UPDATED 7:50pm: Sky TV's announced the details of its subscription video-on-demand service, to launch in December.

It's one of two offerings announced at its Annual General Meeting this afternoon.

The service will be called Neon, and will be available free for the first 30 days.

It'll then cost $20 per month, offering unlimited movies and programmes over the internet.

Chief executive John Fellet says also next month, MySky subscribers will get a software package download that will allow them to select content on demand.

It's based on US Netflix, but subscribers in New Zealand who have access to Netflix pay around $10 a month.

Mr Fellet says their Neon model will work here.

"For instance Netflix has 15 million subscribers nationwide, so Neon as a business kind of looks Netflix so it works for them, I'm not sure why it wouldn't work for us."