Sky has just announced their new Sky by Broadband service which aims to offer hundreds of movies from their Sky Movies back catalogue over the Internet...and what's more, it's free.

Well, not entirely. The BBC are carrying the story and it's unfortunately not really free. You really do need to be a Sky satellite subscriber to begin with as your digital card number is required, and that includes subscription to at least two "premium" channels. Oh, okay, so even more limited then?

Sky by Broadband provides 200 films free to digital subscribers, although they must have a broadband connection and a PC using Microsoft Windows XP.

The company says it hopes to supply more than 1,000 films from Sky Movies' back catalogue through broadband.

Sky Sports subscribers will also be able to download sports clips through the broadband service.

Sounds good though, I can just see it already. A little trade in the online accounts from those who subscribe and don't want the online service to those who don't have Sky and would like to watch the movies. There could be a little earner in there!