The deal means that IP Vision's Fetch TV boxes will offer pay-per-view access to Sky content including Sky Movies, Sky Sports and a range of general entertainment channels, without the need for a Sky subscription.
IP Vision's boxes already offer access to Freeview channels and the BBC iPlayer, and unlike BT Vision and Virgin Media's offerings can be used with any internet service provider.
The agreement is part of Sky's strategy to make its content available on a broad range of platforms. It also fulfils IP Vision's strategy of partnering with as many third party providers as possible.
The Fetch TV SmartBox, which connects to any broadband connection, incorporates a Freeview+ unit allowing users to record, pause and rewind live TV. The single tuner box retails at £130, while the twin tuner can be bought for £219.
Sky Player will be a standalone service on the Fetch TV box, offering a range of live TV channels and associated on-demand programming from a variety of broadcasters.
Griff Parry, director of On Demand at BSkyB, said: "Offering Sky Player through the Fetch TV box gives UK consumers yet another way to experience Sky content, complementing the services already available on satellite, PC, games consoles and mobile.
"It also demonstrates the continued development of innovative IP-enabled video services.
"As more and more commercial players harness broadband distribution to extend consumer choice, there's an opportunity for all content owners to reach new audiences."