Yorkshire gets jobs boost as Sky prepares for internet TV battle

The new service, which will offer movies and sport without the need for satellite dishes, will let Sky to take on newer entrants such as Netflix and Lovefilm.

In a separate announcement yesterday, Sky revealed plans to create 1,300 jobs over the next two years in the UK and Ireland, including 150 in Yorkshire.

Sky’s finance director Andrew Griffith said most of the jobs – about 120 – would be at the group’s call centre in Sheffield. The other 30 will be at its customer service centre in Leeds.

Initially the new internet service will allow customers to pay to download films. Sky will then expand this to include sport and entertainment.

“We’re seeing more and more devices, such as tablets, smartphones and games consoles, that can be connected to the internet,” said Mr Griffith.

“With this service people can dip in and out and buy what they want. They can subscribe on a monthly basis, they can rent a movie for an evening or they can watch a sports event over a weekend.”

The recent expansion into the UK of Netflix, which allows customers to pay to download movies, and the Lovefilm download and rental business has created new competition for Sky.

The firm will also have to contend with the launch of YouView, an internet-connected set-top box scheme involving the BBC, ITV and BT, in the summer

The service was announced as Sky reported that 40,000 households had signed up to its services in the three months to December 31, down from 140,000 in the same period last year.

Despite the slowdown, operating profits rose 16 per cent to a record £601m in the six months to December 31 after Sky sold more telephone and broadband packages to existing customers. Revenues rose six per cent to £3.4bn.

Asked about the competition from Netflix and Lovefilm, Mr Griffith said: “We’re not complacent. The world has always been very competitive. Netflix and Lovefilm are doing very well at replacing the DVD market. For Sky, I don’t think they will be too big a challenge.”