By Victoria Woollaston
PUBLISHED: 04:39 EST, 26 July 2013 | UPDATED: 05:02 EST, 26 July 2013
There's been a rise in popularity of the so-called Smart TV - a television set with an internet connection that gives access to on-demand services as well as apps such as YouTube, Facebook and Spotify.
Yet these sets don't come cheap and can cost up to £5,000.
Now, Sky has launched a cut-price device that turns any television set into a Smart TV for just £9.99.
The Now TV box plugs into a set using a HDMI cable and then connects wirelessly to a home network, letting you watch online catch-up services such as BBC iPlayer and Demand 5, as well as listen to music and browse the web.
It is set to rival 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, priced in the U.S at $35 (£22).
Plus, the £9.99 Now TV price includes shipping.
The Nox TV box is around the same size as a beer mat - 84mm x 84mm x 24mm - and connects to any TV that has a HDMI port.
The box then connects wirelessly to a home Wi-Fi network and turns the TV set into a web-enabled device.
Once the Now TV box is connected, users can access the box's interface by changing the output on their TV and navigate through menus and services using a special remote control.
On-demand services including BBC iPlayer and Demand 5, the catch-up service from Channel 5, is available free of charge, without a contract.
The Now TV box also gives access to Sky Sports as well as Sky Movies for a daily fee of £9.99 or monthly subscription starting at £8.99 for three months.
Users can additionally listen to music through Spotify or browse Facebook through dedicated apps.
GOOGLE CANCELS FREE NETFLIX OFFER WITH THE CHROMECASTThe news follows the announcement of Google's Chromecast earlier this week that works in a similar way to the Now TV box by plugging into a TV's HDMI port and letting users stream content from a tablet, phone or laptop to their TV screen.
According to Now TV, over two thirds of Brits have now taken advantage of on-demand services on their main TV sets - whether via Smart TVs or other connected devices.
Two in five people stream must-see shows or movies on a weekly basis.
Over half the UK (56 per cent) use more traditional internet-connected devices such as tablets, smartphones or laptops to access TV on demand whilst in the home.
Figures from Blinkx, the internet media platform, found that 86 per cent people aged 18 to 34 share videos online after watching, and 59 per cent are sharing on a regular basis.
Recent rumours suggest that Apple is looking at ways to remove adverts from its upcoming TV set in a bid to boost sales if and when the device launches later this year.
The company has reportedly spoken with broadcasters about the deal and is even thought to have offered to compensate them for any revenue they lose as a result.
Other rumours claim the TV set could be controlled using a ring worn on a viewer's finger.
Sky's Now TV launched in July 2012. It has helped boost the number of Sky TV customers to 14.8 million with average revenues per user at £577 a year.
Sky has also said it is expanding its Sky Go mobile TV service with another 10 channels, is adding 20 new channels to its catch-up TV service, and plans to upgrade its TV boxes to hold more content.
Sky said 35 per cent of its customers are now taking TV, broadband and phone services, up from 32 per cent last year.
But its churn rate - how many customers are leaving - increased to 10.9 per cent from 9.9 per cent.
Its Now TV device will also challenge the £299 YouView box, a joint venture between BT, TalkTalk, the BBC, ITV, Channel 4, Channel 5 and Arqiva which also offers on-demand TV for free.
YouView was criticised for its high price compared to other services on the market yet announced in July it gained 400,000 customers in the eight months since its launch and streams 2.2 million video-on-demand views every week.
In other TV news, BT yesterday revealed it has already signed up half a million customers to its sport channels ahead of their launch - although most of these were existing subscribers.
It hopes to win over new customers and defectors from rivals once the Premier League season launches on August 17.
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