Comcast (CMCSA) is set to create a separate company that will house most of its cable networks. The new entity will encompass popular channels including USA Network, NBC, MSNBC, Oxygen, E!, Syfy, and the Golf Channel.

Bank of America Securities senior media & entertainment analyst Jessica Reif Ehrlich tells Market Domination that the spin-off "makes sense." She explained that broadly throughout the industry, traditional media companies are strategically evaluating which assets to retain and which to divest to drive continued growth.

"The cable networks are clearly in a very challenged universe," Ehrlich notes. "I think this is the beginning of what could be industry consolidation or an industry roll-up of cable networks." She further emphasizes that there are potential "efficiencies" to be gained by combining multiple media companies, suggesting that Comcast's spin-off could create opportunities for improved revenue, margin, and EBITDA growth.

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This post was written by Angel Smith