Budget Cuts Impacting Late Night TV Landscape

'Jimmy Kimmel Live!' Randy Holmes/Disney/Getty Images In the new documentary Lorne, a scene features Lorne Michaels, the creator of Saturday Night Live, dining with Steve Martin in Manhattan. During the meal, Martin inquires about Michaels' potential retirement from SNL. Michaels indicates that he feels a responsibility to remain involved to protect the show and its resources. Michaels oversees NBC's late night lineup, including SNL, The Tonight Show, and Late Night. The documentary highlights his active role in the production process. CBS has exited the late night market, renting its slot to Byron Allen's Comics Unleashed after canceling both The Late Show and Late Late Show. Stephen Colbert recently accepted an Emmy Award for his show's final season. Reports from the New York Post indicated that Jimmy Kimmel's show might end next year due to contract non-renewal, which ABC denied. However, Puck later reported that Kimmel and ABC are negotiating a one-year contract extension, with the network seeking budget cuts of approximately 20 percent. While ABC and Kimmel are in discussions for another season, no agreement is guaranteed. Budget cuts are a common trend in late night television, with NBC's Tonight Show and Late Night also experiencing reductions in production days and other elements. Kimmel's potential one-year extension reflects the current industry climate, allowing both parties flexibility. Advertising revenue for late night shows has decreased by 50 percent since 2018, according to media-tracking firm Guideline, and digital revenue has not compensated for this decline. Ratings for Kimmel's show remain relatively stable, averaging over 2.7 million viewers in Q2, while The Tonight Show averaged 1.4 million viewers. Late Night averaged 974,000 viewers, and The Daily Show averaged 1.2 million viewers. Despite these numbers, viewership is significantly lower than in previous years when Jay Leno and David Letterman attracted over 5 million and 4 million viewers, respectively. The landscape of late night television is changing, with platforms like YouTube gaining popularity among audiences. Conan O'Brien's transition from television to a podcasting platform illustrates this shift, as his podcast has garnered more views than his TBS show. O'Brien noted that his experience on the YouTube show Hot Ones highlighted the challenges facing late night television. A new generation of talent is emerging on platforms like YouTube and TikTok, and established late night hosts are joining them. YouTube CEO Neal Mohan stated that late night content is being redefined in personalized feeds, allowing for diverse formats. Legacy talent, including Colbert and Kimmel, are likely to establish a presence on these platforms, preserving their brands regardless of traditional network television's future. The trend of significant spending on late night television is nearing an end.