American media giant Comcast is set to shut down the cable television arm of NBCUniversal, as the industry continues to struggle with the rise of streaming giants such as Netflix and Amazon Prime.
system, officially announced on Wednesday, a new company will be created that will include channels such as MSNBC, CNBC, USA, E!, Syfy and the Golf Channel.
The networks are still profitable and generated combined revenue of $7bn (£5.5bn) in the year to the end of September.
Comcast will retain the NBC broadcast television network, its film and television studios and its theme parks, as well as its Peacock streaming service.
Comcast said the goal is to complete the program within a year.
The expectation is that Comcast will be better positioned to grow after the breakup of cable networks, which has seen audiences decline.
The management also said that they believe that the new company will be well established to buy other cable TV networks that may be sold in the future.
The new company will have NBCUniversal’s media group chairman, Mark Lazarus, as its CEO.
“We see a real opportunity to invest and build more scale and I’m excited about the growth opportunities this transition will open up,” Mr Lazarus said in the announcement.
The president of Comcast, Michael Cavanagh, first revealed the plan when he spoke to investors last month.
At the time, Mr Cavanagh said he was looking at a strategy that would create “a new company that is more profitable for our shareholders and integrates our strong portfolio of cable networks”.
Comcast took control of NBCUniversal in 2011 ahead of the broadcast boom. At the time, its cable networks were seen as one of its most attractive businesses.
But a growing number of cable TV viewers are canceling their subscriptions and switching to broadcast platforms. Comcast said the brands that will be included in the program reach about 70 million US.
Earlier this year, Warner Bros. and Paramount Global cut billions of dollars from their cable TV networks.
Comcast is the first media company to legalize the move to record its business.
Walt Disney also considered spinning off its cable networks but ended up abandoning the program.
Shares of Comcast were set to open in New York trading about 2% higher after the announcement.
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