Sky warned of Now TV risk

Sky has been warned that the launch of its Now TV streaming service is not without risk.

Ted Hall, a senior analyst on Informa Telecoms & Media's TV research team, said the proposition - which launches today (July 17th 2012) - could prove more attractive than the satellite broadcaster initially intended.

Budget-conscious consumers could be persuaded to cancel their pay TV subscription with Sky and start enjoying content on a pay-as-you-go basis with Now TV, he explained.

The move to make Sky Movies - and later Sky Sports - available without a basic tier subscription also represents a "potentially dangerous" shift away from the bundled approach of selling popular channels with those that are less desirable, Mr Hall noted.

"This could lead many to question why they need a traditional subscription when the option to pay for only the content they actually want is available as an over-the-top alternative," the analyst commented.

Now TV, which is currently available on PC, Mac and selected Android devices, allows people to rent movies for as little as 99p.

Sky Sports is due to launch on the service before the end of the year.