Sky has revealed more details about it new online TV service, which will be called Now TV.
The service will rival NetFlix and Amazon-owned Lovefilm by offering viewers access to films, with sport and entertainment programmes to be added later.
Users do not have to be Sky subscribers and have the option of accessing content on a contract or pay-as-you-go basis.
Sky’s chief executive Jeremy Darroch shared details of the service, which was first announced in January: “As the quality of the TV experience over broadband has improved, people have become more willing to consume content in different ways.
“That presents a great opportunity to distribute our programmes which wasn’t there even a year or two ago.â?
The companyâs existing internet-powered service, Sky Anytime, will continue to be offered to TV subscribers with Now TV offered as a premiuim alternative.
Richard Broughton, senior principal analyst for IHS Screen Digest, told the BBC: âNowTV will pose a huge challenge to internet TV competitors Netflix and Lovefilm given its existing relationship with content producers.
“Netflix and Lovefilm have both been buying movie rights – but they don’t have the catalogue that Sky has.
“If Sky come out with a similar price range, it will be a major concern to Netflix and Lovefilm. One of the advantages [Netflix and Lovefilm] had in that past is that they’ve been substantially cheaper than subscription TV services.”