The entertainment industry was shocked this week when CBS announced the cancellation of “The Late Show with Stephen Colbert,” scheduled to end in May 2026. Recent reports have confirmed what many industry insiders suspected: the show was reportedly losing over $40 million annually for the network, despite being the highest-rated late-night talk show on traditional broadcast television.
Financial Performance Behind the Cancellation
The Late Show has been losing more than $40 million a year, a significant amount even for a show that leads traditional late-night talk shows in ratings. This financial burden became unsustainable for CBS, despite Colbert’s impressive viewership numbers of 2.47 million viewers, which exceed both Jimmy Fallon and Jimmy Kimmel.
The show’s production costs have been substantial, with The Late Show costing slightly less than $75 million per year to produce before adding Colbert’s salary, which has been estimated in the mid-teen millions. These high production costs, combined with declining advertising revenue in traditional television, created an unsustainable financial model.
Declining Audience and Industry Challenges
The financial struggles weren’t just about high production costs. The Late Show’s audience has fallen more than 30% in the past five years and declined even more among the critical 18-to-49-year-old demographic prized by advertisers. This demographic shift reflects broader industry trends, as younger viewers have increasingly moved to streaming platforms, YouTube, and podcasts.
The late-night television landscape has fundamentally changed, with traditional programming facing competition from cheaper and infinite YouTube rivals. This shift has made it increasingly difficult for network late-night shows to maintain profitability, even when they lead in traditional ratings.
Political Speculation Surrounding the Timing
While CBS maintains the decision was purely financial, the timing has raised eyebrows. Democratic senators like Elizabeth Warren and Adam Schiff have questioned whether the cancellation was politically motivated, particularly given recent events and Colbert’s critical coverage of political figures.
CBS says the Colbert cancellation was a financial decision, but the timing is raising questions among media critics and lawmakers who point to the show’s recent content as potentially influencing the network’s decision.
Impact on Late-Night Television
The cancellation of Colbert’s show represents a broader crisis in late-night television profitability. Despite maintaining the highest ratings among traditional late-night hosts, the show’s inability to generate sufficient revenue highlights the challenges facing legacy media in the streaming era.
The loss of advertising revenue to digital platforms, combined with changing viewing habits, has made even successful shows financially challenging for networks. Colbert’s situation demonstrates that ratings success doesn’t automatically translate to financial viability in today’s media landscape.
What This Means for the Future
The end of “The Late Show with Stephen Colbert” in May 2026 marks a significant shift in late-night television. As networks struggle with the economics of traditional programming formats, more shows may face similar financial pressures regardless of their cultural impact or ratings performance.
For CBS, the decision represents a choice between maintaining a prestigious but costly program and pursuing more profitable programming alternatives. The network’s willingness to cancel its highest-rated late-night show underscores the severity of the financial challenges facing traditional broadcast television.
Conclusion
Yes, the Stephen Colbert show was indeed losing money—approximately $40 million annually according to recent reports. While the show maintained strong ratings and cultural relevance, the combination of high production costs, declining advertising revenue, and changing viewer habits created an unsustainable financial situation for CBS. The cancellation reflects broader industry challenges rather than just the performance of one show, signaling potential changes ahead for late-night television programming.