The relaunch, which gives a clear nod to the BBC's successful iPlayer, sees a number of new additions to the service.
These include "progressive downloading", which allows for the immediate playback of content, and the incorporation of live channels, such as Sky News and Sky Sports.
The revamping of the service, which was first launched in January 2006, includes a redesign of the service's look and feel. Improvements have been made to the site's navigation, with new features allowing greater personalisation.
Since launch, the service has offered Sky customers access to thousands of hours of content across movies, sport, entertainment, lifestyle & culture and documentaries.
This now includes content from all Sky channels; third party brands such as the History Channel and National Geographic Channel; and blockbusters from all the major Hollywood studios and art-house titles.
Sky said that its Sky Anytime TV, which is now available in 2.7m homes, will retain its current branding, while Sky's mobile service will be re-named shortly.
Griff Parry, director of on-demand, at BSkyB, said: "The changes we are making to the service today will give Sky customers an even richer online experience.
"Our leadership in the breadth and depth of content is being supported by improvements to the service's functionality, such as live channels and instant play and watch.
"As a core component of Sky's multi-platform strategy, Sky Player's role is one of offering Sky customers more value from their relationship with Sky.
"The renaming of the service helps provide our customers with a clearer understanding of what the service delivers, particularly in light of immediate content playback."