Sky takes on Netflix: The £4.99 a month service that connects a TV to the web and lets users watch box sets on pay-as-you-go

In an effort to carve a bigger slice of the online TV market, Sky has extended its NOW TV service to include pay-as-you-go entertainment channels, the Daily Mail reported.

Dubbed the NOW TV Entertainment Month Pass, the service is due to go live at 7am and will offer a contract-free subscription to ten TV channels for £4.99 a month.

These include Sky 1, Sky Atlantic, Sky Living, Sky Arts 1, Discovery, MTV, Comedy Central, GOLD, Disney and Fox.

Other supported devices will be introduced as part of a phased roll out over the coming months including iPhone, iPad, selected Android smartphones, Xbox, LG Smart TVs and selected LG media devices.

Customers are able to register four devices at any one time.

NOW TV already offers access to Sky Sports and Sky Movies, through the Sky Movies Month Pass and the Sky Sports Day Pass.

Using the Now TV box and HDMI cable, users can connect to the service via their TV wirelessly from a home network.

The box lets them watch online catch-up services such as BBC iPlayer and Demand 5, as well as listen to music and use Facebook on an app.

Sky claims its offering rivals the likes of the £249 YouView set-top box, Roku and Apple's respective boxes, that cost £49.99 and £99 respectively, and the new Chromecast dongle from Google.