Podcast Summary: The Town with Matthew Belloni Episode: Colbert’s Next Home, and Netflix Earnings Flexes and Anxieties Release Date: July 21, 2025

Introduction

In this episode of The Town with Matthew Belloni, host Matt Belloni engages in an in-depth discussion with Bloomberg’s Lucas Shaw and industry veteran Kim Masters. The conversation navigates through the recent cancellation of The Late Show with Stephen Colbert, Netflix’s latest earnings report, the evolving landscape of streaming services, and the ongoing litigation involving Rupert Murdoch and Donald Trump.

Stephen Colbert’s Show Cancellation

The episode begins with an analysis of the unexpected cancellation of Stephen Colbert’s late-night show. Belloni and Masters delve into the potential reasons behind this decision, weighing financial constraints against possible political influences.

• Financial vs. Political Factors

  • Kim Masters ([04:29]): “If you just follow the facts, then I lean pretty heavy on the financial, the timing and the circumstance. [...] Neither you nor I are in a position to be able to say that definitively.”
  • Matt Belloni ([05:54]): “I call it a cloud. There is a cloud of politics over this entire thing. It may not be the reason for the decision, but it's a factor.”

• Implications for CBS and Paramount

  • Masters ([06:45]): “There is about to be a lot. [...] If they think there's been a lot of layoffs and cost cutting at Paramount to date, it's only going to get worse.”
  • Belloni ([07:03]): Discusses the potential ripple effects on other CBS programs and the broader shift towards reality and celebrity-focused content.

• Future of Late-Night Shows

  • Masters ([10:25]): “...the only type of television or one of the only types of television that like Netflix has not figured out how to copy.”
  • Craig Horback ([12:05]): Questions why streaming platforms like Netflix haven’t successfully adopted the late-night format.

Netflix Earnings Report and Market Reaction

Transitioning to Netflix, Belloni and Masters analyze the company’s strong financial performance juxtaposed with a surprising 5% drop in stock price.

• Earnings Performance vs. Stock Decline

  • Belloni ([12:05]): “They grew revenue 16%. They got a record 11 billion in revenue profit. [...] Yet on Friday, The Netflix stock dropped 5%.”
  • Masters ([13:08]): “A lot of this was already priced in and we're seeing it not just with NetFL. [...] their share of US TV viewing is basically flat over the last year.”

• Engagement Metrics and Content Performance

  • Belloni ([17:55]): “So imagine if Ms. Rachel was exclusive to Netflix.”
  • Masters ([19:01]): Highlights top-performing shows like Ms. Rachel, Peppa Pig, and the dominant viewership of Adolescence with 145 million views.

• Competition with YouTube and Talent Acquisition

  • Belloni ([15:29]): Discusses Ted Sarandos’ openness to acquiring YouTube talent.
  • Masters ([15:42]): Counters that Netflix is unlikely to poach major YouTube creators, emphasizing the strong ties creators have with their platforms.

• Use of AI in Production

  • Belloni ([20:44]): “They used AI on this. And it is not a SAG AFTRA production, it is a foreign production.”
  • Masters ([22:14]): Notes Netflix’s acknowledgment of using AI tools, contrasting it with the resistance from American guilds.

Strategic Challenges and Future Outlook for Netflix

Belloni and Masters discuss Netflix’s strategic challenges in capturing a larger share of the television viewing market amid stiff competition.

• Market Share and Growth Concerns

  • Masters ([24:01]): “They talk pretty openly. They need to grab more time of viewing.”
  • Belloni ([25:06]): “It’s a land grab. [...] And right now, it doesn't look like they are capturing more of it.”

• Potential Strategies and Content Development

  • Belloni ([25:46]): Suggests that acquiring high-profile personalities like Colbert could rejuvenate Netflix’s position.
  • Masters ([26:10]): Acknowledges the difficulty in transitioning traditional late-night formats to streaming platforms.

Rupert Murdoch vs. Donald Trump: Implications for Fox News

The latter part of the episode shifts focus to the legal battle between Rupert Murdoch and Donald Trump over a Jeffrey Epstein-related story in the Wall Street Journal.

• Details of the Lawsuit

  • Belloni ([26:12]): “Trump called him to kill the story. And he's like, f you, we're doing the story. Sue us.”
  • Craig Horback ([27:16]): Discusses the likelihood of a settlement and its impact on the potential sale of Fox assets.

• Impact on Fox News and Murdoch’s Empire

  • Belloni ([29:46]): Highlights Fox News’ reluctance to cover the lawsuit to avoid alienating its pro-Trump audience.
  • Masters ([30:00]): Points out Rupert’s tightrope walk in balancing The Wall Street Journal’s journalistic integrity with Fox News’ partisan stance.

• Future of Fox News Coverage

  • Belloni ([30:00]): Speculates on how increased scrutiny over Epstein may force Fox to adjust its coverage, potentially risking audience loss.

Conclusion

Matt Belloni wraps up the episode by summarizing the key discussions with Lucas Shaw and Kim Masters. The conversation underscores the precarious balance Netflix maintains in a saturated streaming market and the internal and external pressures faced by traditional media giants like CBS and Fox News. The episode highlights the ongoing transformations within Hollywood, driven by financial imperatives, technological advancements, and shifting audience behaviors.

Notable Quotes

• Kim Masters ([04:29]): “If you just follow the facts, then I lean pretty heavy on the financial, the timing and the circumstance.”
• Matt Belloni ([05:54]): “I call it a cloud. There is a cloud of politics over this entire thing.”
• Kim Masters ([13:08]): “A lot of this was already priced in and we're seeing it not just with NetFL.”
• Matt Belloni ([15:29]): “I think Netflix is increasingly a scale game as well.”
• Kim Masters ([22:14]): “It was notable in that other than the Amazon House of David show, this is probably the foremost example of a major Hollywood studio company streaming service kind of owning to use of AI.”

This comprehensive summary encapsulates the critical analyses and discussions from the episode, providing listeners with valuable insights into the current dynamics of Hollywood, streaming services, and media litigation.