Disney Execs Dodge Kimmel Renewal Amid Late-Night Budget Crisis
Disney President Dana Walden declined to confirm Jimmy Kimmel’s future at ABC, citing the 'challenging' economics of late-night television. Although Kimmel’s ratings have risen, the overall broadcast audience has shrunk, forcing Disney to balance its partnership with the host against significant budget pressures. Kimmel’s current contract expires in May 2027, and while ABC previously denied reports of the show’s end, Disney is currently negotiating to reduce production costs to ensure financial viability.
Key points
- Dana Walden refused to announce Kimmel’s status at a Bloomberg conference, stating the decision is still being worked through.
- Kimmel’s contract, signed in December 2025, keeps him on air through the 2026-27 season but expires in May 2027.
- Walden noted that while Kimmel’s ratings are up, they are relative to a much smaller overall late-night audience.
- Disney is prioritizing traditional TV advertising revenue over digital views, which generate significantly less income.
- The show faces financial pressure despite Kimmel’s strong performance, with Disney seeking to reduce production costs.
Background
This uncertainty follows a turbulent year for Kimmel, including a temporary suspension by ABC in September 2025 over remarks regarding the killing of Charlie Kirk. The show also faced scrutiny from the FCC and criticism from the White House after a joke about First Lady Melania Trump. In September 2026, Page Six reported the show would end in 2027, a claim ABC called 'inaccurate' and 'speculative.'
How outlets are covering it
The New York Post and The Hollywood Reporter emphasize the 'challenging' daypart and the disconnect between rising ratings and shrinking audiences. Fox News highlights the 'free speech' narrative surrounding Kimmel’s clashes with the Trump administration and FCC Chair Brendan Carr. Variety focuses on the broader business context, including Disney’s recent layoffs and the financial struggles of other late-night formats, such as CBS’s replacement of Stephen Colbert’s show with a cheaper syndicated alternative. All outlets agree that Disney is balancing its 'deep partnership' with Kimmel against the need for significant budget cuts.
Why it matters
The outcome of these negotiations will signal the future of traditional late-night television in the US. If Disney cancels or significantly cuts the show, it may accelerate the decline of the format, which has already seen major cuts at CBS and TBS. Kimmel’s high profile and political visibility make his departure a significant cultural and industry event.
What to watch
Disney and Kimmel are expected to continue negotiations regarding production costs and contract terms. A final decision on the show’s future is likely to be made before Kimmel’s contract expires in May 2027. The industry will watch for any further announcements from Disney or ABC regarding the show’s schedule or budget.
- Disney’s No. 2 exec gives telling clue about Jimmy Kimmel’s future at ABC New York Post
- Disney’s Dana Walden on Jimmy Kimmel’s Late Night Future: “It’s Challenging” The Hollywood Reporter
- Disney chief Dana Walden dodges when asked about Jimmy Kimmel's future as ABC's late-night host foxnews.com
- Disney President Dana Walden on the Future of 'Jimmy Kimmel Live!' Variety
- Why Hasn’t Jimmy Kimmel Signed A New Deal With Disney? Deadline
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