BSkyB to launch internet television service

UK pay-television broadcaster BSkyB will launch a new online television service, giving access to its Sky Sports channels as well as other content, in the first half of this year.

Bloomberg reports that the service will allow households to download and stream programmes on Sky channels, paying via a range of flexible tariffs that do not require signing a contract. It will be available via computers, smartphones and tablets, internet-connected televisions and games consoles.

“The service will start by offering movies, but will soon expand to offer sport and entertainment as well,” Sky said. “Alongside the continued growth of our satellite platform and existing wholesale arrangements, this will be a new way for us to reach out to consumers who love great content, but may not want the full Sky service.

“With no need for significant infrastructure investment, the service will open up a new opportunity for customer growth and allow us to monetise our content more widely.”

Sky’s sports content includes football from the English Premier League, Scottish Premier League, English Football League, Uefa Champions League and Europa League, and Spanish La Liga; Formula One motor-racing; England national team and European Cup rugby union; the England and Wales Cricket Board’s domestic rights; and golf from the US Open, Ryder Cup, and US and European PGA Tours.

Sky’s service will face competition from rival internet streaming services including YouView, being established by a consortium of free-to-air broadcasters, and Netflix, the US-based company which focuses on films and drama series.

Netflix launched in the UK and Ireland earlier this month. It said it is unlikely to bid for English Premier League domestic rights in the next cycle, from 2013-14 to 2015-16, when they come on the market this Spring, as it plans to focus on its core business of films. Sky’s English Premier League rights are its most important subscription-driving sports property.

YouView is set to launch later this year. It will offer programming from UK public-service broadcaster the BBC, commercial broadcasters ITV, Channel Four and Channel Five, and is also backed by the BT and TalkTalk telcos.