CONGRATULATIONS.

IT TOOK OVER THE SLOT THAT WAS LONG HELD BY STEPHEN COLBERT.

HOW LONG HAVE YOU WANTED TO DO THAT?

>> I'VE BEEN CHASING THAT FOR OVER 51 YEARS.

SINCE I WAS 14 YEARS OLD AND I MET JOHNNY CARSON AT THE NBC STUDIOS IN BURBANK.

SO I TELL EVERYBODY, WALTER, I MADE 65-YEAR-OLD OVERNIGHT SENSATION.

>> AND TELL ME ABOUT THOSE EARLY YEARS IN COMEDY.

>> MY MOM WHO IS NOT ONLY BEAUTIFUL --SHE'S BRILLIANT.

SHE GOT PREGNANT WITH ME WHEN SHE WAS 16 AND HAD ME 17 DAYS AFTER HER 17th BIRTHDAY AND I TELL EVERYBODY I HAVE TWO HIGH SCHOOL DIPLOMAS SO, YOU KNOW, I WAS BORN IN DETROIT, MICHIGAN IN APRIL OF '61, AND MARTIN LUTHER KING WAS ASSASSINATED IN APRIL OF '68, AND THE RIOTS BROKE OUT, AND DETROIT GOT LIT UP LIKE A CHRISTMAS TREE, AND MY MOM AND I DECIDED TO COME OUT TO L. A. AND VISIT FRIENDS AND FAMILY FOR A COUPLE OF WEEKS IN THE SUMMER OF 68.

AND WE ENDED UP STAYING, AND IT WAS SLIM PICKINGS WHEN WE GOT HERE, SLEEPING ON A LOT OF FLOORS AND A LOT OF SOFAS AND SPARE ROOMS WHERE WE COULD FIND IT, AND MY MOM ENDED UP GETTING INTO UCLA AND GETTING HER MASTERS DEGREE IN CINEMA TV PRODUCTION AND BECAUSE SHE GOT HER MASTERS DEGREE IN CINEMA TV PRODUCTION FROM UCLA, SHE WAS ABLE TO GO ALL OVER TOWN AND ASK FOR JOBS AND KNOCKED ON A LOT OF DOORS.

GOT A LOT OF NO'S AND SHE FINALLY WENT TO NBC AND SAID, HEY, DO YOU HAVE A LOT OF JOBS AND THEY SAID NO, AND ASKED, DO YOU HAVE AN INTERN PROGRAM WHERE I CAN WORK HERE FOR FREE, AND THEY SAID, NO.

AND THEN SHE ASKED A QUESTION THAT CHANGED OUR LIVES FOREVER.

SHE SAID, WILL YOU PLEASE START ONE WITH ME, AND THEY SAID YES.

AND BECAUSE SHE COULD NOT AFFORD CHILDCARE, SHE TOOK ME TO WORK QUITE OFTEN, AND AFTER SCHOOL AND DURING THE SUMMER, I WOULD GO FROM STUDIO TO STUDIO TO STUDIO WAITING FOR MY MOM TO GET OFF WORK, AND I'M STANDING THERE AND I SEE JOHNNY CARSON DO THE TONIGHT SHOW AND I WOULD GO ACROSS THE HALL AND I WOULD WATCH RED FOX TAPE HIS SHOW, SANFORD AND SON.

AND FLIP WILSON TAPE HIS SHOW AND BOB HOPE TO'S SPECIALS.

I THOUGHT, WHAT A WONDERFUL WAY TO GO THROUGH LIFE, MAKING TELEVISION AND MAKING PEOPLE LAUGH.

I STARTED DOING STANDUP COMEDY WHEN I WAS 14.

>> AND YOU STARTED GETTING PAID PER JOKE.

IS THAT RIGHT?

>> I WAS PERFORMING AT THE COMEDY STORE.

MY FIRST TIME AT THE COMEDY STORE, I WAS 14 YEARS OLD.

IT WAS MONDAY NIGHT TRYOUT NIGHT AND THEY SAID, GET THERE EARLY AND THEY SAID THE DOORS OPEN AT 7:00.

PEOPLE LINE UP TO TRY OUT.

