Microsoft and Sky have said that consumers demand is to blame for the service being pulled from Xbox Live on the same day it launched.
The companies apologised for the delay, and intend to roll-out the movie and TV viewing service in stages to avoid similar problems.
"Sky Player on Xbox 360 launched on Tuesday 27th October and was met with phenomenal demand, with many tens of thousands of customers attempting to sign up within the first hour of launch," said the companies in a statement.
"Unfortunately due to the unprecedented levels of simultaneous demand, we did not have the capacity to satisfy all service requests and therefore temporarily suspended all access to the service.
"Today, the roll-out will be implemented in phases to ensure that consumers experience both a smooth sign-up process and high-quality experience. We apologise to all customers that have not been able to experience Sky Player on Xbox 360, we assure them that this is being rectified and we thank them for their patience," added the companies.