Sky is to launch a new Pay as You Go TV Service, Now TV, this service will be subscription free and allow the user to pay only for the content they want to watch.
Now TV will launch on a wide range of devices, presumably all those supported by Sky currently and maybe others as well. To start, you will be able to view shows and movies, but sports and other entertainment will follow. This allows Sky to provide a service to compete against Lovefilm and Netflix, but also offer content the others cannot like Sports.
The service is due to launch later this year for anyone who wants it (a Sky broadband connection won't be required), with more details on pricing to follow as well.