The rise and fall of late night TV (what really killed It)

A $400M industry that once pulled 25 million viewers now loses $40M per year — killed by the same technology that created it.

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By The Numbers

25M

viewers on Letterman's premiere

$40M

annual loss per show

viewers today at peak

What They Nailed Early

Built appointment television when America had three channels. Johnny Carson and Letterman captured entire generations at bedtime — 7-8 million viewers nightly. Networks printed $100M+ per year in profit from a single show.

What Changed

Technology moved. DVRs killed appointment viewing, then YouTube and streaming obliterated the business model — paying 10 cents per eyeball versus broadcast dollars. Colbert went political to differentiate, but young audiences (now 70-year-old median viewer) abandoned the format entirely for Rogan-style podcasts with 10x the reach and 1/100th the cost structure.

Where it Landed

CBS cancelled The Late Show — no replacement planned. Industry revenue cut in half to $200M annually. Shows now lose tens of millions per year. High fixed costs meet collapsing viewership. The format is extinct.

The Principles

Technology giveth, technology taketh away. Broadcast TV created late night; the internet killed it. Plan for your creation tool to become your destruction tool.

High fixed costs are a time bomb. When revenue halves and you have hundreds of staff, you go from $100M profit to $40M loss overnight.

Generational shifts are existential. When 18-22 year-olds say 'what is late night TV?' — you don't have a marketing problem, you have a relevance problem.

Builder's Takeaway

3 warning signs your industry is next:

•

Your creation advantage becomes your destruction vector (tech, distribution, format)

•

New competitors deliver 10x reach at 1/100th your cost structure

•

The next generation doesn't know your category exists

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