Sky Television has unveiled a new subscription
video-on-demand service that will be free for MySky customers
and available for one-off purchases on tablets and mobile
phones by non-Sky subscribers.
Chief executive John Fellet is negotiating a name and
finalising eight rights deals for content. It was expected to
be up and running in the fourth quarter of 2014 and would
Content for the subscription video-on-demand service (SVOD)
would include material that appears on Sky's Soho channel as
well as recent release and library material on movie
channels. It gave consumers the option of watching content
without paying the subscription for full linear channels,
The deal continues Sky TV's close relationship with Vodafone
which will bundle the service with its own TV offering, which
is linked to the Sky linear service.
Telecom is to unveil its subscription video-on-demand service
soon but Fellet said the announcement was brought forward to
respond to industry rumour rather than pipping Telecom to the
While SVOD is available through Quickflix and some consumers
can illegally obtain US service Netflix from US servers, the
arrival of a corporate in the market marks a significant
Pricing was still being resolved through market research.
There has also been speculation the expanding Netflix SVOD
has been trying to buy New Zealand and Australian rights to
Fellet said Sky aimed to be profitable on the new service
within three years.
Fellet declined to comment on speculation that Sky intended
to buy the internet service provider Orcon.