Sky's broadband TV service will be extended to include entertainment this autumn, coinciding with the expected launch of BT Vision, a rival service offering entertainment content from BBC Worldwide, Cartoon Network and Paramount and others.
Another rival service from Orange with content from Freeview is expected to debut later this year.
Sky has been encouraged by early results of its sports and film service, which allows access to 300 movies, with more than one million downloads since its launch in January.
Sky declined to reveal the exact line-up of entertainment programming it will offer. However, managing director of channels and services, Dawn Airey, told Media Week she was keen to use the high speeds offered by its broadband service to provide services for users to interact with Sky and to generate their own content.
She added she was keen to monetise the traffic to online properties, particularly the Sky New website, and expected at least 40% growth in online revenues next year.
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