Sky TV to begin streaming through broadband networks

Sky TV customers will no doubt be welcoming the news that the firm is planning to provide its service through broadband networks.

Until now, Sky users have had to endure a satellite dish being attached to the front of their homes. Now, it seems Sky is planning to use an internet protocol (IP) streaming model that uses broadband connections to reach people's homes, doing away with the need for the unsightly dishes.

In its latest six-month results, Sky stated: “This is a major development for Sky that will open up headroom in existing markets, improve our cost to serve for some customer segments, and offer a future way to take Sky into new markets."

New customers of Sky are also expected to welcome the move with commentators claiming that the upfront joining fees for users could fall as there is no need for expensive hardware when using a streaming service. Some potential Sky customers are also unable to use the service if they are unable to have satellite dishes attached to their homes for aesthetic reasons. The change to broadband opens the service up to these users.

Sky said that the changes have largely been prompted by the increasing pressure from competitors who offers streaming services, including Amazon and Netflix for example. Austrian and Italian Sky customers will be the first to enjoy the broadband streaming service, followed by the UK in the near future, according to the company.

The Sky Q TV service already requires a box with broadband connectivity in order to view on-demand and catch-up TV, so the move to full internet-protocol streaming is the obvious next step.

Sky's group chief executive, Jeremy Darroch, commented: “We expect the consumer environment to remain challenging, however, we remain confident in our strategy and our ability to execute our plans."