SO I TOOK THE BUS.

I WAS 14.

I TOOK THE BUS AND GOT THERE AT NINE IN THE MORNING AND I SAT THERE ON THE CURB AND I WROTE JOKES AND WAITED FOR THEM TO OPEN THE DOOR AND I WENT ON STAGE, AND THIS GUY --IT WAS BASICALLY FOUR PEOPLE IN 200 CHAIRS SO I HAD TO FIGURE OUT HOW TO MAKE 200 CHAIRS LAUGH AND I WENT ON STAGE AND PERFORMED AND THIS GUY SAID, HEY, YOU WROTE THOSE JOKES?

CAME RIGHT UP TO ME AND I SAID I WROTE THEM.

HE SAID, THOSE ARE FUNNY.

HE SAID, I MAY KNOW SOMEBODY THAT MAY WANT TO WORK WITH YOU.

A WEEK OR TWO LATER, I GOT A CALL AND THIS GUY SAYS TO ME, CAN I SPEAK TO BYRON?

I SAID, THIS IS BYRON.

HE SAID, THIS IS JIMMY, JJ WALKER.

KID DYNAMITE, AND JIMMY WALKER WAS THE HOTTEST COMMITTEE AND BY FAR ON THE PLANET.

YOU KNOW, HE WAS THE START OF GOOD TIMES ON CBS, AND HE SAID MY MAN WAYNE CLIENT SAYS YOU'RE FUNNY.

AND IF MY MAN WAYNE CLIENT SAYS YOU'RE FUNNY, YOU MUST BE FUNNY.

>> TOLL LANE, THANK YOU.

I APPRECIATE THAT.

>> HE SAID, I'M SITTING IN A WRITERS EATING.

DO YOU WANT TO COME IN RIGHT JOKES WITH ME AND MY BOYS?

I SAID, LET ME ASK MY MOM.

MY MOM SAYS YES.

SHE DROPS ME OFF AT JIMMY'S APARTMENT.

I WALK IN AND SITTING THERE IS JIMMY WALKER, THE BIGGEST TELEVISION STAR IN AMERICA AT THAT TIME, JAY LENO, WHO IS SLEEPING IN HIS CAR, AND DAVE WAS DAVID LETTERMAN WHO DROVE OUT FROM INDIANAPOLIS IN A RED PICKUP TRUCK.

>> TO BE JOKE WRITERS FOR HIM.

>> HOW DID YOU CREATE JOKES AT 14?

WHAT WAS THE METHOD?

>> YOU KNOW, OBSERVATIONAL COMEDY FOR ME.

I WAS TALKING ABOUT MY LIFE.

I WAS REALLY JUST STUDYING WHAT WAS GOING ON IN THE WORLD.

YOU KNOW.

IT JUST REALLY APPRECIATED A LOT OF THE COMEDIANS.

VERY CLEAN, FAMILY ORIENTED BACK THEN --THIS IS THE MID- 70s.

THIS IS 1975.

SUMMER OF '75.

I WAS REALLY JUST SHARING MY EXPERIENCE.

MY EXPERIENCE DEALING WITH MY MOTHER, MY FATHER, MY FRIENDS.

>> SO THEY CAN FEEL WELCOME, WILL YOU.

BYRON ALLEN.

>> IT WAS A POLITICAL PERIOD AND YOU TENDED TO STEER CLEAR OF POLITICAL JOKES, EVEN TO THE STATE.

WHY?

>> YOU KNOW, I'VE NEVER DONE POLITICAL HUMOR.

IT JUST WASN'T MY THING.

THERE'S A GREAT PLACE FOR POLITICAL HUMOR.

THERE ARE FOLKS WHO LOVE IT WHO APPRECIATE IT.

MY ENTIRE CAREER HAS BEEN ABOUT EVERGREEN COMEDY.

COMEDY YOU CAN US INTO TODAY, 40 YEARS FROM NOW, 50 YEARS FROM NOW, 60 YEARS FROM NOW.

WHEN I STARTED DOING COMICS UNLEASHED WITH BYRON ALLEN, I SAID, LISTEN, WE ARE DOING I LOVE LUCY.

IT'S EVERGREEN.

