US media giant Comcast is set to spin off its NBCUniversal cable TV arm, as the industry continues to struggle with the emergence of streaming giants like Netflix and Amazon Prime.
The BBC understands the plan – expected to be announced on Wednesday – involves creating a new company which will include channels such as MSNBC, CNBC, USA, E!, Syfy and Golf Channel.
The networks are still profitable and generated a combined revenue of $7bn (£5.5bn) in the financial year to the end of September.
Comcast will retain the NBC television network, its movie and television studios and theme parks, as well as its Peacock streaming service.
Comcast executives estimate the plan will be completed in about a year. They expect Comcast to be better positioned for growth after the spinoff.
They believe the new company will be able to purchase other cable TV networks that could potentially come up for sale in the future.
The new company will be CEO of NBCUniversal Media Group Mark Lazarus.
Comcast Chairman Michael Cavanagh first hinted at the plan during a call with investors last month.
At the time, Mr. Cavanagh said he was exploring a strategy that could create “a new, well-capitalized company, owned by our shareholders and comprised of our strong portfolio of cable networks.”
Comcast took control of NBCUniversal in 2011, before the rise of streaming. At the time, its cable networks were considered one of its most attractive businesses.
But a growing number of cable TV viewers have canceled their subscriptions and turned to streaming platforms.
Comcast is the first major media company to make such a decision.
Earlier this year, Warner Bros. and Paramount Global slashed the valuation of their cable television networks by billions of dollars.
Walt Disney also considered splitting up its cable networks, but ultimately abandoned the plan.
