The losing economics of late night TV is known so it's not surprising; the show could have made cuts; NBC has made some cuts like laying off Seth Meyers' entire house band. I guess they made the decision when under pressure from Trump at the end of Colbert's current contract, which just ended, and could justify it with declining economics.
So, if that's the case, it will be interesting to see if ABC and NBC do the same at the end of Fallon and Kimmel's current contracts which occur over the next 14-30 months.
- Jimmy Fallon signed a major contract extension with NBC through 2028.
- Jimmy Kimmel signed a contract extension with ABC through May 2027
Another fact that points to Trump political pressure cancelling the show is that even in the midst of declining industry economics that was well under way, in 2023, CBS actually encouraged Colbert to sign a five-year extension through 2031. Colbert turned that down and instead
opted for a shorter three-year extension that expired in
May 2026.