By MATT OTT AP Business Writer

WASHINGTON (AP) — Comcast will ax many of its cable TV networks that were once at the heart of the entertainment giant as people increasingly switch their cable TV subscriptions for streaming platforms.

These one-time stars for Comcast’s NBCUniversal cable television networks include USA, Oxygen, E!, SYFY and the Golf Channel, as well as CNBC and MSNBC. Movie ticketing platform Fandango and movie rating site Rotten Tomatoes will also become part of the new company.

Peacock will remain with Comcast, as well Bravowhich provides meaningful content for Peacock streaming service.

Comcast telegraphed the potential change last month as it released quarterly earnings before confirming Wednesday that it would divest assets that generated about $7 billion in revenue in the 12 months to Sept. 30. That represents about 5.5 percent of Comcast’s total revenue for the period, according to the company.

But there is a declining number of cable subscribers as millions cut the cord and increasingly rely on streaming platforms for entertainment.

“Like millions of U.S. consumers, Comcast has finally cut the cord, dropping most of its cable TV channels,” said Paul Verna, principal analyst at market research firm eMarketer. “The benefits are clear for Comcast. It is divesting money-losing assets from a tech and media empire that will keep its lucrative business (the internet service provider), theme parks, broadcast networks and the Peacock streaming service.”

But how this new spin-off company will fare independently is less promising, he adds — again pointing to cable’s “hemorrhaging subscribers and ad revenue.”

Mark Lazarus, current president of NBCUniversal Media Group, will serve as chief executive of the new entity. Anand Kini, NBCUniversal’s current chief financial officer, will take on the same title with the new company, as well as the role of chief operating officer.

“As an independent company with these outstanding assets, we will be better positioned to serve our audience and generate shareholder returns in this incredibly dynamic news, sports and entertainment media environment,” Lazarus said Wednesday.

Comcast expects the new company to have the financial flexibility to be “a potential partner and acquirer of other complementary media businesses.”

The spin-off is expected to be completed in about a year, the entertainment giant said, pending financing and approval from its board of directors and government regulators.

Shares of Philadelphia-based Comcast were basically flat on Wednesday.

Like other cable companies, Comcast in recent years has shifted its business focus from traditional cable to streaming and other sources of revenue, such as its movie studio, theme parks, and wireless and home Internet services .

In its most recent quarter, Comcast reported that paid subscribers to its Peacock streaming channel grew by 3 million, or 29 percent, to 36 million subscribers. Peacock’s revenue rose 82% to $1.5 billion during the period.

Peacock launched in 2020 and, after a confusing, broken start, has recently taken off, boosted in part by the platform’s success and popularity during the 2024 Paris Olympics.

Peacock streamed all 329 medal events and more than 5,000 hours of coverage during the Games, with viewers streaming more than 23 billion minutes of Olympic coverage led by Peacock. That’s a 40 percent increase over all previous Summer and Winter Olympics combined, Comcast said.

Comcast reported more than $32 billion in revenue and a profit of $1.12 per share in its most recent quarter, boosted by the summer success of “Despicable Me 4,” which grossed more than $1 billion worldwide.

The company expects to open its Epic Universe theme park in Orlando next May.

___

AP business reporter Wyatte Grantham-Philips contributed to this report from New York