Disney weighs contract renewal for Jimmy Kimmel amid late-night budget pressures

Disney is in negotiations to extend Jimmy Kimmel's contract, which is set to expire in May, as the company reviews the economics of its late-night programming. At a Bloomberg Screentime event, Disney President and Chief Creative Officer Dana Walden said the network is trying to balance business considerations with its partnership with Kimmel.

"That’s not to say that Jimmy is not doing a phenomenal job, and his ratings are up, but they’re up relative to a smaller audience that’s watching late-night on broadcast television," Walden said. She added that while the show’s YouTube channel attracts millions of on-demand viewers, that platform does not generate the same revenue as a premium broadcast talk show.

Walden noted that late-night budgets are being reduced across the industry, citing recent cuts at competing programs. Disney aims to contain costs for Jimmy Kimmel Live! while maintaining a positive relationship with the host, who regularly appears at the company's upfront presentations.

Potential cost-saving measures discussed include shortening the summer hiatus, which began in 2020, and limiting the size of Kimmel's production crew during New York trips. The show has featured high-profile guests such as Robert De Niro, Billy Crystal, Ben Affleck, Matt Damon and New York City Mayor Zohran Mamdani.

Kimmel has previously questioned the high expenses associated with late-night shows, arguing that they were originally intended as low-cost promotional platforms for talent. He and his wife, executive producer Molly McNearney, recently talked about retirement possibilities on a podcast, indicating the host is weighing his long-term future.