CBS, Letterman said discussing new deal (B&C;, NYT, LAT, GAW)

By Nancy Tartaglione-Vialatte

CBS and David Letterman have begun discussing a new deal to keep the "Late Show" host on the network beyond 2010, Broadcasting & Cable reports citing sources with knowledge of the early talks. The discussions come as the 11:30pm timeslot is about to undergo a sea change with Conan O'Brien taking over "The Tonight Show" and Jay Leno heading to 10pm on NBC.

With Leno having opted to stay at NBC, rather than jumping ship to ABC, both CBS and Letterman could take the opportunity for Letterman to pick up some new viewers. Leno has consistently beaten Letterman in the 11:30pm ratings but with Leno out of the picture, Letterman could jump to the top spot.

Letterman's current deal goes to August 2010 with his salary believed to be well over $30 million a year.

There had been previous questions about Letterman's intent to continue beyond that 2010 date, with "The Daily Show" star Jon Stewart considered a possible replacement if CBS and Letterman decided to part ways.

But, in an interview last year with Rolling Stone, Letterman indicated he may want to sign one more deal.

In that interview, Letterman said, "The way I feel now, I would like to go beyond 2010, not much beyond, but you know, enough to go beyond. You always like to be able to excuse yourself on your own terms. If the network is happy with that, great. If they wanna make a change in 2010, you know, I'm fine with that, too."

If Letterman stays, he will be competing with O'Brien and ABC's "Nightline" at 11:30pm.

Meanwhile, a report in The New York Times this week said that ABC had held discussions about moving Jimmy Kimmel to the 11:35pm, supplanting "Nightline" but ABC executives disavowed knowledge of any plan to make a late-night change. Anne Sweeney, the president of the Disney-ABC TV Group, said that any such conversations were speculative and strongly denied that moving Kimmel was in anyone’s plans at the network.

Still, people with knowledge of meetings told the NYT that a Kimmel move was discussed at some length, as was the possibility of making the move as soon as later this year.

For ABC and others looking for latenight conquest, the real problem isn't O'Brien or Letterman, but rather Stewart, Stephen Colbert and any number of other as-yet-unheralded late-night contenders that other basic-cable networks will inevitably trot out in the years hence, writes The Los Angeles Times.

Leno's audience skews fairly old, and his move into prime time will probably take more than a few of those folks with him. That will leave an audience that's disproportionately young and male.