AceShowbiz - The decline of the first-run syndication market has been evident for several years, and now NBCUniversal is becoming the first major studio to fully exit this shrinking arena. This move signals a significant shift in the industry and may prompt other major players to follow suit.

One driving factor behind this decision is the recent announcement that The Kelly Clarkson Show, NBCUniversal’s flagship first-run syndicated program, will conclude at the end of its current season. This marks a turning point for the company’s approach to syndicated content.

As part of this strategic retreat, NBCUniversal will also cease original production of several other first-run syndicated shows. Among these are the long-running entertainment newsmagazine Access Hollywood and its spin-off Access Live, both set to end by late summer. Additionally, The Steve Wilkos Show and Karamo have completed production on their nineteenth and fourth seasons, respectively, with no future seasons planned.

It remains uncertain whether Access Hollywood and Access Live will continue as digital-only brands after their linear broadcasts end. Access Hollywood has been a staple of celebrity news coverage for three decades, while Access Live launched in 2010. New episodes of The Steve Wilkos Show and Karamo will still air through the summer months.

This withdrawal is expected to lead to layoffs affecting both production crews and executives involved with the now-defunct first-run syndicated shows. Frances Berwick, Chairman of Bravo and Peacock Unscripted who oversees the division, stated that the company is adjusting its syndication strategy to better fit local stations’ programming preferences.

Berwick explained, "The company will remain active in distributing our existing program library and off-network titles while winding down first-run production." She also praised the shows for delivering quality talk and entertainment content over the years and commended the teams behind them.

First-run syndication was once a lucrative business model, buoyed by daytime hits like The Oprah Winfrey Show. However, the last decade has seen a steady decline as traditional linear television viewership dropped sharply in the age of streaming. Video podcasts and other digital formats have largely supplanted conventional talk shows, while local stations—the primary buyers of syndicated programming—have increasingly favored local news or acquired syndicated content on barter deals instead of paying license fees.

This shift has rendered the dedicated first-run syndication studio model unsustainable. Nevertheless, NBCUniversal will continue distributing library and off-network programs such as Dateline, Law & Order, Chicago P.D., Maury, Jerry Springer, Steve Wilkos, and Karamo.

In summary, NBCUniversal is strategically exiting first-run syndication production while maintaining a presence in content distribution. This move reflects broader changes in viewer habits and the evolving economics of syndicated television programming.

This article is based on reporting originally published by Deadline.