The 98th Academy Awards drew an average of 17.9 million viewers last March 16 on ABC and Hulu, a 9 percent decline from the previous year, even as host Conan O'Brien opened the show with jokes targeting the film industry's shift toward artificial intelligence and streaming services.

As per Variety, Nielsen data released by Walt Disney Co. showed the telecast from the Dolby Theatre averaged 17.9 million viewers, down from 19.7 million in 2025 when O'Brien hosted for the first time. It marked the lowest viewership since 2022 and the first decline since the post-pandemic rebound last year. The adults 18-49 demographic rating fell 14 percent to 3.92.

O'Brien, hosting for the second straight year, used his opening monologue to critique Hollywood's direction. He declared himself "honored to be the last human host of the Academy Awards," adding that next year's host would be "a Waymo in a tux."He also singled out Netflix co-CEO Ted Sarandos, joking that it was Sarandos' "first time in a theater" and mimicking an executive's inner monologue: "Why are they all together enjoying themselves? They should be home alone where I can monetize it!"

The jabs highlighted ongoing industry tensions over AI's role in entertainment and streaming's impact on theatrical exhibition.

The decline continued a long-term trend of shrinking live audiences for the Oscars, which once routinely drew more than 40 million viewers in the 1990s and early 2000s. Last year's gain to 19.7 million had been seen as a positive sign after pandemic lows, but 2026 numbers reflected broader changes in how audiences consume awards shows. Many viewers now prefer highlights and clips on social media rather than the full three-hour-plus telecast, industry analysts have noted.

O'Brien's monologue mixed those industry barbs with lighter jabs at nominees, including a deadpan line about heightened security due to concerns from the "opera and ballet communities" over comments by Timothée Chalamet. He also acknowledged the "chaotic, frightening times" outside the theater while ending on a note of optimism about the Oscars' international appeal.

Reactions from industry leaders focused more on O'Brien's performance than the ratings dip. Walt Disney Television's Rob Mills, executive vice president of unscripted and alternative entertainment who oversees the Oscars telecast, told Variety that the comedian has a standing offer to host "for life."

"Oh, that is no joke, Conan is host for life, yes," Mills said. "He hasn't even accepted yet. He's just being told. We're assuming that was not a comedy bit. We're going to treat that as if that was fact."

Mills' comments came as producers and ABC executives reviewed the telecast, which featured technical glitches including muffled sound and erratic direction that some reviewers said affected the pacing. No immediate statement was issued by the Academy of Motion Picture Arts and Sciences on the viewership numbers.

The show itself celebrated films from 2025, with strong performances and emotional winner speeches drawing social media engagement. Video views across platforms topped 129 million, and social media impressions rose 42 percent from the prior year, according to early metrics shared by the network.

Still, the ratings drop prompted discussion about the Oscars' relevance in a fragmented media landscape. According to Observer, some analysts pointed to competition from streaming originals and shorter attention spans, while others suggested the three-and-a-half-hour runtime and reliance on insider humor limited broader appeal.

O'Brien, who earned widespread praise for his 2025 debut, had prepared for a return with elaborate sketches, including one in which he portrayed the villainous "Aunt Gladys" from the film "Weapons" while being chased through clips from best picture nominees.

ABC and the Academy have two years left on their current broadcast deal before the telecast is scheduled to move to YouTube in 2029. Mills' offer to O'Brien signaled confidence in the host despite the audience slip.

The 98th Oscars honored a competitive field headlined by films such as "One Battle After Another" and "Sinners," with the latter earning a record number of nominations. Winners included several first-time honorees, and the ceremony featured musical performances and tributes that drew applause inside the Dolby Theatre.

Whether the ratings dip signals deeper challenges for the Academy or is simply part of television's broader evolution remains unclear. For now, Disney and the Academy appear committed to O'Brien's irreverent style as they navigate an industry in transition.

Tags
Conan O'Brien