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CBS says its decision to end Stephen Colbert鈥檚 late-night comedy show is financial, not political. Yet even with the ample skepticism about that explanation, there’s no denying the economics were not working in Colbert’s favor.

The network鈥檚 bombshell announcement late Thursday that the 鈥淟ate Show鈥� will end next May takes away President Donald Trump鈥檚 most prominent TV critic and the most popular entertainment program in its genre.

The television industry’s declining economic health means similar hard calls are already being made with personalities and programming, with others to be faced in the future. For the late-night genre, there are unique factors to consider.

As recently as 2018, broadcast networks took in an estimated $439 million in advertising revenue for its late-night programs, according to the advertising firm Guidelines. Last year, that number dwindled to $220 million.

Once a draw for young men, now they’ve turned away

Late-night TV was a particular draw for young men, considered the hardest-to-get and most valuable demographic for advertisers. Increasingly, these viewers are turning to streaming services, either to watch something else entirely or catch highlights of the late-night shows, which are more difficult for the networks to monetize.

More broadly, the much-predicted takeover of viewers by streaming services is coming to pass. The Nielsen company reported that during the last two months, for the first time ever, more people consumed programming on services like YouTube and Netflix than on ABC, CBS and NBC or any cable network.

Networks and streamers spent roughly $70 billion on entertainment shows and $30 billion for sports rights last year, said Brian Wieser, CEO of Madison & Wall, an advertising consultant and data services firm. Live sports is the most dependable magnet for viewers and costs for its rights are expected to increase 8% a year over the next decade. With television viewership declining in general, it’s clear where savings will have to come from.

Wieser said he does not know whether Colbert’s show is profitable or not for CBS and parent company Paramount Global, but he knows the direction in which it is headed. 鈥淭he economics of television are weak,鈥� he said.

In a statement announcing the cancellation, George Cheeks, Paramount Global’s president and chief executive officer, said that 鈥淭his is purely a financial decision against a challenging backdrop in late night. It is not related in any way to the show鈥檚 performance, content or other matters happening at Paramount.鈥�

Cheeks’ problem is that not everyone believes him.

Colbert is a relentless critic of Trump, and earlier this week pointedly criticized Paramount’s decision to settle Trump’s lawsuit against CBS over a 鈥�60 Minutes鈥� interview with Kamala Harris. He called Paramount’s $16 million payment to Trump a 鈥渂ig fat bribe,鈥� since the company is seeking the administration’s approval of its merger with Skydance Media.

On Friday, the Writers Guild of America called for an investigation by New York’s attorney general into whether Colbert’s cancellation is itself a bribe, 鈥渟acrificing free speech to curry favor with the Trump administration as the company looks for merger approval.鈥�

CBS’ decision made this a pivotal week for the future of television and radio programming. Congress stripped federal funding for PBS and NPR, threatening the future of shows on those outlets.

Journey Gunderson, executive director of the National Comedy Center, called the decision to end Colbert’s show the end of an era.

鈥淟ate-night television has historically been one of comedy’s most audience-accessible platforms 鈥� a place where commentary meets community, night after night,鈥� Gunderson said. 鈥淭his isn’t just the end of a show. It’s the quiet removal of one of the few remaining platforms for daily comedic commentary.

Trump celebrates Colbert’s demise

Trump, who has called in the past for CBS to terminate Colbert’s contract, celebrated the show’s upcoming demise. 鈥淚 absolutely love that Colbert got fired,鈥� the president wrote on Truth Social. 鈥淗is talent was even less than his ratings.鈥�

Some experts questioned whether CBS could have explored other ways to save money on Colbert. NBC, for example, has cut costs by eliminating the band on Seth Meyers’ late-night show and curtailing Jimmy Fallon’s 鈥淭onight鈥� show to four nights a week.

Could CBS have saved more money by cutting off the show immediately, instead of letting it run until next May, which sets up an awkward 鈥渓ame duck鈥� period? Then again, Colbert will keep working until his contract runs out; CBS would have had to keep paying him anyway.

CBS recently cancelled the 鈥淎fter Midnight鈥� show that ran after Colbert. But the network had signaled earlier this year that it was prepared to continue that show until host Taylor Tomlinson decided that she wanted to leave, noted Bill Carter, author of 鈥淭he Late Shift.鈥�

鈥淚t is a very sad day for CBS that they are getting out of the late-night race,鈥� Andy Cohen, host of Bravo’s 鈥淲atch What Happens Live,” told The Associated Press. 鈥淚 mean, they are turning off the lights after the news.鈥�

Colbert, if he wanted to continue past next May, would likely be able to find a streaming service willing to pay him, Wieser said. But the future of late-night comedy on the entertainment networks is genuinely at risk. Trump, in fact, may outlast his fiercest comic critics. Jon Stewart, once a weeknight fixture, works one night a week at 鈥淭he Daily Show鈥� for Paramount’s Comedy Central, a network that seldom produces much original programming any more.

ABC’s Jimmy Kimmel, who was chided on social media by Trump on Friday 鈥� 鈥淚 hear Jimmy Kimmel is next鈥� 鈥� has a contract that also runs out next year. Kimmel, 57, openly wondered in a Variety interview before signing his latest three-year contract extension how long he wanted to do it. He’s hosted his show since 2003.

鈥淚 have moments where I go, I cannot do this anymore,鈥� Kimmel told Variety in 2022. 鈥淎nd I have moments where I go, what am I gonna do with my life if I’m not doing this anymore?’ It’s a very complicated thing … I’m not going to do this forever.鈥�

Colbert, Kimmel and Stewart were all nominated for Emmy awards this week.

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AP journalist Liam McEwan in Los Angeles contributed to this report. David Bauder writes about the intersection of media and entertainment for the AP. Follow him at and .