But the Leno shift should save NBC a bundle in production costs. “We can do 5 of my new shows for the cost of one CSI: Miami,” Leno told the New York Times Magazine in a story published last month. “I’d like to beat CSI when it’s in reruns. When they’re on the murder for the second time, we’ll be doing original shows, talking about what’s happening right now.”

Late night’s shorter production schedule also affords advertisers greater branding opportunities. According to Lee, “It’s a good move for NBC. It gives them a more focused schedule... [And] Jay Leno is a reliable personality. He probably won’t do gangbusters at 10, but you look at the risk and reward there and it should pay off for NBC.”

Fallon, for his part, has already showcased a special live TurboTax commercial on his program, as well as rallying viewers through Twitter and other online media.

“I hope there is more opportunity for late-night branding. I think the networks are nervous about integration,” says Lee. “We don’t want to force anything. It really has to be organic to the show. I do think there will be more opportunities with more shows available now.”

It’s the suddenly beefed-up selection that has truly changed the business aspect of late-night programming. While NBC has secured its Leno-Conan-Fallon lineup, and CBS (VIA) has lined up David Letterman, rival ABC (DIS) has discussed the possibility of moving late-night talker Jimmy Kimmel from midnight to 11:30 p.m. to go head-to-head with Letterman and O’Brien.

What’s more, Fox (NWSA) is launching a new late-night show starring comedienne Wanda Sykes, while Turner-owned cable channel TBS (TWX) is doing the same with comedian George Lopez along with a stand-up comedy showcase called The Very Funny Show. Throw in The Daily Show and Colbert Report on Comedy Central, and you’re witnessing the first-ever late-night glut. With the first episode of The Tonight Show with Conan O’Brien beating Letterman and Kimmel’s combined ratings, it could just be the beginning.

“I think there is a possibility in cable getting in more,” says Lee. “Turner has a lot riding on The George Lopez Show and depending on the success it could mean more similar shows.”