
1) 2018 - $439M
2) 2024 - $220M (↓ 50%)
More: The 2025 Video Ad Market
What’s next for late night TV?
Exit stage left → Enter creator economy: Colbert and others will follow the path of Conan O’Brien, Megyn Kelly, and Jon Stewart. Smaller teams, better margins, more control.
Quote from Scott Galloway - Professor @ NYU Stern School of Business:
“When his contract ends in 10 months, the economic shackles will also come off. Instead of leading a $60 million business with 200 staff, Colbert will likely helm a $20 million business with 12 highly skilled people. These shows might lack the glitz and glamor of late-night. But that can be an advantage, as Colbert demonstrated during the pandemic, when he delivered monologues at home without a live audience, his wife, Evie Colbert, by his side.”
“TV’s biggest stars are simply arbitraging the means of production (i.e., losing 90% of their staff). The talent in front of the camera/mic has figured out how to hold on to their income and cultural relevance by reducing production costs.”
“Podcasts are TV, but with an audio-first overlay and better unit economics.”
The future: Scott Galloway’s breakout of the creator business model is prescient. He generates roughly 33% of the revenue with 8% of the staff.
Bottom line: Late night isn’t just fading — it’s flipping. Late night network shows are being replaced by agile, ad-friendly creators who don’t need a stage, a suit, or 200 staffers.
Advertisers will follow talent, not networks. Colbert, Kimmel, and others have enough brand equity to launch direct-to-audience ventures. The future of late night is a YouTube clip, a Spotify podcast, or a Substack video.
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