US media giant Comcast is set to spin off its NBCUniversal cable television arm, as the industry continues to struggle with the emergence of streaming giants like Netflix and Amazon Prime.
At the time, its cable networks were seen as some of its most attractive businesses.
Comcast is the first major media company to make such a move.
Earlier this year, Warner Bros and Paramount Global cut billions of dollars from the valuation of their cable TV networks.
Walt Disney has also considered spinning off its cable networks but ended up scrapping the plan.
In the face of streaming behemoths like Netflix and Amazon Prime, US media behemoth Comcast plans to split off its NBCUniversal cable television division.
According to the BBC, the plan, which is scheduled for announcement on Wednesday, is to establish a new company that will house channels like MSNBC, CNBC, USA, E!, Syfy, and the Golf Channel.
With a combined revenue of $7 billion (£5.5 billion) in the year ending in September, the networks are still profitable.
Comcast will retain the Peacock streaming service, the NBC broadcast television network, its theme parks, and its film and television studios.
Comcast executives anticipate finishing the plan within a year or so. They anticipate that following the spinoff, Comcast will be in a better position to grow.
The new business will be led by Mark Lazarus, the chairman of NBCUniversal’s media group.
Before streaming became popular, in 2011, Comcast acquired NBCUniversal. One of its most alluring ventures at the time was its cable networks.
However, an increasing proportion of cable TV viewers have been switching to streaming services and terminating their subscriptions.
The first significant media company to take this action is Comcast.
Warner Bros. and Paramount Global devalued their cable TV networks by billions of dollars earlier this year.
Walt Disney also contemplated separating its cable networks, but ultimately decided against it.