I DON'T WANT YOU TO DO ANYTHING THAT IS POLITICAL.

I DON'T WANT YOU TO DO ANYTHING THAT'S RACIST OR SEXIST OR ANTI- SOMATIC OR HOMOPHOBIC.

JUST TALK ABOUT YOUR LIVES.

INCLUDE EVERYBODY.

MAKE EVERYBODY FEEL GOOD.

WE ARE HERE TO HELP PEOPLE LEFT.

>> THAT IS REALLY DIFFERENT FROM THE LATE LATE NIGHT COMEDY HAS BEEN RECENTLY AND ESPECIALLY OF COURSE WITH COLBERT.

THERE WERE CONTROVERSIES ABOUT HIM BEING POLITICAL AND CONTROVERSIES OVER WHETHER CBS PUSHED HIM OUT BECAUSE HE WAS TOO POLITICAL.

YOU THINK THAT THERE'S A POLITICAL PLACE NOW TO GET RID OF POLITICS OR IS THAT AVOIDING THE ISSUES?

>> NO.

THERE WILL ALWAYS BE PLENTY OF POLITICAL HUMOR.

THAT'S NOT GOING TO GO AWAY.

YOU KNOW.

YOU KNOW.

THERE ARE EASILY SEVEN COMEDIANS DOING POLITICAL HUMOR.

YOU HAVE JIMMY FALLON, SETH MEYERS, JIMMY KIMMEL, BILL MARR, JOHN OLIVER, JON STEWART.

GREG GUTFELD.

THAT'S JUST TO NAME A FEW.

>> DO YOU BELIEVE CBS FELT MORE COMFORTABLE WITH YOU BECAUSE YOU AREN'T POLITICAL GIVEN ALL THAT YOU HAVE BEEN THROUGH?

>> NO.

I THINK IS PURELY AN ECONOMIC DECISION.

YOU KNOW, THE RATINGS ARE SLIPPING ACROSS LINEAR TELEVISION, AND WHEN THE RATINGS SLIPPED, THE END DOLLARS MS.

ADVERTISERS DON'T PRINT MONEY.

THEY SHIP MONEY.

YOU CAN'T IGNORE THE FACT THAT APPROXIMATELY 50% OF ALL VIEWERSHIP IS NOW SITTING WITH STREAMING.

SO, LEST PEOPLE FORGET THAT JAY LENO TOOK A 50% PAY CUT.

PEOPLE FORGET THAT SETH MEYERS --THEY CUT HIS BAND.

THERE ARE A LOT OF FOLKS WHERE THEY SAID TO THE LATE NIGHT COMEDIANS, HEY, THE RATINGS AREN'T WHAT THEY USED TO BE.

WE NOW NEED TO ADJUST THIS FINANCIALLY.

PEOPLE SHOULD REMEMBER THAT IT'S NOT SHOW BUSINESS.

IT IS BUSINESS SHOW.

NOW, IF YOU LOOK AT THE RATINGS AND YOU APPROACH IT AS BUSINESS SHOW, WHAT YOU'LL NOTICE IS THAT COLBERT'S RATINGS AND NOT JUST COLBERT.

ANYBODY DOING POLITICAL HUMOR --BUT IN THE CASE OF COLBERT, HIS REPEATS WERE NEGATIVE 52% BECAUSE WHEN YOU'RE DOING POLITICAL HUMOR, YOU ARE TALKING ABOUT THE NEWS FROM EIGHT WEEKS AGO.

12 WEEKS AGO.

WHEN YOU REPEAT THE SHOW.

BECAUSE WE DIDN'T DO POLITICAL OR TOPICAL HUMOR, OUR REPEATS WERE ONLY NEGATIVE 14%.

>> SO ARE YOU --YOU ARE USING A LOT OF REPEATS THEN AND THIS HELPS THE BUSINESS MODEL IS WHAT YOU ARE SAYING?

>> I'M NOT USING A LOT OF REPEATS.

I'M JUST SAYING THAT WHEN YOU DO POLITICAL HUMOR, IT DOESN'T REPEAT AS WELL VERSUS NOT DOING IT BECAUSE WHEN YOU DO POLITICAL HUMOR, IT IS VERY TOPICAL.

