According to the BBC Sky is to offer a complete subscription television package without a satellite dish for the first time.
From 2018, people who cannot have a dish installed will be able to receive Sky over the internet instead.
The company said the move would help it reach a further six million customers across Europe.
One analyst said the development was a “logical step”, but customers would need to live in an area with fast broadband speeds to benefit.
“I don’t think Sky is giving up on other things but they see this as an opportunity,” said Toby Syfret, TV analyst at the Enders consultancy.
“There are about two million households in the UK, mostly in dense urban areas, where people can’t put up dishes.
“If they can offer the full Sky experience without the need for a dish, that is broadening their offer.
“But there will be questions about which homes can get it. Not everybody has the necessary broadband speed.”
Sky is also facing competition from new rivals such as BT and TalkTalk, which deliver pay-TV over the internet.
Sky already sells its Now TV streaming service, offering a small selection of television channels and a library of on-demand programmes over the internet.
However, the company told the BBC its new dish-free option was designed to provide a more complete service.
