Sky launches Now TV on-demand service

Sky takes on Freeview and YouView with a set-top box that gives access to free on-demand TV, plus films and sport with monthly or one-off fees.

Satellite broadcaster Sky has launched a new set-top box that allows TV viewers to watch catch-up and on-demand TV, films and sport for a budget price via broadband. But is this budget route to better television a hit or a miss?

Now TV for under £10

For your £9.99, you get two things: one set-top box and one remote control.

Getting the Now TV box up and running is nice and simple. All you have to do is plug it in and connect it to your TV via the HDMI cable which comes included. So before you buy one, make sure your TV has a free HDMI outlet!

Then you just need to connect to your wireless internet.

Smart TV from Now TV

As well as allowing you to watch Sky's enormous back catalogue of movies, plus live sports events, Now TV brings a host of other free catch-up channels, on-demand services and apps to your now broadband-connected TV. These include the BBC's iPlayer and BBC News 24, Sky News, Channel 5's Demand 5, Facebook and Spotify.

However, Now TV does not provide access to ITV Player and 4oD and to movie apps such as Lovefilm and Netflix. Then again, you can install new apps by pressing the apps button on the remote and selecting the required app. As Now TV box's software can be updated online, Sky will add new features and services over time.

Another disappointing feature of the Now TV box is that it does not stream video in full 1080p HD (High Definition). Instead, output is at only 720p HD, which doesn't look quite so sharp on larger screens.

Buy from Sky

Even though this box is remarkably cheap, BSkyB chief executive Jeremy Darroch has admitted that Sky will make a small loss on each sale. In other words, this box is a 'loss leader' aimed at luring Freeview customers over to Sky's premium content.

Sky's thinking behind Now TV is to get you to access its paid content, watching films or live sport on a pay-per-view basis, or signing up to subscription services such as Sky Sports and Sky Movies channels. Then again, if you don't want to pay for television content, then Now TV does allow you to watch free programmes online.

Although the Now TV box is dirt-cheap, Sky's premium programming is anything but. To watch all six Sky Sports channels will cost you £9.99 for a one-day pass (the same as the set-top box itself). To watch Sky Movies channels costs £15 for a monthly pass, but Sky is offering new customers a 'try before you buy' 30-day free trial, followed by a further month for £8.99.

The verdict: cheap and cheerful

If you don't already have a broadband-enabled TV, then you really can't go wrong by upgrading your set with Now TV for less than £10. You don't need a satellite dish and there are no set-up, installation and subscription fees and no burdensome, lengthy contract.

Nevertheless, you should go easy on the expensive pay-TV services such as Sky Sports and Sky Movies. Otherwise, Now TV could end up costing more each month than a full Sky TV subscription package!

Compare broadband, phone and TV deals at broadbandchoices.co.uk

More on TV:

BT Sport versus Sky: The battle for football fans

Sky to raise TV costs by up to 10%

Clubcard TV: Tesco launches rival to Netflix, Lovefilm and Now TV

Netflix vs Lovefilm vs NOW TV: the cheapest way to watch films