Sky has sealed an agreement to offer Netflix via its Sky Q set-top box, in a major shift in the media landscape, even as Comcast, Disney and 21st Century Fox wrangle over the future of the pay-TV giant.

The deal will allow Sky Q households in the UK to add Netflix to their monthly subscription sometime in the next year. Viewers who already have a separate Netflix account will be able to bundle it into their bill. Pricing of new Sky packages including Netflix has not been revealed.

The new partnership is a landmark for both Sky and Netflix.

It is first time that Sky has allowed a rival subscription television service to piggyback on its heavy investment in set-top boxes. Executives have dropped their opposition as Netflix’s $8bn a year and rising programming budget puts pressure on Sky’s pay-TV stronghold.

Sky has responded with increased investment in its own original dramas but recent financial reports have suggested mounting pressure on its core pay-TV business as more Britons take cheaper streaming options. A deal with Netflix ensures high profile Netflix series such as The Crown and Star Trek: Discovery are available via Sky Q and should reduce the risk of frustrated subscribers cancelling their contracts.