Sky Network Television wants to double its content capacity and improve its profitability in the long run - but at a short-term cost.
Chief executive John Fellet told its annual shareholders meeting on Friday he expects a flat operating profit for the year ending June 2015 in line with analysts' forecasts.
That would reflect the impact of upgrading all subscribers to internet-enabled My Sky decoders from early next year, costing about $100 million over 18 months.
However, Mr Fellet said the upgrade would double Sky's useable satellite capacity so it can deliver richer content.
Sky is also launching Neon - an internet-based, on-demand, movie and television service aimed at non-subscribers available at $20 per month without a contract, he said.