Sky has announced details of its new service, NowTV, which will offer films in direct competition to Netflix and Lovefilm. The service, which will be open to people who do not have a Sky subscription package, hopes to move to offering sport and entertainment at a later date.
Jeremy Darroch, Sky’s chief executive, said, “As the quality of the TV experience over broadband has improved, people have become more willing to consume content in different ways,” he told attendees. “That presents a great opportunity to distribute our programs which wasn’t there even a year or two ago. With the long-awaited explosion of connected devices now upon us, this opportunity is only going to grow. And it’s something we believe is highly complementary to our existing service.”
It is believed that Sky is launching the service in a bid to gain revenue from the 13 million homes in the UK that do not have any sort of Sky subscription.
Richard Broughton, a senior principal analyst for HIS Screens Digest, said “To date, Sky’s always been concerned about keeping the value of its core service by not producing products that could potentially undermine that. The Sky brand is seen as the premium option. If they’re introducing a new service, they don’t want to confuse consumers.”
It is believed that the growth of connected devices that has occurred in recent years has also played its part in Sky’s decision and with faster broadband now consistently available people are able to watch movies on the go as well as in their home.