Comcast Corporation announced on Thursday that it is considering a strategic move to separate its cable networks into a standalone entity, potentially creating a publicly traded company dedicated to its portfolio of cable channels. The decision, which would not include its NBC broadcast network or Peacock streaming service, underscores Comcast's focus on bolstering its streaming and digital assets as traditional cable television faces a steady decline.

Mike Cavanagh, Comcast's president, shared details of this exploration with investors during the company's third-quarter earnings call, hinting that the separation could give Comcast greater flexibility to invest in streaming and adapt more nimbly to the changing entertainment landscape. "We are exploring a new, well-capitalized company owned by our shareholders and comprised of our strong portfolio of cable networks," Cavanagh said, adding that discussions are still preliminary.

The consideration to spin off its cable networks-such as Bravo, Syfy, USA Network, and news outlets like MSNBC and CNBC-comes as pay-TV operators struggle with massive subscriber losses as viewers increasingly abandon traditional TV bundles in favor of streaming. The industry's challenges are stark: Comcast reported a loss of 365,000 cable TV subscribers during the quarter, reflecting a broader trend. Analyst firm MoffettNathanson estimates that the industry saw over 4 million traditional pay-TV subscribers drop their service in just the first half of this year, marking one of the worst periods on record.

"Like many of our peers in media, we are experiencing the effects of the transition in our video businesses," Cavanagh acknowledged, noting that the company is weighing the best route forward for its assets as cable's profitability remains challenged by the relentless march of cord-cutting. Comcast's strategy follows similar deliberations from other major media companies, which are also re-evaluating their linear TV portfolios. Warner Bros. Discovery took a $9.1 billion write-down on its TV network assets in August, and Disney CEO Bob Iger hinted last year at potentially selling its linear TV units, though interest in that idea has since cooled.

Despite these headwinds, cable television remains a critical revenue driver, generating the profits that fuel investments in streaming platforms. As Cavanagh observed, linear TV's established profitability is essential for streaming ventures like Peacock. Comcast's streaming platform has grown steadily, gaining traction by broadcasting high-demand events like the Paris Summer Olympics. While Peacock remains a key focus, Cavanagh indicated that Comcast is also open to new streaming partnerships, though he noted that the complexity of such ventures has kept any concrete plans in a nascent stage.

The industry has seen a wave of strategic shifts aimed at adapting to the cord-cutting era. Comcast itself has a track record of exploring joint ventures in streaming, having held a stake in Hulu before Disney acquired full control. Reports also suggest Comcast briefly explored a joint streaming venture with Paramount, although Paramount recently finalized a merger with Skydance Media instead.

Cavanagh's comments echo a trend among cable TV giants in exploring divestments or restructurings of their linear assets. Still, no major U.S. media company has fully separated its cable holdings from its streaming arm, with most opting for partial asset sales rather than a wholesale division of their traditional and digital portfolios.

Comcast's exploration of a spinoff, however, could signal a more concrete move than previous efforts in the sector. "The transition in our video businesses demands that we examine all options," Cavanagh said. While exact details remain under wraps, the strategic reevaluation may help Comcast better align its resources with consumer shifts toward digital and streaming-first content.