Disney Execs Cite Shrinking Late-Night Audiences as Kimmel Deal Stalls
Jimmy Kimmel has not yet signed a new contract with Disney, with his current deal expiring in May 2027. Dana Walden, President and Chief Creative Officer of the Walt Disney Company, explained at the Bloomberg Screentime event that while Kimmel’s ratings have risen, the overall late-night audience has shrunk significantly. Disney is currently negotiating to reduce production costs to make the show financially viable, balancing business constraints with their long-standing partnership. Kimmel has previously argued that late-night shows do not need to cost $120 million, suggesting that cost-cutting measures could sustain the format. The negotiations remain ongoing as both parties seek a solution that honors their relationship while addressing the changing economics of broadcast television.
Key points
- Kimmel’s contract with Disney expires in May 2027, and no new deal has been signed yet.
- Dana Walden stated that late-night television is a challenging daypart due to a smaller overall audience.
- Kimmel’s ratings have increased, but this is relative to a much smaller broadcast audience compared to the past.
- Disney is seeking to cut costs for Jimmy Kimmel Live! to make the show a lucrative opportunity.
- Kimmel has suggested that late-night shows do not need to cost $120 million, implying potential for budget reductions.
- The show continues to air, with Kimmel appearing at Disney Upfronts and maintaining a strong relationship with company executives.
Background
In September 2026, ABC denied reports that Jimmy Kimmel Live! would end in 2027, confirming the show would continue through at least May 2027 under a one-year contract. Earlier that month, Deadline reported that ABC was pressing for material budget cuts as Kimmel negotiated another year of the show, amid political pressure on Disney. The show is not canceled, but its future beyond 2028 depends on whether Kimmel agrees to reduce production costs. Kimmel was pulled off the air by ABC in September 2025, becoming a free-speech hero, and has been in talks to renew his deal with Disney since last month.
Why it matters
The unresolved contract between Jimmy Kimmel and Disney highlights the broader financial challenges facing late-night television in the current media landscape. As audiences shift to on-demand and YouTube platforms, traditional broadcast networks are under pressure to reduce costs for premium talk shows. The outcome of these negotiations will determine whether Jimmy Kimmel Live! continues in its current format or undergoes significant changes, potentially setting a precedent for other late-night programs facing similar budgetary constraints. The situation also reflects the delicate balance networks must strike between maintaining high-profile talent and ensuring financial viability in a changing media environment.
What to watch
Negotiations between Jimmy Kimmel and Disney are expected to continue as both parties work to resolve the contract dispute. Potential cost-cutting measures, such as reducing the show's summer schedule or limiting expensive New York trips, may be discussed. The outcome of these talks will determine whether Jimmy Kimmel Live! continues beyond May 2027 and in what format. Kimmel’s recent comments on retirement and the sustainability of late-night shows suggest he may be open to changes, but the final decision will depend on whether both sides can agree on a financially viable model that honors their long-standing partnership.
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