Jay Leno staying on NBC in prime-time

NEW YORK/LOS ANGELES (Hollywood Reporter) – Jay Leno is staying at NBC with a show at 10 p.m. weeknights.

The network has signed the "Tonight Show" host to a new agreement that will allow NBC to keep him from going to a rival broadcaster without breaking the network's agreement with Conan O'Brien to take over "Tonight" next year. The new deal is expected to be announced at a news conference Tuesday.

NBC notified O'Brien of its plans some time ago, and the "Late Night" show host got on board.

"It's great for us," a source close to O'Brien said. "We're really excited because the alternative is him leaving angry and going to another network, competing against Conan."

Keeping both men in place, however, could be a tricky balancing act as the network seeks to hype O'Brien's ascension without allowing him to be upstaged by Leno's return -- presumably in the fall.

"This is a win-win for everyone," said Shari Anne Brill, a programing expert and executive with New York-based ad buyer Carat. "Why would you want to lose a talent like Leno to the other guys? Why would you want to give ABC an opportunity like that?"

The move also means NBC would program 17 hours of entertainment programing a week, down from 22.

NBC Universal chief Jeff Zucker signaled that significant changes were afoot at the network earlier Monday at the annual UBS Global Media and Communications Conference in New York. Later in the day, the network announced a reorganization that sent veteran executives packing.

While broadcasters have been looking at the possibility of cutting back on the hours they program, NBC's moves are the most dramatic response to the changing realities of the TV business since the WB and UPN merged in 2006.

While programing primetime should cost NBC significantly less with Leno than with five hour-long series, the network essentially is wiping out any long-term windfall a hit series could achieve in domestic syndication and foreign; a talk format has limited backend possibilities beyond a time-shifted second window on cable.

As host of "Tonight," Leno has averaged 4.8 million viewers this season. NBC may be able to grow that number given the new show's earlier time period but not to a degree that will make a talk show competitive with most dramas airing at 10 p.m.

"Maybe he'll bring in some other viewers who may not be able to stay up late for 'The Tonight Show,'" said Horizon Media research chief Brad Adgate.

The move will take pressure off NBC's struggling entertainment department and impacts the competitive field in significant ways. Although rivals might be disappointed that Leno will not be on the market next year, CBS and ABC will benefit by no longer having to compete with NBC's 10 p.m. dramas like "Law & Order: SVU."

The announcement also will come as a relief to at least one program that had slugged it out with "Tonight" since well before Leno took over for Johnny Carson in 1992. ABC's "Nightline," which has seen a new lease on life at 11:35 p.m. since Ted Koppel left, was widely seen as a possible casualty if Leno moved to ABC.

Although the industry guessing game over Leno's fate is now over, the move triggers a fresh round of question marks as to which of NBC's series -- both current and in development -- will make the cut for a reduced primetime schedule. Producers such as Dick Wolf ("Law & Order") or Reveille ("The Office") that provide NBC with multiple hours could find their businesses under pressure.

Other networks said they aren't considering schedule cutbacks. A broadcast insider said that NBC's reasoning could be construed as counterproductive because "it's like the automakers shutting down plants: It saves some money short-term, but it also prevents an opportunity to make any."

Reuters/Hollywood Reporter

No it's not. Leno sucks.

I'm not a Leno fan either but from an industry standpoint this is an interesting move. I wonder how a nightly prime time network talk show will do; NBC is essentially giving up on the 10pm hour.

I knew that jagoff wouldn't bow out gracefully. He stole the Tonight Show from Letterman by hiding in a closet and eavesdropping on executives. Now he's stealing the spotlight from Conan as well.

He's the Brett Favre of late night.

Hahahaha. I long for the day when I see that huge chin crying at a press conference.

I don't even watch latenight shows besides conan anymore, but I would never tune in to watch Leno unless kevin smith was on. Letterman's show is so much better