WE WANTED TO HAVE SOMETHING THAT WAS MORE SUSTAINABLE, THAT YOU COULD PLAY IT, YOU KNOW, A YEAR FROM NOW, 10 YEARS FROM NOW.

>> TELL US ABOUT YOUR NEW SHOW AND WHAT CAN VIEWERS EXPECT DURING THIS ROLLOUT?

>> YOU KNOW, OUR SHOW IS SPECIAL --SIMPLE.

WE ARE HERE TO MAKE YOU LAUGH.

THAT'S ALL HE WANT TO DO.

MAKE YOU LEFT.

I'M SITTING THERE WITH FOUR OTHER COMEDIANS, TWO TO MY RIGHT, TWO TO MY LEFT.

AND I'VE GOT TO TELL YOU, IN MY YEARS DOING THIS SHOW, I'M SO IMPRESSED WITH THE COMEDIANS I'M SEEING TODAY BECAUSE THEY GREW UP HAVING ACCESS TO EVERY COMEDIAN.

WHEN I STARTED STAND UP IN '75, I SAW THE COMEDIANS AT THE COMPANY STORE THAT SHOWED UP.

THAT'S IT.

AND NOW, THEY ARE ON THE INTERNET AND THEY SEE EVERY COMEDIAN THAT HAS EVER ENGAGED IN THE ART OF COMEDY.

>> YOU TALK ABOUT IT BEING SHOW BUSINESS.

YOU TALK ABOUT IT BEING BUSINESS SHOW.

>> BUSINESS SHOW.

BUSINESS SHOW, NOT SHOW BUSINESS.

>> AND YOU'VE CREATED A REALLY BIG BUSINESS EMPIRE.

I THINK PEOPLE PROBABLY DON'T QUITE REALIZE THAT YOU COME AT THIS AS AN ENTREPRENEUR AND AS A BUILDER OF A BIG BUSINESS.

TELL ME HOW YOU DECIDED TO BECOME A MEDIA BARON IN THAT WAY.

>> FIRST OF ALL, THANK YOU FOR ASKING.

HERE'S WHAT I WOULD SAY, WALTER.

YOU KNOW, I LEARNED EARLY ON, YOU KNOW, IDEAS ARE A DIME A DOZEN.

THE KEYWORDS ARE EXECUTION AND DISTRIBUTION OF THOSE IDEAS.

I INVESTED A LITTLE BIT OVER $1 BILLION, ABC, NBC, AND FOX AFFILIATES, AND I SAT ON THE CBS AFFILIATES BOARD.

I SIT ON THE BOARD IN THE NATIONAL ASSOCIATION OF BROADCASTERS BUT WHEN I SAT ON THE CBS AFFILIATES BOARD, AT ALL OF THESE OTHER STATIONS THAT I --WE OWN AND CONTROL, I SAID, LOOK, I DON'T KNOW WHY WE ARE SPENDING SO MUCH MONEY TO WIN LATE NIGHT BECAUSE EVEN IF YOU WIN, ALL YOU ARE DOING IS HANDING ME AN AUDIENCE AT 1:30 IN THE MORNING THAT I'M GOING TO USE TO GO RIGHT INTO 81 800 SPRING ON HAIR.

ONE 800 ABS IN 24 HOURS.

I UNDERSTAND WHY YOU WOULD INVEST A GREAT DEAL OF CAPITAL TO WIN IN THE MORNING, 7:00 TO 9:00.

IN THE AFTERNOON WITH YOUR GAME SHOWS AND SOAP OPERAS, AND EVENING WITH EVENING NEWS AND PRIME TIME, BUT WE DON'T NEED TO DEPLOY RESOURCES TO WIN LATE NIGHT TICKET INTO 1 800 SPRAY ON HAIR INFOMERCIALS.

THEY WERE LOSING OVER 40 MILLION A YEAR ON COLBERT.

THE SHOW WAS CUSSING 110, 120 MILLION ACCORDING TO CBS, I SAID, OKAY.

YOU'VE DECIDED NOT TO GO FORWARD WITH COLBERT.

I CAN SAVE YOU THAT 40 MILLION, PLUS PAY YOU 15 MILLION FOR THAT HOUR.

