CBS is standing by its controversial decision to cancel Stephen Colbert’s long-running late-night show. The network now claims the move will transform a money-losing hour of television into a profitable business venture worth millions. In a statement released Thursday, CBS said its new arrangement with media entrepreneur Byron Allen represents a significant shift in how it approaches late-night programming.
CBS claims it’s looking at $15 million profit with Stephen Colbert’s replacement deal
The network has adopted a “time-buy” model that allows an outside partner to take over the slot while assuming the financial risk. CBS stated, “We’re proud to partner with Byron Allen on a new business and programming model for late night that proactively addresses a network daypart that was cost-prohibitive to continue (via Variety ).”
According to the company, the former Late Show time slot had been losing approximately $40 million annually. Under the new arrangement, CBS expects to generate roughly $15 million in profit, creating what executives describe as a $55 million financial turnaround.
The agreement places the responsibility for production and advertising squarely on Byron Allen’s shoulders. Under the deal, Allen covers all production expenses for the programming that airs during the hour and pays CBS a fee to use the time slot. He also controls the advertising inventory and handles ad sales independently.
The setup provides CBS with a guaranteed revenue stream regardless of ratings performance or audience size. Whether viewership grows or declines, the network receives the same payment.
Many people in the entertainment industry do not believe CBS canceled The Late Show with Stephen Colbert for financial reasons. Instead, critics claim executives at Paramount Global wanted to stay on good terms with Donald Trump, who has often criticized the late-night host.
Stephen Colbert built much of his commentary around current events and political developments, frequently targeting Donald Trump and his administration. That approach helped The Late Show with Colbert regain its position at the top of the late-night ratings race. The CBS program consistently drew larger audiences than competitors such as The Tonight Show Starring Jimmy Fallon and Jimmy Kimmel Live, which became a major part of the show’s success and helped attract a large audience.
