Sky is finishing up its low-cost pay TV service Igloo within a year, as on demand services continue to increase in popularity among Kiwi customers.

Igloo will be done and dusted by the end of March next year, however the service's "modest but loyal" customers will have the option of switching to Sky's basic package for the same price for the following four months.

It offered viewers 13 pre-paid channels, pay-per-view movies, and sports options.

The service launched in 2012 and in the four years since, on demand subscription services like Netflix, Lightbox and sky's own Neon have changed the way Kiwis want to watch television.

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The Igloo box will continue to work as a Freeview box but without any technical support or the on-screen TV guide.

From March 31 2017, Igloo Channel Packs, Front Row events and Igloo on demand will no longer be available.