SO THAT IS A $55 MILLION POSITIVE SWING IN YOUR DIRECTION.

AND I WILL PUT A SHOW IN THEIR WHERE THE RATINGS WILL BE COMPARABLE AND THE RATINGS ARE COMPARABLE WHEN YOU COMPARE OUR MAY 22nd TO MAY OF '25 FOR COLBERT, OUR RATINGS WERE 5% LESS THAN HIS.

AND THAT DOES NOT INCLUDE THE CORD CUTTING.

THE COURT CUTTING IN THE LAST YEAR OF 5 TO 10% OF THE AUDIENCE GOING AWAY.

THEY HAVE RECEIVED A $55 MILLION POSITIVE SWING.

THEY'RE NOT SPENDING 110 TO 120 MILLION, PLUS THEY'RE GETTING 15 MILLION FROM US.

SO IT'S A BIG WIN IN IT'S GOING TO BE A MODEL THAT'S GOING TO REVOLUTIONIZE NETWORK TV FOREVER BECAUSE THE NETWORKS ARE SPENDING AN ENORMOUS SUM ON LIFE SPORTS, AND ONCE AGAIN, YOU DON'T PRINT MONEY.

YOU'VE SHIFTED AND THEY ALL HAVE TO GET THEIR LIFE SPORTS TO BE COMPETITIVE.

THEY HAVE LESS FOR ENTERTAINMENT CONTENT AND AS AN OWNER OF ABC, NBC, CBS, AND FOX AFFILIATES, I HAD A FRONT ROW SEAT TO THAT AND I SAID, IF THIS MATH DOESN'T WORK AND THE WAY I CAN BE HELPFUL IS TO START PROVIDING CONTENT THAT IS COMPETITIVE AND AT THE SAME TIME CAN SAVE YOU AN ENORMOUS SUM OF CAPITAL.

>> SO YOU'VE EXPLAINED THAT YOU'RE PAYING $15 MILLION, RIGHT, FOR LEASING, LET'S SAY, THAT HOUR OF CBS.

THAT HELPS THEM ECONOMICALLY.

>> AND THEY SAFE.

AND THEY DON'T LOSE 40 MILLION BECAUSE THEY WERE LOSING 40 MILLION.

>> EXPLAIN HOW THAT WORKS.

YOU JUST GO TO THEM AND SAY, I'LL PAY YOU FOR THIS ARE IN YOU COLLECT THE REVENUE FROM ADVERTISING.

ANYTHING THAT CAN BE A TEMPLATE GOING FORWARD.

>> YEAH.

I BOUGHT THE ENTIRE TWO HOURS.

I BOUGHT THE OUR BEHIND THE 11:30 HOUR.

I BOUGHT THE 11:35 HOUR.

AND THAT IS COMIC --WITH BYRON ALLEN.

RIGHT AFTER THAT I HAVE TWO HOURS BACK TO BACK OF FUNNY YOU SHOULD ASK.

OUR COMEDY GAME SHOW.

I BOUGHT A TWO HOUR COMEDY BLOCK.

WE HAVE TWO HOURS PER NIGHT.

10 HOURS PER WEEK.

520 HOURS PER YEAR ON CBS MAKING US THE LARGEST PROVIDER OF NETWORK CONTENT TO THE NUMBER ONE NETWORK IN AMERICA PROVIDING MORE HOURS THAN ALL OF THE STUDIOS COMBINED.

NOW, WITH THAT, WALTER, WE HAVE 14,000 --A LITTLE OVER 14,000 30 SECOND SPOTS THAT WE HAVE TO GO SELL TO ADVERTISERS AND THOSE ADVERTISERS BY OUR SPOTS.

THAT'S HOW WE FUND THE PRODUCTION OF THE SHOW AND WE FUND THE ACQUISITION OF THE 520 HOURS OVER THAT ONE YEAR PERIOD.

THAT IS A REVOLUTIONARY BUSINESS MODEL THAT I CREATED, AND I'VE CREATED THIS NEW PLATFORM AND I KNEW THAT THE NETWORK AND ALL THE NETWORKS QUITE FRANKLY, THEY NEED IT BECAUSE THEY ARE SPENDING BILLIONS ON TOP OF BILLIONS TO ACQUIRE THE RIGHTS TO LIFE SPORTS.

