'Tonight Show's Leno to stay with NBC

Jay Leno will stay on at NBC and host a primetime talkshow, according to The Hollywood Reporter.

The network has lined up Leno for a weeknight 10pm slot, allowing Conan O'Brien to take over hosting duties on The Tonight Show and preventing rival broadcasters from poaching Leno.

Late Night host O'Brien had been hired to replace Leno, who announced that he was leaving The Tonight Show in 2004. As planned, Jimmy Fallon will take over Late Night.

Details on the format for Leno's new show are not yet known, though the 58-year-old has previously stated that he would remain at NBC if he could host a traditional talkshow.

Shari Anne Brill of New York ad buyer Carat said: "This is a win-win for everyone. Jay was not ready to call it a night. Why would you want to lose a talent like that to the other guys? Why would you want to give ABC an opportunity like that?"

NBC yesterday announced that it was considering cutting the number of programming hours in primetime. The new Leno show suggests that the network has already begun implementing those plans - a talkshow moved into a slot normally reserved for entertainment shows reduces the number of hours needed to fill each weeknight with original series.

Brad Adgate, research chief at Horizon Media, said that putting a talkshow in primetime would be an effective cost-cutting movie.

"Talkshows work in daytime and they work in late night and they work in cable at that hour and in primetime," he said. "The question, it's not so much the size of the audience as it is about can they make a profit out of it?"