Mr. Chao, as president of USA Cable, oversaw the USA Network and Sci-Fi Channel.
USA's cable group will now become part of its overall entertainment division, which also includes Studios USA and USA Films.
Michael Jackson next week takes over as president-CEO of USA Entertainment. Doug Herzog, president of the USA Network; Bonnie Hammer, president of Sci-Fi Channel; and Patrick Vien, president of USA's Emerging Networks will report to Mr. Jackson.
Mr. Chao held his post since March 2000.