Telecom is taking on Sky Television in the online TV market, launching a new streaming service,
Lightbox will launch in the coming weeks and will offer around 90 percent of households, with a broadband connection, the chance to watch a variety of TV shows online.
Telecom is spending $20 million on the service and will charge customers a monthly subscription of $15 dollars to watch shows like Madmen, 24, and a new hit programme from the United States, Vikings.
But there is plenty of choice for consumers.
Sky TV is launching an unnamed internet TV service and has the advantage of exclusive rights to some of the world's most popular Hollywood programming for its television arm.
Other subscription services available in New Zealand include Quickflix and Ezyflix.
Peter Wise, a research director at IDC, said Telecom will have its work cut out for it in a busy market.
"Sky is essentially the monopoly here and they spend something like $290 million a year on programming so they are definitely defending their model. And Telecom if you like is more getting into the content space I think, to support their existing broadband model."