CBS Shifts Late Night from $40M Loss to $15M Profit with New Comedy Block
"Late-night programming [has become] cost prohibitive" under the previous model, a CBS spokesperson said.
CBS will replace The Late Show with Stephen Colbert with a two-hour comedy block produced by Allen Media Group, beginning May 22. The network transitioned to a "time buy" agreement under which Allen's company covers all production costs and pays CBS a fee—a move the network said shifts the late-night hour from an approximate $40 million annual loss to a $15 million profit.
Programming Changes
The Late Show with Stephen Colbert will air its final episode on May 21. Starting May 22, the schedule will be as follows:
- 11:35 p.m. ET/PT: Comics Unleashed With Byron Allen. Two back-to-back half-hour episodes will air nightly. The program features host Byron Allen and comedians performing short sets on various topics.
- 12:35 a.m. ET/PT: Funny You Should Ask. A comedy game show hosted by Jon Kelley, where contestants answer trivia questions with input from a panel of comedians. The program has been in syndication since 2017.
Comics Unleashed previously occupied the 12:35 a.m. slot starting in September, following the cancellation of the game show After Midnight.
Financial Arrangement
Under the time-buy agreement for the 2026-27 season, Allen Media Group purchases airtime from CBS and manages advertising sales for the two-hour block. Allen’s company covers all production costs and retains the majority of commercial advertising units to sell to advertisers. CBS receives a fixed fee regardless of viewership.
CBS disclosed that The Late Show had been losing approximately $40 million per year due to high production costs and declining advertising revenue. The new model generates $15 million in annual profit, representing a $55 million swing.
Industry data showed ad spending on late-night television declined from $519.7 million in 2017 to $209 million in 2025—a drop of nearly 60%. The Late Show accounted for 27% of that spending in 2025.
Background on Programming
Allen Media Group produces both programs. Comics Unleashed was created by Allen approximately 20 years ago. The show is designed as an "evergreen" program with minimal topical humor, allowing for repeated broadcasts of older episodes; some segments previously aired on CBS are more than a decade old. According to Allen, guests contribute their own material, and the programs generally avoid political humor.
Executive producers for both shows include Allen, Carolyn Folks, Jennifer Lucas, Jodi Miller, and Peter Steen. Dylan King is an additional executive producer for Comics Unleashed, while Bob Boden, Scott Satin, and Eric Charbonnel are executive producers for Funny You Should Ask.
Viewership Data
Comics Unleashed premiered on May 22. According to CBS, the first half-hour averaged 878,000 total viewers, with a repeat airing drawing the same number. The Late Show with Stephen Colbert finale attracted 6.74 million viewers; the program's season average was 2.14 million. Industry observers noted that a direct comparison is not applicable due to the nature of a finale versus a debut on a Friday.
Context of Cancellation
CBS announced the conclusion of The Late Show in July, with the network citing financial pressures in late-night television. The show was produced by CBS Studios, which bore full production costs amid declining ad revenue. The cancellation occurred as Paramount (CBS's parent company) pursued acquisition by Skydance.
Former host David Letterman told The New York Times that Colbert "was dumped because the people selling the network to Skydance said, 'Oh no, there’s not going to be any trouble with that guy... They’re lying weasels.'"
Some observers speculated that the cancellation had political motivations, referencing Colbert's criticism of President Donald Trump and Paramount's pursuit of Trump administration approval for the sale. Weeks prior to the cancellation, CBS settled a defamation lawsuit filed by Trump, which several legal observers characterized as frivolous.
About Byron Allen
Byron Allen began his comedy career at age 14, performing at the Comedy Store. At 18, he became the youngest comedian to perform on The Tonight Show Starring Johnny Carson. He co-hosted NBC's Real People in the 1980s and hosted The Byron Allen Show from 1989 to 1992.
Allen is the founder and owner of Allen Media Group (formerly Entertainment Studios). The company produces court shows and sitcoms, and acquired The Weather Channel in 2018. In March 2026, Allen's investment arm, Allen Family Capital, acquired an 11% stake in Starz for $25 million. Allen's company recently closed a deal to acquire BuzzFeed.
Allen has been married to TV producer Jennifer Lucas since 2007. They have three children.