Wednesday 29 June 2016 9:38 pm

Sky launches bundle to give Netflix the chills

Broadcaster Sky is moving into direct competition with streaming upstarts like Netflix with a contract-free online TV, internet, and phone bundle.

Sky’s digital service, Now TV, was launched in 2012 and has recently come under pressure from Netflix and Amazon’s TV and movie streaming service Prime Video.

Netflix works on a rolling monthly subscription, while Amazon Prime customers pay a yearly up front fee which includes offers on deliveries.

Sky is charging a minimum of £9.99 plus line rental for the service and has two separate set up fees for both TV and broadband.

“We know people want the freedom and control of a no strings relationship when it comes to choosing their TV, broadband and call package,” said Gidon Katz, managing director of Now TV.

“This is a hugely significant move as Sky continues to push the boundaries further and the battle for the living room intensifies,” said Paolo Pescatore, director of media at CCS Insight.

“Undoubtedly, Sky will add mobile to its newly created Now TV bundle which will generate further appeal across all demographics. This latest move puts pressure on rivals to step up and to bring truly converged multiplay bundles to the market.”

Ewan Taylor-Gibson, broadband and TV expert at uSwitch.com, has criticised bundled products that often tie customers in for at least a year: “One of the biggest flaws of bundled deals is that, if you’re unhappy with one service, it’s often much harder to get out.”

Netflix grew its user base by 1.4m between 2014 and 2015, outpacing the growth of Now TV, and Amazon.

Earlier this month Sky announced it would premiere a new film every day on its movie channels amid growing competition from online streaming sites. Alongside the change in strategy, Sky is rebranding Sky Movies as Sky Cinema, falling into step with its operations across Europe – Germany, Austria and Italy.