When it first launched Now TV in 2012, it seemed that Sky's answer to Netflix and Lovefilm was going to struggle against its two low-cost rivals. But following some recent innovations and changes to the service - it now really could be a contender.
The Now TV Box
First they launched the Now TV Box. Basicly a re-badged Roku LT, this tiny box gives access to Sky Sports (day pass), Sky Movies (channels and on demand), BBC iPlayer, demand 5, vevo, spotify (premium). 4oD and Sky Store are coming soon. Unlike the Roku LT it does not allow access to Netflix. It is however priced at a very reasonable £9.99.
The pricing
In setting its prices, Sky has a tricky balance of pricing Now TV at a low enough level to compete with Netflix/Lovefilm (£6/£5 a month), but without cannibalising its ten million pay tv subscribers - who pay between £21 and £70 a month.
The Sky Sports day pass (£9.99 for 24 hours) does seem expensive, but split between friends, on a couple of Sundays a month - it could be good value compared to the ongoing cost of Sky Sports. However, at £15.99 a month; the cost of the Sky Movies pass, seemed very steep compared to its two rivals. Sky has now lowered this price to a more sensible £8.99 a month.
The Content
The latest development from Now TV is the Entertainment pass. For an introductionary price of £4.99 a month, it provides the ten channels above - including for the first time, access to Sky Atlantic without a dish. There is also on demand (catch up and box sets) for each channel.
The programming mix is compelling - with almost the entire output of HBO on Sky Atlantic; Modern Family on Sky One and The Walking Dead and American Horror Story on FOX. Amongst all this first run content, repeats channel GOLD does seem a little out of place. Watch or Universal Channel might have been better alternatives.
There are some shows which Sky don't have streaming rights for. So there is no Simpsons or The Middle at the moment. Sky say this issue will lessen as time goes on.
The Entertainment pass introductory price is valid until March 2014. Assuming the ongoing price isn't that much higher, Now TV looks like a very competative product.