Tivo digital television will be launched next week.
The set top box acts as a Freeview decoder allowing people with analogue TVs to watch free-to-air high definition television, as well as allowing them to download movies on demand over the internet.
It will be sold exclusively through Telecom from next Friday.
Customers will be able to access pay-per-view entertainment only if they have a broadband subscription through Telecom.
Hybrid chief executive Robbie Minicola says they hope to sell 160,000 boxes within five years.
Meanwhile, Sky TV says the launch of Tivo won't have a big effect on its operations.
Chief executive John Fallet told the company's annual meeting that a similar launch in Australia had no bearing on pay tv over there.
Despite a 4% rise in viewership, Sky posted a profit of $88 million for the year to June - a fall of 10% on 2008.
However, Mr Fellet said profit for the 2010 financial year is forecast to reach about $99m.