BSkyB's Internet TV Service Will Have a New Brand - 'Now TV'

UK pay TV platform leader BSkyB (NYSE: BSY) will take a bold step for its upcoming satellite-less, over-the-internet TV packages by launching them under a whole new brand, “Now TV”.

The Now TV placeholder website is now live, taking consumers’ expressions of interest.

Darroch did not exactly specify why Sky needs a separate brand in over-the-top (OTT). But it may be about balancing caution with the brave new connected TV opportunity. If Sky branded its new OTT service “Sky” and made it cheaper, disgruntled satellite subscribers may downgrade to the OTT option.

Another company which span off a separate entertainment brand last year was Netflix (NSDQ: NFLX), which caused controversy when it created “Qwikster” to operate its DVD rental business separate from its streaming business.

After pioneering pay TV in the UK two decades ago, Sky last year hit its target of achieving 10 million customers for its satellite pay service. Satellite customers now get access to their channel bouquets through Sky web, mobile app and connected TV app channels.

But this January Sky said it would now offer its channels without a long-term contract and without satellite to customers over an array of internet devices, including connected TV and iPad. Packages will be movies, entertainment and sport, but the firm may also peel off individual shows for payment.