BSkyB ventures into pay-TV

British Sky Broadcasting (BSkyB) has stepped up its battle against the Lovefilm and Netflix online movie providers with the launch of a new Internet TV service, as subscriber growth among the pay-TV group's traditional viewer base slows, FT.com writes.

On Tuesday, the satellite broadcaster, controlled by Rupert Murdoch's News Corp., said it would offer its content, including Sky Movies, to the 12.5 million UK households that do not subscribe to its services.

Scotsman.com reports that the new product will initially allow customers to pay to download films without a contract or a satellite dish, but plans to expand its offer to include sport and entertainment soon afterwards.

Viewers will be able to watch content on devices connected to the Internet, including PCs, laptops, smartphones, gaming consoles and televisions - while they can choose whether to pay monthly, or rent a film on a pay-as-you-go basis.

According to Bloomberg Businessweek, BSkyB, with more than 10 million subscribers, is facing increased competition from Internet TV offerings after US streaming service, Netflix, started offering movies and TV shows in the UK this month.

BSkyB is also trying to distribute more content on mobile phones and games consoles, outside its traditional satellite transmission.