Fan Pass will allow customers to pick up season rights for sports such as Super Rugby, NRL Rugby League and Formula 1 with high-definition pictures that can be viewed online and on a TV through a computer device.
A season pass for each competition will cost $299 with reruns available throughout the year. It will cost $69 a month and $19.90 a week and Sky expected there would be demand for weekly passes at the end of sport seasons.
The launch of Neon and Fan Pass underline the intense competition building up this year in the pay TV market.
Sky is countering new entertainment players such as Spark's Lightbox which launched in August last year, and the US service Netflix, due to start next month.
Lightbox has been packaged as a free offer with some Spark broadband packages and recently formed a joint venture with the internet sports service Coliseum that removed Sky's monopoly on pay sports.
Sky chief executive John Fellet said that Neon - which has movies as well as TV shows - will not cannibalise customers who pay for the basic $48.07 Sky TV package, the movie option or specialist channels such as SoHo and Rialto.
Neon will have a lot of repeat content and back issues of TV shows.
The real pressure on Sky will be in sports.
The sports alliance between Lightbox and Coliseum could potentially be a gamechanger and adds to the vulnerability of Sky as its traditional linear TV model comes under pressure.
Sky acknowledged that Fan Pass could draw away some customers from the Sky sports package, which costs $26.68 a month and is a key drawcard for the company.
"It's a very tough market and we are listening to what our customers are saying," said spokeswoman Kirsty Way.
Fan Pass initially will only have sports events that are on the main Sky sports service.
