CBS says they'll make $15 million off Comics unleashed, compared to losing $40 million on Colbert.
CBS Says Late-Night Deal With Byron Allen Will Generate $15 Million in Profit
variety.com
Maybe. Essential pull-quote:
“But the numbers being shared by the network raise a larger question: what exactly is being counted, what’s being left out, and how much can ratings really be separated from the economics of a commercial broadcast network?
CBS has not publicly broken down how it arrived at the $40 million annual loss figure for
The Late Show. The network’s statement does not say whether that calculation includes only the direct cost of producing the show against national advertising revenue, or whether it accounts for other forms of value a No. 1 late-night franchise provided CBS and its affiliates.
That distinction is not academic. Network late night has never existed in a vacuum. The shows generate national ad sales, yes, but they also sit inside a broader broadcast ecosystem that includes affiliate fees, local advertising, tune-in for the late local news, and viewing habits that can carry into the next daypart.
If
Comics Unleashed continues to draw a smaller audience than
The Late Show, local stations will have less audience to sell around the hour. If CBS affiliates are being compensated in some other way for the change—perhaps in the form of a reduced affiliate fee—that too would play a part in the broader economics of the decision. And if viewers switch to NBC or ABC at 11:35, those habits could matter beyond the late-night hour itself.
The central question is not whether a time-buy model can make CBS’ 11:35 hour immediately more profitable. By CBS’ own accounting, it can. The question is whether the company’s $55 million swing captures the full cost and value of exiting the traditional late-night business.
There is a real argument that the traditional model no longer works. Late-night audiences have declined across the board, production costs remain high, and the online clips that drive cultural conversation are difficult for networks to monetize at the same scale as linear advertising.
But the ratings still matter, even if they matter differently. They matter to affiliates. They matter to advertisers. And losing viewers in one time period makes it that much harder to get them back in the next.
One veteran network executive compared CBS’ logic to NBC’s short-lived 10pm Jay Leno experiment, when the network argued that cheaper programming did not need to win the hour to make financial sense—only to see weaker rating ripple into affiliate newscasts and Conan O’Brien’s newly launched
Tonight Show, and eventually force a messy reversal. While allowing that the stakes are much lower in this case, “this feels like the same kind of financial logic with blinders on,” the executive said.“
Full story:
CBS says Byron Allen’s 'Comics Unleashed' turns 11:35 from a $40M annual loss into a $15M profit—but the math isn’t quite that simple.
latenighter.com