Sky is taking a bold bet by offering a new service for people in UK and Ireland that will allow customers to subscribe and view online TV channels either on PC or Mac even if they are not exising customers.
The cheapest Sky package, aptly called, the "Base Entertainment Pack" offers access to a limited number of channels including Disney Channel, the National Geographic channel and a few more, for £15 per month although it is half price till the end of next month.
More channels will be added in a near future without any price hikes and subscribers will need to install Microsoft' Silverlight application to be able to access the service.
You will have to pay extra to get other Sky Sports channels which, on the face of it means that "Over the air" Sky services are cheaper. Sky's currently offering their Variety pack, free evening/weekend calls and 2mbps Sky Broadband for £17 per month.
Sky's most affordable package that includes all its Sports channels will set you back £36 and Sky customers that are on multiroom or Broadband Max subscriptions will get the new service at no extra charge.
It will be interesting to find out whether customers will be willing to pay for video on demand services which other broadcasters are offering for free - albeit with different content.
Yesterday, the Competition commission lambasted project Kangaroo, the joint venture by Channel 4, ITV and BBC Worldwide which aims to make video on demand mainstream.