BSkyB squares up to Netflix in Blighty

LONDON -- The uber competitive BSkyB is to launch its own on-demand service as it attempts to head off competition with Netflix and impending U.K. smart TV service YouView. Announcing the move as it revealed six monthly figures that showed a slowdown in the number of new pay TV subscribers, the paybox's CEO Jeremy Darroch claimed the initiative would offer "a distinctive" new choice to the 13 million U.K. households that do not buy pay TV. He added: "This new product launch will build on our early leadership in multi-platform distribution. "It will allow us to make our expertise and investment in content and technology work even harder, extending our options for continued growth." BSkyB's on demand offer will bow in the first half of the year. Sky Movies will be available from the start, with sport and entertainment added later in the year. Consumers will be able to choose from a variety of pricing options, including unlimited monthly pay-as-you-go access. This marks a significant departure from BSkyB's traditional subscription-based business model. Darroch said: "Alongside the continued growth of our satellite platform, this will be a new way for us to reach out to consumers, but may not want the full Sky service." Netflix has got off to a strong start in the U.K. and the much-delayed YouView, whose backers include the BBC and BT, is expected to bow late in the spring. BSkyB's six-monthly figures showed that the satcaster added 40,000 new TV customers in the second quarter to Dec. 31 -- missing analysts' forecasts of 58,000 and down on the 140,000 net additions in the same period in 2010. Competition in the U.K. VOD space further increased on Tuesday as Miramax and paybox BT Vision inked a licensing agreement that will bulk up the service's U.S. content for Brit customers. Pics available under the deal include "Chicago," "Pulp Fiction," both "Kill Bill" pics, "The English Patient," "Good Will Hunting," "The Talented Mr. Ripley," "The Aviator" and the first three instalments of the "Scream" franchise. The digital terrestrial and broadband service, owned by local telco BT, already offers fare from Warner Bros., Universal and Film4. Diana Lodderhose contributed to this report. Contact the Variety newsroom at news@variety.com