Stephen Colbert cost CBS up to $50 million a year pushing woke comedy, while Sydney Sweeney casually sent American Eagle’s stock soaring 10%, adding $200 million in value just by showing up in denim. | HO~

In the ever-shifting landscape of American media, two stories have emerged that starkly illustrate the diverging fortunes of traditional television and the explosive power of celebrity influence.

While CBS grapples with mounting financial losses tied to Stephen Colbert’s polarizing late-night comedy, a single denim-clad appearance by actress Sydney Sweeney sent American Eagle’s stock price sky-high, adding $200 million in value overnight. The juxtaposition reveals not just a tale of two stars, but a fundamental reckoning for how entertainment, influence, and money intersect in the 21st century.

The Colbert Conundrum: When Comedy Turns Costly

For years, The Late Show with Stephen Colbert has been a flagship program for CBS, drawing millions of viewers and commanding premium advertising rates. But behind the scenes, network executives have been sounding the alarm over a worrisome trend: the show’s increasingly progressive, politically-charged humor—often labeled “woke” by critics—has alienated large swathes of the traditional late-night audience.

According to sources familiar with CBS’s internal financials, the network has been losing up to $50 million annually as a direct result of Colbert’s editorial direction. While the show still maintains a loyal following among certain demographics, the overall ratings have slipped, and, more crucially, advertisers have begun to flee.

“Advertisers want reach and a safe environment for their brands,” explained a former CBS marketing executive who spoke on condition of anonymity. “When the comedy gets too political or divisive, you lose that broad appeal. You lose the middle of America.”

A Shrinking Audience and Advertiser Exodus

The numbers tell a sobering story. In the early years of Colbert’s tenure, The Late Show enjoyed a ratings renaissance, fueled by sharp satire of the Trump administration. But as the political climate shifted and the show doubled down on progressive themes, ratings plateaued and then began to decline.

Meanwhile, major advertisers—ranging from consumer goods giants to automotive brands—quietly reduced their ad buys or shifted to less controversial programming. According to media buying data, The Late Show’s ad rates have dropped by as much as 20% since 2020.

“It’s not about ideology,” said the executive. “It’s about dollars. If you’re losing half your audience because they don’t want to be lectured at midnight, that’s a business problem.”

The End of an Era

The mounting losses became impossible to ignore. In a move that stunned the industry, CBS announced the cancellation of The Late Show with Stephen Colbert, attributing the decision to “financial considerations.” For many, it was a clear signal that even the biggest names in late-night are not immune to the bottom line.

Network insiders describe a mood of soul-searching at CBS. “Late-night used to be about bringing people together for a laugh before bed,” said one producer. “Now it feels like we’re dividing people. That’s not sustainable.”

Sydney Sweeney: The Accidental Market Maker

While CBS was tallying losses, a very different story was unfolding in the world of retail and celebrity branding. Sydney Sweeney, the breakout star of HBO’s Euphoria and a rising Hollywood icon, made a seemingly innocuous appearance in a pair of American Eagle jeans. What happened next stunned both Wall Street and Madison Avenue.

Within hours of Sweeney’s denim-clad photo shoot hitting social media, American Eagle’s stock surged 10%, adding roughly $200 million in market value overnight. The company’s executives were quick to acknowledge the “Sweeney Effect,” crediting her authentic, relatable style with energizing the brand’s image and driving a spike in both online engagement and sales.

The Power of Authentic Influence

What makes Sweeney’s impact so remarkable is its effortlessness. Unlike traditional celebrity endorsements, which are often meticulously orchestrated, Sweeney’s American Eagle moment felt organic—a young star simply wearing a brand she likes. In the age of social media, that kind of authenticity is gold.

“Sweeney resonates with Gen Z and millennials because she’s real,” said Tara McMillan, a pop culture analyst at Brandwatch. “She doesn’t come across as trying to sell something. She just lives her life, and people want to emulate that.”

American Eagle’s marketing team quickly capitalized, rolling out new campaigns featuring Sweeney and leveraging the viral moment across platforms. The result: a measurable boost in both brand equity and shareholder value.

The New Economics of Entertainment and Influence

The contrast between CBS’s struggles and American Eagle’s windfall is not just anecdotal—it’s emblematic of a broader transformation in the business of entertainment and influence.

The Risks of Political Comedy

Late-night TV was once the last bastion of broad, family-friendly humor—a place where Americans of all stripes could unwind together. But as hosts like Colbert, Jimmy Kimmel, and others have leaned into political commentary, the format has become more polarized.

For networks, the risks are clear. “You can’t build a mass audience by alienating half the country,” said Mark Feldman, a media economist at NYU. “If your comedy is only speaking to one side, you’re leaving money on the table—and advertisers know it.”

The $50 million annual loss at CBS is a stark warning. As streaming platforms and social media siphon away viewers, legacy broadcasters can no longer afford to ignore the commercial realities of divisive content.

The Rewards of Celebrity Authenticity

By contrast, the Sweeney phenomenon highlights the immense—and often unpredictable—power of celebrity influence in the digital age. A single Instagram post or red-carpet appearance can move markets, shift brand fortunes, and create instant cultural moments.

“Celebrity is the new currency,” said McMillan. “But it only works if it feels genuine. Audiences are savvier than ever—they can spot a fake endorsement a mile away.”

Brands are taking note. Rather than investing in expensive ad campaigns, many are redirecting budgets toward partnerships with stars who embody their values and connect with consumers on a personal level.

A Tipping Point for Traditional Media

The fallout from Colbert’s cancellation is already rippling through the industry. Other networks are reportedly reassessing their late-night lineups, wary of the financial risks posed by overtly political programming. Insiders say that future hosts will be chosen as much for their ability to appeal across the aisle as for their comedic chops.

Meanwhile, talent agencies and PR firms are scrambling to sign the next Sydney Sweeney—a star whose influence can be measured not just in likes and follows, but in hard market value.

“The old playbook is dead,” said Feldman. “It’s not enough to be funny or famous. You have to be a brand, and you have to move the needle.”

The Future: Entertainment That Pays—or Costs

As the dust settles, the lesson for the media and advertising worlds is clear: authenticity sells, polarization costs. For CBS, the Colbert era will be remembered as a cautionary tale about the limits of political comedy in a fragmented media environment. For American Eagle, the Sweeney moment is a case study in the outsized impact of celebrity influence—and the importance of meeting audiences where they are.

In the end, it’s a story about what matters in modern entertainment: not just making people laugh or selling them jeans, but understanding the cultural currents that drive both.

As television networks and brands chart their next moves, they would do well to remember the twin lessons of Colbert and Sweeney: In the age of influence, every joke and every jean can move markets—or sink them.