>> NOW, COULD THIS MODEL SPREAD EITHER BY YOU DOING MORE AND WOULD IT HAVE TO BE WITH CBS?

ARE YOU EXCLUSIVE TO THEM?

>> NO.

I'M NONEXCLUSIVE AND I CAN TELL YOU THAT PRETTY MUCH ALL THE NETWORKS HAVE COME TO ME AND HAS SAID, WHAT CAN YOU DO FOR US?

SO ALL THE NETWORKS ARE DEFINITELY SAYING, HOW CAN WE WORK TOGETHER?

NOW KEEP IN MIND, I HAVE THE INFRASTRUCTURE.

YOU KNOW, I OWN THE WEATHER CHANNEL.

I OWN 11 OTHER CABLE NETWORKS AND DIGITAL PLATFORMS, YOU KNOW, BUSBY.

HUFF POST.

I HAVE 74 SHOWS IN TELEVISION.

I A PROVIDER FOR FIRST RUN TELEVISION SHOWS, PROVIDING MORE FIRST RUN SHOWS THAN ALL THE OTHER STUDIOS COMBINED.

I'M CLOSE TO 2000 EMPLOYEES.

I STARTED THE COMPANY FROM MY DINING ROOM TABLE JUST ME AND MY MOM AND A TALENT BUCKER, AND WE BUILT IT UP TO NOW WHAT IS APPROXIMATELY 1000 EMPLOYEES AND HUNDREDS OF THEM -- HUNDREDS OF THEM SELL ADVERTISING, SO THIS IS WHAT WE DO EVERY DAY.

I AM IN BUSINESS WITH HUNDREDS OF ADVERTISERS DIRECTLY.

SO MY INFRASTRUCTURE PUTS ME IN THIS POSITION TO PRODUCE THE CONTENT AT A VERY EFFICIENT PRICE AND I HAVE THE ABILITY TO BUY THAT TIME.

AND SELL THE ADVERTISING BECAUSE I ALREADY HAVE, YOU KNOW, A PLATFORM THAT EMPLOYS 2000 PEOPLE --APPROXIMATELY 2000 PEOPLE AND THIS IS WHAT THEY DO EACH AND EVERY DAY.

>> ARE YOU WORRIED ABOUT THE FADING OF LINEAR TV, EVEN TO THIS IS THIS MODEL THAT YOU'VE DONE AND HOW HAVE YOU HEDGED AGAINST THAT IN YOUR BUSINESS?

>> GREAT QUESTION.

YOU KNOW, I'M NOT WORRIED ABOUT IT.

NOTHING EVER REALLY GOES AWAY.

YOU KNOW, THE MOVIE INDUSTRY CAME OVER 100 YEARS AGO, EVERYBODY IS LIKE, OKAY, THIS IS THE MOVIE INDUSTRY.

YOU CAN NOW SAY -- THEN RADIO CAME ALONG AND EVERYONE SAID, THAT'S A WRAP.

THE MOVIE INDUSTRY IS GOING TO SUFFER, AND THEN TV CAME ALONG AND THEY SAID GOODBYE MOVIES AND GOODBYE RADIO.

AND THAT DIDN'T HAPPEN.

HERE COMES APRIL.

HERE COMES DVD AND VHS AND DVD'S AND EVERYTHING BECAME ADDITIVE ALONG THE WAY.

NOTHING REPLACED IT.

IT ENHANCED EVERYTHING.

IT MADE IT BETTER.

TELEVISION MADE THE MOVIES BETTER.

IT WAS ANOTHER PLACE TO GO AND MONETIZE THE MOVIE.

DVDs MADE MOVIES BETTER.

EVERYTHING MADE IT ALL BETTER, BUT THE LANDSCAPE BECOMES SMART TEXTURED.

NOTHING'S GOING TO GO AWAY.

LINEAR TV WILL ALWAYS BE HERE.

>> BYRON ALLEN, THANK YOU SO MUCH FOR JOINING US.

>> THANK YOU, WALTER.