The cost of producing late night programs has risen as the media industry has been upended by streaming and shifting consumer habits. The traditional pay TV bundle has lost millions of customers in recent years, and as they've disappeared, so too have advertising dollars. The shifting equation has forced media companies to rebalance. At a large scale, companies like Comcast's NBCUniversal and Warner Bros. Discovery have opted to split off their cable TV networks into separate corporate entities. At the programming level, big shows are increasingly greenlit for release on streaming services rather than traditional networks. Salaries of highly paid news anchors have moderated, with some stepping away from traditional networks entirely and starting out their own ventures. And much of the money spent on bulking up both linear TV networks and streaming services is earmarked for live sports. That leaves familiar titles in flux. "The Late Show with Stephen Colbert" employed around 200 people and recorded annual losses of around $40 million, according to a person familiar with the matter, who declined to be named speaking about nonpublic matters. "Jimmy Kimmel Live" employs around 250 people and loses roughly the same amount, according to a person familiar with that show's finances. While the pay-TV bundle still rakes in the highest share of profits for legacy media companies – much of which stems from the fees that pay-TV distributors hand over to the networks to be included in the bundle – that figure is in decline. Linear TV advertising revenue has also been on a steady downward slope. Industry analysts and experts expected the ad market to stabilize in 2025 after tumultuous streaming-centric years, but macroeconomic uncertainty has hampered the recovery. In quarterly earnings that were reported in May, Paramount, NBCUniversal and Disney each reported lower ad sales on a year-over-year basis. Paramount reported in May that its first-quarter TV advertising revenue was down 21% to $2.04 billion, mainly due to comparisons to the prior-year period when the company had the Super Bowl. That championship beckons the most ad dollars of any live event on TV. Without the Super Bowl, ad revenue would have been flat, the company said. Overall revenue for Paramount's TV segment was down 13%. Of the traditional TV ad spend that does remain, the biggest share has gravitated to live sports, which draw the biggest audiences. NBCUniversal recently touted its record ad sales volume during the most recent Upfront cycle due to an upcoming slate of NBA, the Super Bowl, Winter Olympics and other sports. Disney reported in May that quarterly revenue for its domestic linear networks was down 3% to $2.2 billion, attributing the decline to lower ad revenue. Still, Disney noted ad revenue for ESPN and sports in general saw an increase in ad revenue.