Sky's new internet TV service will provide access to some of the provider's most popular content, Chief Executive Jeremy Darroch has claimed.
He explained that NOW TV - which was unveiled earlier this week - will offer hundreds of films from Sky Movies among other programming.
Users will be able to watch Sky content on a wide range of broadband-connected devices.
Mr Darroch said the launch of a second brand is "an exciting opportunity" for the firm and the rationale is very simple.
"Having two brands will allow us to meet the needs and preferences of different customer segments more effectively," he claimed.
"We'll offer two distinctive ways to watch: the full Sky service for the whole family, complete with the widest range of channels, high quality products like Sky+, HD and Sky Go, and the peace of mind of a monthly bill; or the flexible, more spontaneous, pay-as-you-go service of NOW TV."
And because NOW TV will be 'powered by Sky', customers will know they can expect a high quality experience from a provider they can trust, Mr Darroch added.
"We believe we can offer even more customers a product that's just right for them," he stated.