Comcast Corporation (NASDAQ: CMCSA) is moving forward with plans to spin off its cable TV networks, including MSNBC, CNBC, USA, E!, Syfy, and Golf Channel. The decision is part of the company’s broader strategy to reduce its exposure to its traditional cable business, which is losing both viewers and advertisers to the rapid rise of streaming platforms such as Netflix and Amazon Prime.

The newly formed entity, called SpinCo, will operate independently, with NBCUniversal Media Group’s Mark Lazarus named CEO. Comcast will retain control of the NBC broadcast network, the popular Peacock streaming service, and film and television studios. Bravo, another major channel, will also remain on Comcast.

Cable networks being spun off generated approximately US$7 billion in revenue over the past year, but face increasing challenges in the face of the cord-cutting trend. Comcast President Mike Cavanagh is optimistic that the spinoff will position both Comcast and SpinCo for future growth by giving each business more flexibility in a rapidly changing media environment. showed a certain point of view. “We think there may be an opportunity to make some offensive plays,” Cavanagh said during a recent earnings call.

The spinoff is expected to take about a year to complete, and SpinCo will inherit not only the cable network but also digital assets such as Fandango, Rotten Tomatoes and GolfNow. The move will help Comcast focus on its core assets, including its broadband business, theme parks and streaming businesses.

The decision to separate the cable networks follows a trend among media companies to reevaluate traditional assets in the wake of streaming’s explosive growth. Both Paramount Global and Warner Bros. Discovery are already writing down the value of cable networks as viewers continue to move online.

SpinCo has a strong balance sheet and acquisition potential and aims to build further scale in the media industry. Comcast executives believe the separation will make SpinCo an attractive partner for other media businesses and help revitalize the cable network model.