The pay-as-you-go service will offer on-demand content across smart TVs, tablets, laptops, smartphones, games consoles and other connected devices.
Set to launch this Summer, Sky's Now TV will first provide instant access to films from Sky Movies, with content from Sky's sport and entertainment channels set to follow suit.
There will be a choice of pricing options, with both monthly subscription plans and one-off payments available.
Jeremy Darroch, Sky's Chief Executive, said “We’ll offer two distinctive ways to watch... the full Sky service... and the peace of mind of a monthly bill; or the flexible, more spontaneous, pay-as-you-go service of NOW TV."
Providing detail on the NOW TV service itself, he added: “It will be available on a wide range of devices and offer instant access to a range of high quality Sky content, with no install and no contract.
Starting with movies, it will soon expand to offer sport and entertainment as well. And customers will be able to pay monthly or rent a movie on a simple, pay as you go basis.”
To receive the latest information, customers can register their interest by visiting NOWTV.com (opens in new tab).
Sky Go launches on Android devices from today, 20th February, bringing all five Sky Sports channels, ESPN, Sky news and 11 Sky Movies channels to Android mobile users.
Only available on selected models at first, the Sky Go app coincides with the addition of more channels to the on-demand TV platform.
The Android app is available now for the following handsets: HTC Desire, HTC Desire S, HTC Desire HD, HTC Incredible S, HTC Sensation, Samsung Galaxy S and Samsung Galaxy S II.
In addition, Sky1, Sky Living and Sky Arts are now available on Sky Go, with Sky F1 coming in a couple of weeks time when the channel launches.
Sky is ramping up the pressure on its pay-TV rivals this morning with a blizzard of announcements to accompany its half year results.
First up, it will launch a new service in the first half of 2012 to enable customers to watch some of its most popular content over the internet.
This will be an alternative to its existing satellite-based subscription TV service.
Those who subscribe to Sky's internet TV package will be able to watch a selection of popular content, including films and eventually sport and entertainment, on their PC, Mac, laptop, smartphone, games console or smart TV – without a dish.
Available to anyone with a UK broadband connection, you'll be able to watch on a pay-monthly or pay-as-you-go basis.
What's more, Sky is investing in its broadband network to expand its coverage to 88% of the UK by June 2013, and will add Sky Broadband Unlimited Fibre from April, giving customers download speeds of up to 40Mbps with no usage cap for £20/month.
And Sky will shortly launch its public wi-fi service powered by The Cloud, giving Sky Broadband customers free access to more than 10,000 hotspots across the UK including Cafe Nero, Pizza Express and Wagamama outlets.
There's more: by the end of February, Sky Go will launch on Android. This will give Sky TV customers access to all five Sky Sports channels, ESPN, Sky news and 11 Sky Movies channels on their Android smartphones, starting with the most popular Samsung and HTC handsets.
Sky Go will be further enhanced with the addition of more channels for viewing on the move, including Sky Atlantic, Sky 1, Sky Living and Sky Arts 1. Sky Sports F1 will be added across all Sky Go platforms from March.
And that's after Sky announced yesterday that BBC iPlayer and ITV Player will be added to the Sky Anytime+ video-on-demand service.
As for its financial results for the six months to December 31st 2011, Sky reports a 6% increase in revenues to £3.4bn with operating profits up 16% from £520m to £601m.
The company says that it now has 10.471 million customers in total, with Sky+ HD in more than four million UK homes and 3.6 million Sky Broadband customers.